New Energy Tax Credit for Hybrids

Hybrid Vehicle Photo 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
Vehicle Make & Model	Full Credit	50%	25%	No Credit
BMW	Jan. 1, 2006	TBD	TBD	TBD
2011 BMW ActiveHybrid 750i	$900	--	--	--
2011 BMW ActiveHybrid 750Li	$900	--	--	--
2011 Model Year Hybrid Vehicles (as of 5-21-10) (May 21, 2010)

Vehicle Make & Model	Full Credit	Phase Out		No Credit
Vehicle Make & Model	Full Credit	50%	25%	No Credit
BMW	Jan. 1, 2006	TBD	TBD	TBD
2010 BMW ActiveHybrid X6	$1,550	--	--	--
2010 Model Year Hybrid Vehicles (January 4, 2010)

Vehicle Make & Model	Full Credit	Phase Out		No Credit
Vehicle Make & Model	Full Credit	50%	25%	No Credit
Chrysler	Jan. 1, 2006	TBD	TBD	TBD
2009 Chrysler Aspen Hybrid	$2,200	--	--	--
2009 Dodge Durango Hybrid	$2,200	--	--	--
2009 Model Year Hybrid Vehicles (March 19, 2009)

Ford hybrids purchased after March 31, 2010, are not eligible for this tax credit.

Vehicle Make & Model		Full Credit	Phase Out		No Credit
Vehicle Make & Model		Full Credit	50%	25%	No Credit
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
2010 Ford Escape Hybrid	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
2010 Mercury Mariner Hybrid	4WD	$2,600	$1,300	$650	$0
2010 Mercury Milan Hybrid		$3,400	$1,700	$850	$0
2010 Model Year Hybrid Vehicles (as of 10-30-09) Tax Credit for Ford Hybrids Begins Phase-Out (Apr 16, 2009)

Vehicle Make & Model		Full Credit	Phase Out		No Credit
Vehicle Make & Model		Full Credit	50%	25%	No Credit
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
2009 Ford Escape Hybrid	4WD	$1,950	$975	$487.50	$0
2009 Mercury Mariner Hybrid	2WD	$3,000	$1,500	$750	$0
2009 Mercury Mariner Hybrid	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
Vehicle Make & Model		Full Credit	50%	25%	No Credit
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
2008 Ford Escape Hybrid	4WD	$2,200	$1,100	$550	$0
2008 Mercury Mariner Hybrid	2WD	$3,000	$1,500	$750	$0
2008 Mercury Mariner Hybrid	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
Vehicle Make & Model		Full Credit	50%	25%	No Credit
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
2006-07 Ford Escape Hybrid	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
Vehicle Make & Model	Full Credit	50%	25%	No Credit
General Motors	Jan. 1, 2006	TBD	TBD	TBD
2010 Cadillac Escalade Hybrid (2WD & 4WD)	$2,200	--	--	--
2010 Chevrolet Malibu Hybrid	$1,550	--	--	--
2010 Chevrolet Silverado Hybrid (2WD & 4WD)	$2,200	--	--	--
2010 Chevrolet Tahoe Hybrid (2WD & 4WD)	$2,200	--	--	--
2010 GMC Sierra Hybrid (2WD & 4WD)	$2,200	--	--	--
2010 GMC Yukon 1500 Hybrid (2WD & 4WD)	$2,200	--	--	--
2010 GMC Yukon Denali 1500 Hybrid (2WD & 4WD)	$2,200	--	--	--
2010 Model Year Hybrid Vehicles (as of 10-30-09)

Vehicle Make & Model		Full Credit	Phase Out		No Credit
Vehicle Make & Model		Full Credit	50%	25%	No Credit
General Motors		Jan. 1, 2006	TBD	TBD	TBD
2009 Cadillac Escalade Hybrid	2WD	$2,200	--	--	--
2009 Cadillac Escalade Hybrid	AWD	$1,800	--	--	--
2009 Chevrolet Malibu Hybrid		$1,550	--	--	--
2009 Chevrolet Silverado Hybrid (2WD & 4WD)		$2,200	--	--	--
2009 Chevrolet Tahoe Hybrid (2WD & 4WD)		$2,200	--	--	--
2009 GMC Sierra Hybrid (2WD & 4WD)		$2,200	--	--	--
2009 GMC Yukon 1500 Hybrid (2WD & 4WD)		$2,200	--	--	--
2009 Saturn Aura Hybrid		$1,550	--	--	--
2009 Saturn Vue Hybrid		$1,550	--	--	--
2009 Model Year Hybrid Vehicles (March 19, 2009)

Vehicle Make & Model	Full Credit	Phase Out		No Credit
Vehicle Make & Model	Full Credit	50%	25%	No Credit
General Motors	Jan. 1, 2006	TBD	TBD	TBD
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	--	--	--
GM's 2008 Chevrolet and Saturn Certified As Qualified Hybrid Vehicles (Sep. 6, 2007)

Vehicle Make & Model		Full Credit	Phase Out		No Credit
Vehicle Make & Model		Full Credit	50%	25%	No Credit
General Motors		Jan. 1, 2006	TBD	TBD	TBD
2007 Chevrolet Silverado Hybrid	2WD	$250	--	--	--
2007 Chevrolet Silverado Hybrid	4WD	$650	--	--	--
2007 GMC Sierra Hybrid	2WD	$250	--	--	--
2007 GMC Sierra Hybrid	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
Vehicle Make & Model		Full Credit	50%	25%	No Credit
General Motors		Jan. 1, 2006	TBD	TBD	TBD
2006 Chevrolet Silverado Hybrid	2WD	$250	--	--	--
2006 Chevrolet Silverado Hybrid	4WD	$650	--	--	--
2006 GMC Sierra Hybrid	2WD	$250	--	--	--
2006 GMC Sierra Hybrid	4WD	$650	--	--	--
2007 GM Hybrids Still Qualify for Tax Credit (May 2, 2007)

Honda hybrids purchased after December 31, 2008, are not eligible for this tax credit.

Vehicle Make & Model	Full Credit	Phase Out		No Credit
Vehicle Make & Model	Full Credit	50%	25%	No Credit
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
Vehicle Make & Model	Full Credit	50%	25%	No Credit
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
Vehicle Make & Model	Full Credit	50%	25%	No Credit
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
Vehicle Make & Model	Full Credit	50%	25%	No Credit
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
Vehicle Make & Model	Full Credit	50%	25%	No Credit
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	TBD
2009 Mazda Tribute Hybrid	2WD	$3,000	--	--	--
	4WD	$1,950	--	--	--
2009 Model Year Hybrid Vehicles (March 19, 2009)

Vehicle Make & Model		Full Credit	Phase Out		No Credit
Vehicle Make & Model		Full Credit	50%	25%	No Credit
Mazda		Jan. 1, 2006	TBD	TBD	TBD
2008 Mazda Tribute Hybrid	2WD	$3,000	--	--	--
2008 Mazda Tribute Hybrid	4WD	$2,200	--	--	--

Vehicle Make & Model	Full Credit	Phase Out		No Credit
Vehicle Make & Model	Full Credit	50%	25%	No Credit
Mercedes-Benz	Jan. 1, 2006	TBD	TBD	TBD
2010 Mercedes-Benz ML 450 Hybrid	$2,200	--	--	--
2010 Mercedes-Benz S400 Hybrid	$1,150	--	--	--
Mercedes-Benz S400 Certified for Qualified Hybrid Vehicle Credit (Oct. 6, 2009)

Vehicle Make & Model	Full Credit	Phase Out		No Credit
Vehicle Make & Model	Full Credit	50%	25%	No Credit
Nissan	Jan. 1, 2006	TBD	TBD	TBD
2007-10 Altima Hybrid	$2,350	--	--	--
2010 Model Year Hybrid Vehicles (as of 10-30-09) 2009 Model Year Hybrid Vehicles (March 19, 2009) 2008 Nissan Altima Certified as Qualified Hybrid Vehicle (Nov. 13, 2007) Nissan Altima Certified As Qualified Hybrid Vehicle (Jan. 11, 2007)

Toyota hybrids purchased after September 30, 2007, are not eligible for this tax credit.

Vehicle Make & Model	Full Credit	Phase Out		No Credit
Vehicle Make & Model	Full Credit	50%	25%	No Credit
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
2008 Hybrids Certified As Tax Credit For Toyota and Lexus Comes to an End (Nov. 8, 2007) Phase-Out of Credit for Toyota and Lexus Hybrids Continues With Reporting of First Quarter Sales (May 2, 2007)

Vehicle Make & Model	Full Credit	Phase Out		No Credit
Vehicle Make & Model	Full Credit	50%	25%	No Credit
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
2008 Hybrids Certified As Tax Credit For Toyota and Lexus Comes to an End (Nov. 8, 2007) Phase-Out of Credit for Toyota and Lexus Hybrids Continues With Reporting of First Quarter Sales (May 2, 2007)

Vehicle Make & Model	Full Credit	Phase Out		No Credit
Vehicle Make & Model	Full Credit	50%	25%	No Credit
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
2008 Hybrids Certified As Tax Credit For Toyota and Lexus Comes to an End (Nov. 8, 2007) Phase-Out of Credit for Toyota and Lexus Hybrids Continues With Reporting of First Quarter Sales (May 2, 2007)

Vehicle Make & Model	Full Credit	Phase Out		No Credit
Vehicle Make & Model	Full Credit	50%	25%	No Credit
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
2008 Hybrids Certified As Tax Credit For Toyota and Lexus Comes to an End (Nov. 8, 2007) Phase-Out of Credit for Toyota and Lexus Hybrids Continues With Reporting of First Quarter Sales (May 2, 2007)

Sources: Internal Revenue Service and vehicle manufacturers. (Updated June 23, 2010)

Additional Requirements

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

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.

Diagram illustrating phaseout

In addition to the phase out rules, any vehicle purchased after December 31, 2010 will not be eligible for the credit.

Claiming the Credit

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

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.

Hybrids are not eligibe for electric vehicle tax credits.

Additional Information

IRS Home Page
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)
Credit Available for Taxpayers Who Purchased or Leased Hybrid Vehicles In 2006 (IRS, Jan. 4, 2007)
Summary of the Credit for Qualified Hybrid Vehicles (IRS, Updated Nov. 8, 2007)
Spotlight on... Energy Policy Act of 2005 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.

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