Mr. Kite's point is that you have to be careful which "total tax due" number you're looking at. If you assume that your federal tax situation, the tax rates, and the tax forms will all be the same in 2006 as they were in 2005, the key numbers for you to look at are on your 2005 Form 1040 lines 46 and 56. Take line 56 and add your hybrid credit to it (because you'll be listing the credit on line 55). If your new line 56 amount (with your hybrid credit included) is more than your line 46, you will not get the full benefit of the credit. (As line 57 says, "If line 56 is more than line 46, enter 0.") Note, though, that if the Alternative Minimum Tax applies to you, disregard all of this; you probably won't benefit from the credit anyway.

(Note: It is the amount on line 46 that will be reduced by the credit, not the amount on line 63 as stated by Mr. Kite. Assuming that the line numbers do not change.)

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2006 Barcelona Red Metallic