If you’re still thinking of purchasing a hybrid vehicle this year, time is running out to get in on the Alternative Motor Vehicle tax credit. We pointed out the official IRS schedule of expiring credits back in March, and now you’ve got less than 30 days to score a small credit (currently 25% of the original credit amount) on a Toyota or Lexus hybrid—after September 30th, the credit disappears for good. Honda tax credits may be cut by 50% after September 30th, but the verdict’s still out on this one.
Other AMV credits will continue to exist for a while; for example, alternative fuel vehicles will score you a credit until at least 2010, while fuel-cell vehicles can qualify for credits as high as $12,000 until at least 2014. Which is good, considering that only one car so far meets either category—the Honda Civic GX and the not-available-for-purchase 2006 Honda FCX, respectively.
But remember, if you’re subject to the alternative minimum tax, the credit won’t apply.
“Tax Credits for Fuel-Saving Autos” [SmartMoney.com]