IR-2006-110, July 11, 2006
WASHINGTON — The Internal Revenue Service has acknowledged the certification by General Motors Corp. that its 2007 Saturn Vue Green Line vehicle qualifies for the Alternative Motor Vehicle Credit created by the Energy Policy Act of 2005. This certification is under IRS Notice 2006-9. The tax credit for hybrid vehicles applies to new vehicles placed in service on or after Jan. 1, 2006.
The credit amount for the hybrid vehicle certification of the Saturn Vue Green Line Model Year 2007 is $650.
Starting in 2006, this tax credit replaces the tax deduction of $2,000, which was previously allowed for taxpayers who purchased a new hybrid vehicle before Dec. 31, 2005, for the clean-burning fuel deduction. The tax credit requires a different certification. Many currently available hybrid vehicles may qualify for this new tax credit.
Consumers seeking the credit may want to buy early since the full credit is only available for a limited time. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
Hybrid Cars and Alternative Motor Vehicles