Tax News

CCH (cch.taxgroup.com) reports:

The IRS has announced that the American Honda Motor Company, Inc., has reported it has reached the 60,000-vehicle limit as of the quarter ending September 30, 2007, for purposes of the alternative motor vehicle credit; therefore, the credit phase-out for all new passenger vehicles and light trucks will begin on January 1, 2008. The allowable credit for vehicles purchased between January 1, 2008, and June 30, 2008, is 50 percent of the otherwise allowable amount; it is 25 percent of the otherwise allowable amount for vehicles purchased between July 1, 2008, and December 31, 2008. No credit is allowed for vehicles purchased on or after January 1, 2009.
For vehicles purchased between January 1, 2008, and June 30, 2008, the credit amounts are:
--Honda Accord Hybrid AT, Model Year 2007 --$650;
--Honda Accord Hybrid Navi AT, Model Year 2007 --$650;
--Honda Civic Hybrid CVT, Model Year 2007 --$1,050; and
--Honda Civic Hybrid CVT, Model Year 2008 --$1,050.
A complete table of credit amounts is provided for Honda models that have received an acknowledgement of certification from the IRS on or before November 19, 2007.
IR-2007-191, 2007FED ¶46,717
Notice 2007-98, 2007FED ¶46,718
Other References:
Code Sec. 30B
CCH Reference - 2007FED ¶4059E.026
CCH Reference - 2007FED ¶4059E.10
Tax Research Consultant
CCH Reference - TRC INDIV: 57,708