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Old 05-07-2007, 03:42 PM
nomorebenz nomorebenz is offline
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Real Name: Fred
Hybrids: 2006 Toyota Highlander 4WD
Posts: 176
Default Re: IRS Recaptures Rules Tax Credit When You Sell/Trade your Hybrid?

There is nothing as far as I know regarding a recapture of the credit for Hybrids except the right to have one. IF and I repeat IF there was one, I'm sure it would be similar to the QEV recapture. The Qualified Electric Vehicle recapture, in a nutshell, occurs within three years of ownership IF the vehicle ceases to be a QEV (ie. you put a Hemi in your golf cart). If that happens then a portion of the credit is lost.
Considering how many taxpayers have not been able to take the credit, I don't see it worthwhile in terms of increased revenues to enact a recapture.
So for now, there is NO recapture of the credit for hybrids.

Here's section 30B(h)(8) which is referred to on Form 8910 page 2 regarding the recapture:

"(8) RECAPTURE- The Secretary shall, by regulations, provide for
recapturing the benefit of any credit allowable under subsection
(a) with respect to any property which ceases to be property eligible
for such credit (including recapture in the case of a lease period of
less than the economic life of a vehicle)."

So there you have it. There currently is no regulation regarding section 30B.
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