Federal tax credit up to $3,400!
Hybrids purchased or placed into service after December 31, 2005 may be eligible for a federal income tax credit of up to $3,400.
Credit amounts begin to phase out for a given manufacturer once it has sold over 60,000 eligible vehicles.
Vehicles purchased after December 31, 2010 are not eligible for this credit.
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| BMW | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2011 |
 2011 BMW ActiveHybrid 750i |
$900 | -- | -- | $0 |
| 2011 BMW ActiveHybrid 750Li |
$900 | -- | -- | $0 |
 2011 BMW ActiveHybrid X6 |
$1,550 | -- | -- | $0 |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| BMW | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2011 |
| 2010 BMW ActiveHybrid X6 |
$1,550 | -- | -- | $0 |
2010 Model Year Hybrid Vehicles (January 4, 2010)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Chrysler | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2011 |
 2009 Chrysler Aspen Hybrid |
$2,200 | -- | -- | $0 |
 2009 Dodge Durango Hybrid |
$2,200 | -- | -- | $0 |
2009 Model Year Hybrid Vehicles (March 19, 2009)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | ||
|---|---|---|---|---|---|
| 50% | 25% | ||||
| Ford Motor Company | Jan. 1, 2006 | Apr. 1 – Sep. 30, 2009 | Oct. 1, 2009 – Mar. 31, 2010 | Apr. 1, 2010 | |
 2010 Ford Escape Hybrid |
2WD | $3,000 | $1,500 | $750 | $0 |
| 4WD | $2,600 | $1,300 | $650 | $0 | |
 2010 Ford Fusion Hybrid |
$3,400 | $1,700 | $850 | $0 | |
 2010 Mercury Mariner Hybrid |
2WD | $3,000 | $1,500 | $750 | $0 |
| 4WD | $2,600 | $1,300 | $650 | $0 | |
 2010 Mercury Milan Hybrid |
$3,400 | $1,700 | $850 | $0 | |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | ||
|---|---|---|---|---|---|
| 50% | 25% | ||||
| Ford Motor Company | Jan. 1, 2006 | Apr. 1 – Sep. 30, 2009 | Oct. 1, 2009 – Mar. 31, 2010 | Apr. 1, 2010 | |
 2009 Ford Escape Hybrid |
2WD | $3,000 | $1,500 | $750 | $0 |
| 4WD | $1,950 | $975 | $487.50 | $0 | |
 2009 Mercury Mariner Hybrid |
2WD | $3,000 | $1,500 | $750 | $0 |
| 4WD | $1,950 | $975 | $487.50 | $0 | |
Tax Credit for Ford Hybrids Begins Phase-Out (Apr 16, 2009)
2009 Model Year Hybrid Vehicles (March 19, 2009)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | ||
|---|---|---|---|---|---|
| 50% | 25% | ||||
| Ford Motor Company | Jan. 1, 2006 | Apr. 1 – Sep. 30, 2009 | Oct. 1, 2009 – Mar. 31, 2010 | Apr. 1, 2010 | |
 2008 Ford Escape Hybrid |
2WD | $3,000 | $1,500 | $750 | $0 |
| 4WD | $2,200 | $1,100 | $550 | $0 | |
 2008 Mercury Mariner Hybrid |
2WD | $3,000 | $1,500 | $750 | $0 |
| 4WD | $2,200 | $1,100 | $550 | $0 | |
Tax Credit for Ford Hybrids Begins Phase-Out (Apr 16, 2009)
Hybrid Quarterly Sales (as of December 2008) (Mar. 19, 2009)
Purchasers of Ford Hybrids Still Qualify for Tax Credit (Aug. 7, 2007)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | ||
|---|---|---|---|---|---|
| 50% | 25% | ||||
| Ford Motor Company | Jan. 1, 2006 | Apr. 1 – Sep. 30, 2009 | Oct. 1, 2009 – Mar. 31, 2010 | Apr. 1, 2010 | |
 2006-07 Ford Escape Hybrid |
2WD | $2,600 | $1,300 | $650 | $0 |
| 4WD | $1,950 | $975 | $487.50 | $0 | |
 2006-07 Mercury Mariner Hybrid |
4WD | $1,950 | $975 | $487.50 | $0 |
Tax Credit for Ford Hybrids Begins Phase-Out (Apr 16, 2009)
Hybrid Quarterly Sales (as of December 2008) (Mar. 19, 2009)
Purchasers of Ford Hybrids Still Qualify for Tax Credit (Aug. 7, 2007)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | ||
|---|---|---|---|---|---|
| 50% | 25% | ||||
| Ford Motor Company | Jan. 1, 2006 | Apr. 1 – Sep. 30, 2009 | Oct. 1, 2009 – Mar. 31, 2010 | Apr. 1, 2010 | |
| 2005 Ford Escape Hybrid |
2WD | $2,600 | $1,300 | $650 | $0 |
| 4WD | $1,950 | $975 | $487.50 | $0 | |
Tax Credit for Ford Hybrids Begins Phase-Out (Apr 16, 2009)
Hybrid Quarterly Sales (as of December 2008) (Mar. 19, 2009)
Purchasers of Ford Hybrids Still Qualify for Tax Credit (Aug. 7, 2007)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| General Motors | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2011 |
 2011 Cadillac Escalade Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 |
 2011 Chevrolet Silverado Hybrid(2WD & 4WD) |
$2,200 | -- | -- | $0 |
 2011 Chevrolet Tahoe Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 |
 2011 GMC Sierra Hybrid(2WD & 4WD) |
$2,200 | -- | -- | $0 |
 2011 GMC Yukon 1500 Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 |
 2011 GMC Yukon Denali 1500 Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| General Motors | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2011 |
| 2010 Cadillac Escalade Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 |
 2010 Chevrolet Malibu Hybrid |
$1,550 | -- | -- | $0 |
| 2010 Chevrolet Silverado Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 |
| 2010 Chevrolet Tahoe Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 |
| 2010 GMC Sierra Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 |
| 2010 GMC Yukon 1500 Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 |
| 2010 GMC Yukon Denali 1500 Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | ||
|---|---|---|---|---|---|
| 50% | 25% | ||||
| General Motors | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2009 | |
 2009 Cadillac Escalade Hybrid |
2WD | $2,200 | -- | -- | $0 |
| AWD | $1,800 | -- | -- | $0 | |
| 2009 Chevrolet Malibu Hybrid |
$1,550 | -- | -- | $0 | |
| 2009 Chevrolet Silverado Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 | |
| 2009 Chevrolet Tahoe Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 | |
| 2009 GMC Sierra Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 | |
| 2009 GMC Yukon 1500 Hybrid (2WD & 4WD) |
$2,200 | -- | -- | $0 | |
 2009 Saturn Aura Hybrid |
$1,550 | -- | -- | $0 | |
 2009 Saturn Vue Hybrid |
$1,550 | -- | -- | $0 | |
2009 Model Year Hybrid Vehicles (March 19, 2009)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| General Motors | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2009 |
 2008 Chevrolet Malibu Hybrid |
$1,300 | -- | -- | -- |
| 2008 Chevrolet Tahoe Hybrid (2WD & 4WD) |
$2,200 | -- | -- | -- |
| 2008 GMC Yukon 1500 Hybrid (2WD & 4WD) |
$2,200 | -- | -- | -- |
 2008 Saturn Aura Hybrid |
$1,300 | -- | -- | -- |
| 2008 Saturn Vue Hybrid |
$1,550 | -- | -- | -- |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | ||
|---|---|---|---|---|---|
| 50% | 25% | ||||
| General Motors | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2009 | |
 2007 Chevrolet Silverado Hybrid |
2WD | $250 | -- | -- | -- |
| 4WD | $650 | -- | -- | -- | |
 2007 GMC Sierra Hybrid |
2WD | $250 | -- | -- | -- |
| 4WD | $650 | -- | -- | -- | |
| 2007 Saturn Aura Hybrid |
$1,300 | -- | -- | -- | |
 2007 Saturn Vue Hybrid |
$650 | -- | -- | -- | |
2007 GM Hybrids Still Qualify for Tax Credit (May 2, 2007)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | ||
|---|---|---|---|---|---|
| 50% | 25% | ||||
| General Motors | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2009 | |
| 2006 Chevrolet Silverado Hybrid |
2WD | $250 | -- | -- | $0 |
| 4WD | $650 | -- | -- | $0 | |
| 2006 GMC Sierra Hybrid |
2WD | $250 | -- | -- | $0 |
| 4WD | $650 | -- | -- | $0 | |
2007 GM Hybrids Still Qualify for Tax Credit (May 2, 2007)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Honda | Jan. 1, 2006 – Dec. 31, 2007 | Jan. 1 – Jun. 30, 2008 | July 1 – Dec. 31, 2008 | Jan. 1, 2009 |
 2009 Civic Hybrid CVT |
$2,100 | $1,050 | $525 | $0 |
CVT = continuously variable transmission
2009 Model Year Hybrid Vehicles (March 19, 2009)
Honda Hybrid Begins Phase-Out on January 1 (Nov. 19, 2007)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Honda | Jan. 1, 2006 – Dec. 31, 2007 | Jan. 1 – Jun. 30, 2008 | July 1 – Dec. 31, 2008 | Jan. 1, 2009 |
| 2008 Civic Hybrid CVT |
$2,100 | $1,050 | $525 | $0 |
CVT = continuously variable transmission
Honda Hybrid Begins Phase-Out on January 1 (Nov. 19, 2007)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Honda | Jan. 1, 2006 – Dec. 31, 2007 | Jan. 1 – Jun. 30, 2008 | July 1 – Dec. 31, 2008 | Jan. 1, 2009 |
 2007 Accord Hybrid AT & Navi AT (w/ updated control calibration) |
$1,300 | $650 | $325 | $0 |
| 2007 Civic Hybrid CVT |
$2,100 | $1,050 | $525 | $0 |
AT = automatic transmission; CVT = continuously variable transmission
Honda Hybrid Begins Phase-Out on January 1 (Nov. 19, 2007)
Additional Honda Vehicles Certified for Hybrid Tax Credits (Nov. 22, 2006)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Honda | Jan. 1, 2006 – Dec. 31, 2007 | Jan. 1 – Jun. 30, 2008 | July 1 – Dec. 31, 2008 | Jan. 1, 2009 |
 2006 Insight CVT |
$1,450 | $725 | $362.50 | $0 |
| 2006 Accord Hybrid AT & Navi AT (w/o updated control calibration) |
$650 | $325 | $162.50 | $0 |
| 2006 Accord Hybrid AT & Navi AT (w/ updated control calibration) |
$1,300 | $650 | $325 | $0 |
| 2006 Civic Hybrid CVT |
$2,100 | $1,050 | $525 | $0 |
AT = automatic transmission; CVT = continuously variable transmission
Honda Hybrid Begins Phase-Out on January 1 (Nov. 19, 2007)
Seven Honda Vehicles Certified for New Energy Tax Credit (June 1, 2006)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Honda | Jan. 1, 2006 – Dec. 31, 2007 | Jan. 1 – Jun. 30, 2008 | July 1 – Dec. 31, 2008 | Jan. 1, 2009 |
| 2005 Insight CVT |
$1,450 | $725 | $362.50 | $0 |
 2005 Accord Hybrid AT & Navi AT |
$650 | $325 | $162.50 | $0 |
 2005 Civic Hybrid (SULEV) MT & CVT |
$1,700 | $850 | $425 | $0 |
AT = automatic transmission; CVT = continuously variable transmission; MT = manual transmission; SULEV = Super Low Emission Vehicle emissions rating.
Honda Hybrid Begins Phase-Out on January 1 (Nov. 19, 2007)
Seven Honda Vehicles Certified for New Energy Tax Credit (June 1, 2006)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | ||
|---|---|---|---|---|---|
| 50% | 25% | ||||
| Mazda | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2011 | |
 2009 Mazda Tribute Hybrid |
2WD | $3,000 | -- | -- | $0 |
| 4WD | $1,950 | -- | -- | $0 | |
2009 Model Year Hybrid Vehicles (March 19, 2009)
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | ||
|---|---|---|---|---|---|
| 50% | 25% | ||||
| Mazda | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2011 | |
 2008 Mazda Tribute Hybrid |
2WD | $3,000 | -- | -- | $0 |
| 4WD | $2,200 | -- | -- | $0 | |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Mercedes-Benz | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2011 |
 2011 Mercedes-Benz ML 450 Hybrid |
$2,200 | -- | -- | $0 |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Mercedes-Benz | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2011 |
| 2010 Mercedes-Benz ML 450 Hybrid |
$2,200 | -- | -- | $0 |
 2010 Mercedes-Benz S400 Hybrid |
$1,150 | -- | -- | $0 |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Nissan | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2011 |
 2007-11 Altima Hybrid |
$2,350 | -- | -- | $0 |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Porsche | Jan. 1, 2006 | TBD | TBD | Jan. 1, 2011 |
 2011 Cayenne S Hybrid |
$1,800 | -- | -- | $0 |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Toyota | Jan. 1 – Sep. 30, 2006 | Oct. 1, 2006 – Mar. 31, 2007 | Apr. 1 – Sep. 30, 2007 | Oct. 1, 2007 |
 2008 Prius |
$3,150 | $1,575 | $787.50 | $0 |
 2008 Highlander Hybrid (2WD & 4WD) |
$2,600 | $1,300 | $650 | $0 |
 2008 Lexus RX400h (2WD & 4WD) |
$2,200 | $1,100 | $550 | $0 |
 2008 Camry Hybrid |
$2,600 | $1,300 | $650 | $0 |
 2008 Lexus LS 600h |
-- | -- | $450 | $0 |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Toyota | Jan. 1 – Sep. 30, 2006 | Oct. 1, 2006 – Mar. 31, 2007 | Apr. 1 – Sep. 30, 2007 | Oct. 1, 2007 |
| 2007 Prius |
$3,150 | $1,575 | $787.50 | $0 |
| 2007 Highlander Hybrid (2WD & 4WD) |
$2,600 | $1,300 | $650 | $0 |
| 2007 Lexus RX400h (2WD & 4WD) |
$2,200 | $1,100 | $550 | $0 |
| 2007 Camry Hybrid |
$2,600 | $1,300 | $650 | $0 |
 2007 Lexus GS 450h |
$1,550 | $775 | $387.50 | $0 |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Toyota | Jan. 1 – Sep. 30, 2006 | Oct. 1, 2006 – Mar. 31, 2007 | Apr. 1 – Sep. 30, 2007 | Oct. 1, 2007 |
| 2006 Prius |
$3,150 | $1,575 | $787.50 | $0 |
| 2006 Highlander Hybrid (2WD & 4WD) |
$2,600 | $1,300 | $650 | $0 |
| 2006 Lexus RX400h (2WD & 4WD) |
$2,200 | $1,100 | $550 | $0 |
| Vehicle Make & Model | Full Credit | Phase Out | No Credit | |
|---|---|---|---|---|
| 50% | 25% | |||
| Toyota | Jan. 1 – Sep. 30, 2006 | Oct. 1, 2006 – Mar. 31, 2007 | Apr. 1 – Sep. 30, 2007 | Oct. 1, 2007 |
| 2005 Prius |
$3,150 | $1,575 | $787.50 | $0 |
Sources: Internal Revenue Service and vehicle manufacturers. (Updated Oct. 28, 2010)
Additional Requirements
more...The following requirements must be met to claim the credit:
- The original use of the vehicle commences with the taxpayer.
- The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.)
- The vehicle is used mostly in the United States.
- The vehicle must be placed in service by the taxpayer after December 31, 2005 and must be purchased on or before December 31, 2010.
- Click here for more about the credit phase-out and ending date.
Note: Prior to 2009, the hybrid vehicle credit could not be used to offset the alternative minimum tax (AMT). However, beginning in 2009, the credit can be applied against the AMT.
Phase Out & Termination
more...The credit begins to phase out for a manufacturer's vehicles once it sells a total of 60,000 eligible hybrid and lean-burn (e.g., diesel) vehicles starting from January 1, 2006. IRS will announce when a manufacturer exceeds this sales figure.
In addition to the phase out rules, any vehicle purchased after December 31, 2010 will not be eligible for the credit.
Claiming the Credit
more...Fill out Form 8910, Alternative Motor Vehicle Credit.
For hybrids acquired for personal use, report the credit from Form 8910 on the appropriate line of your Form 1040, U.S. Individual Income Tax Return.
Other Tax Incentives
more...Some state and local governments also provide incentives for hybrids. Check with your state or local government or view the U.S. Department of Energy's list of State & Federal Incentives & Laws.
Regular hybrids are not eligibe for electric vehicle tax credits.
Additional Information
more...Qualified Hybrid Vehicles (IRS, Sept. 9, 2010)
Credit Available for Taxpayers Who Purchased or Leased a Wide Range of Hybrid Models In 2007 (IRS, Jan. 2, 2008)
Hybrid Cars and Alternative Motor Vehicles (IRS, Updated Dec. 11, 2007)
Consumer Energy Tax Credits (USDOE)
DISCLAIMER
The information on this page should not be viewed as an official or legally binding document. Other requirements or exceptions may apply. For more detailed information, please consult an IRS tax representative and/or official IRS publications.