As I understand it the tax credit for the 2008 FEH & MMH is $3,000 for the FWD and $2,600 for the AWD model. The tax credit reduces the amount of tax owed to the Federal Government. It has nothing to do with whether you are getting a refund before you figure in the Hybrid tax credit or not. e.g. - Assuming you have a FWD model, if you are getting a $500 tax refund before the Hybrid tax credit is figured in, then your will get a $3,500 tax refund. If you owe the Federal government $500 before you figure in the Hybrid tax credit, then you will receive a $2,500 tax refund.

The only thing that may reduce your Hybrid tax credit is if your income is high enough that you are subject to the AMT (Alternative Minimum Tax). Your tax accountant can explain the issues there.