IRS Affirms Hybrid Tax Credit for GM, Honda Vehicles

INDUSTRY NEWSIRS Affirms Hybrid Tax Credit for GM, Honda Vehicles

WASHINGTON (Sept. 20, 2007) - The Internal Revenue Service announced that purchasers of American General Motors Corp. (GMC) and Honda Motor Co. Inc. (Honda) qualified hybrid vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. GMC sold 969 qualifying vehicles to retail dealers in the quarter ending June 30, 2007. This brings the cumulative number of qualified GMC and Honda hybrid vehicles sold to 9,454 and 58,872, respectively. IRS regulations allow original purchasers of these vehicles to claim the full amount of the credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter. The list of approved credits follows below:

Allowable Alternative Motor Vehicle Credit
2006/07 Chevrolet Silverado Hybrid 2WD	$250
2006/07 Chevrolet Silverado Hybrid 4WD	$650
2006/07 GMC Sierra Hybrid 2WD	$250
2006/07 GMC Sierra Hybrid 4WD	$650
2007 Saturn Vue Green Line Hybrid	$650
2007 Saturn Aura Hybrid	$1,300
2005 Honda Accord Hybrid	$650
2007 Honda Accord Hybrid	$1,300
2007 Honda Accord Hybrid Navi	$1,300
2007 Honda Civic Hybrid	$2,100

(Source: IRS)