IRS Releases Tax Credit Figures for Ford and Toyota Hybrids
April 12, 2006
The U.S. Internal Revenue Service (IRS) announced on April 7th the official dollar amounts for federal tax credits earned with the purchase of Toyota and Ford hybrid vehicles. Anyone who purchased a new 2005 or 2006 Toyota Prius since January 1st may receive a credit of $3,150 on this year's taxes, while smaller credits can be earned by buying the Toyota Highlander Hybrid or the Lexus RX400h. For Ford, the 2006 Escape Hybrid with front wheel drive earns the largest credit, at $2,600, while the four-wheel-drive Escape Hybrid and Mercury Mariner Hybrid earn a credit of only $1,950. The agency has not announced the tax credit figures for Honda, but since the earlier estimates by the American Council for an Energy Efficient Economy (ACEEE) proved accurate for Ford and Toyota, those estimates are probably a reliable guide for Honda. After each automaker sells 60,000 hybrid vehicles, the tax credits will begin to phase out. See the IRS press releases on the Ford and Toyota hybrids, and for Honda, see the ACEEE estimates (PDF 74 KB). Download Adobe Reader.