Tax News

CCH (cch.taxgroup.com) reports:

The IRS announced that purchasers of qualified GMC and Honda hybrid vehicles may continue to claim the alternative motor vehicle tax credit.
The qualified GMC models and corresponding credit amounts are:
--Chevrolet Silverado Hybrid 2WD, model years 2006 and 2007: $250;
--Chevrolet Silverado Hybrid 4WD, model years 2006 and 2007: $650;
--GMC Sierra Hybrid 2WD, model years 2006 and 2007: $250;
--GMC Sierra Hybrid 4WD, model years 2006 and 2007: $650;
--Saturn Vue Green Line, model year 2007: $650; and
--Saturn Aura Hybrid, model year 2007; $1,300.
Purchasers of Honda hybrid vehicles may also continue to claim the credit; the qualified Honda models and the corresponding credit amount are:
--Honda Accord Hybrid, model year 2005: $650;
--Honda Accord Hybrid, model year 2007: $1,300;
--Honda Accord Hybrid Navi, model year 2007: $1,300; and
--Honda Civic Hybrid, model year 2007: $2,100.
GMC sold 969 qualifying vehicles to retail dealers in the quarter ending June 30, 2007, bringing its cumulative number of qualified GMC hybrid vehicles sold as of that date to 9,454. Honda sold 6,518 qualifying vehicles to retail dealers in the quarter ending June 30, 2007, bringing its cumulative number of qualified Honda hybrid vehicles sold as of that date to 58,872.
Taxpayers may claim the full amount of the alternative motor vehicle credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of 60,000 vehicles. During the next two quarters, taxpayers may claim 50 percent of the credit. Taxpayers may claim 25 percent of the credit for vehicles purchased during the fourth and fifth quarters. No credit is allowed after the fifth quarter.
CCH Comment. When asked for clarification about why today's announcement did not include any 2006 model year Hondas, the IRS referred CCH to a July 2007 posting on the IRS website, which did include certain 2006 model year Hondas. The posting may be found at: http://www.irs.gov/newsroom/article/0,,id=157632,00.html.
IR-2007-150, 2007FED ¶46,604
IR-2007-151, 2007FED ¶46,605
Other References:
Code Sec. 30B
CCH Reference - 2007FED ¶4059E.0265
CCH Reference - 2007FED ¶4059E.10
Tax Research Consultant
CCH Reference - TRC INDIV: 57,708