Go Hybrid! Get Federal Tax Credit! 

You may want to consider buying that new Ford Escape Hybrid or Toyota Prius sooner rather than later. There is a federal tax credit available for the purchase of a new, qualifying vehicle beginning in 2006. The IRS has placed limits on this credit and there are phase outs that apply as soon as the manufacturer of the vehicle records its sale of the 60,000th hybrid. As of March 31, 2006, Ford Motor Company sold 6,192 qualifying vehicles. Recently, Toyota Motor Sales sold their 60,000th qualifying vehicle. It is only available to the original purchaser of the vehicle, so leases do not apply. However, the leasing company may claim the credit. The vehicle must be placed in service after 12-31-05 and purchased on or before 12/31/10. There is a complete listing of qualifying vehicles listed on the IRS website (www.irs.gov).

If you have any questions, please contact our Boston CPA Firm, Email us or call 1 (888) 875-9770.

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