Hybrid Tax Credit UpdateSummary
The IRS has certified the amount of federal tax credits available on the 2010MY Fusion / Milan Hybrids. Credit amount is $3,400 for all models. Customers who order or purchase any Hybrids by 3/31/09 will remain eligible for the full tax credit amounts. Beginning 4/1/09 customers who order or purchase any Hybrids will only be able to claim a partial tax credit as described in the table below. As customers consider a Hybrid purchase, please ensure that they are aware of this information.
Tax Credit Update
Since Ford Motor Company reached the 60,000 vehicle threshold in the 4Q2008, under current federal law the tax credit amounts are reduced by 50% beginning 2Q2009 and by an additional 25% beginning 4Q2009. No tax credit amount is available for hybrids after 3/31/10 (1Q2010). Customers who order or purchase any Hybrids by 3/31/09 will remain eligible for the full tax credit amounts.
The tax credit amounts available for 2009 and 2010 model year hybrid vehicles are as follows:
Tax Credit Amount
| |
1/1 - 3/31/09 (1Q2009) |
4/1 - 9/30/09 (2Q & 3Q2009) |
10/1/09 & 3/31/10 (4Q2009 & 1Q2010) |
4/1/10 and later |
| 2010 Ford Fusion Hybrid |
$3,400 |
$1,700 |
$850 |
$0 |
| 2010 Mercury Milan Hybrid |
$3,400 |
$1,700 |
$850 |
$0 |
| 2010 Ford Escape Hybrid |
n/a |
TBD(J#1 7/6/09) |
TBD |
$0 |
| 2010 Mercury Mariner Hybrid |
n/a |
TBD(J#1 7/6/09) |
TBD |
$0 |
| 2009 Ford Escape Hybrid FWD |
$3,000 |
$1,500 |
$750 |
$0 |
| 2009 Ford Escape Hybrid 4WD |
$1,950 |
$975 |
$487.50 |
$0 |
| 2009 Mercury Mariner Hybrid FWD |
$3,000 |
$1,500 |
$750 |
$0 |
| 2009 Mercury Mariner Hybrid 4WD |
$1,950 |
$975 |
$487.50 |
$0 |
Background on the Tax Credit Program
The Alternative Motor Vehicle Credit for hybrid vehicles - powered by both an internal combustion engine and a rechargeable battery - was enacted as part of the Energy Policy Act of 2005. Qualifying vehicles are eligible for a specific amount determined by a formula set by the IRS that is largely driven by a vehicle's fuel efficiency - the more fuel efficient, the higher the tax credit. Shortly after a manufacturer sells its 60,000th hybrid vehicle, the tax credit amounts begin to decrease for the manufacturer's vehicles. In the second quarter after the 60,000th unit is sold, the credit drops to 50% of its full amount for 6 months, followed by 25% of its full amount for an additional 6 months. After that time, the tax credit terminates completely.
Currently, two competitors have been affected by the credit phase-out:
Toyota / Lexus - As of October 1, 2007, tax credits are no longer available for Toyota or Lexus hybrid vehicles.
Honda - Beginning on January 1, 2009, tax credits will no longer be available for Honda hybrid vehicles.
2010 MY data and additional 2009 MY data not yet published on IRS website. For complete information on the federal tax credit program, visit the IRS website at http://www.irs.gov/. For tax credit comparisons between makes, see http://www.fueleconomy.gov/feg/tax_hybrid.shtml.
Comparison of Current Tax Credits
The chart below shows the federal tax credits currently available on select competitor vehicles (as of January, 2009, IRS and EPA websites). 2010 MY data and additional 2009 MY data are not yet published on IRS website.
| 09 Nissan Altima Hybrid |
$2,350 |
| 09 Cadillac Escalade Hybrid 2WD |
$2,200 |
| 09 Cadillac Escalade Hybrid AWD |
$1,800 |
| 09 Chevrolet Malibu Hybrid |
$1,550 |
| 09 Chevrolet Silverado Hybrid (2WD & 4WD) |
$2,200 |
| 09 Chevrolet Tahoe Hybrid (2WD & 4WD) |
$2,200 |
| 09 GMC Yukon 1500 Hybrid (2WD & 4WD) |
$2,200 |
| 09 GMC Sierra Hybrid (2WD & 4WD) |
$2,200 |
| 09 Saturn Aura Hybrid |
$1,550 |
| 09 Saturn Vue Hybrid |
$1,550 |
For complete information on the federal tax credit program, visit the IRS website at http://www.irs.gov/ | 
