Check out this article in the San Francisco Chronicle regarding the 2006 Tax Credit!

http://www.sfgate.com/cgi-bin/articl...DGC7N75RT1.DTL

Very interesting article. We knew we wouldn't qualify for the credit, because I am disabled and we qualify for a small earned income credit. We thought about different ways we could qualify and there wasn't a way to do so. Didn't realize others would be unable to take the credit. Personally, we would have been better off with the 2005 type dedution from income (I believe). Even so, for us it was a no-brainer, choosing between the TCH and the Camry XLE. So relatively poor families can't get the credit either, but guess we shouldn't be buying an expensive car in the first place. LOL. Laurie

Looks like the best chance to get the credit is to file separate returns. The software should make it easy to compare.

As for the subjects of the People's Republic of California (for whom the article was chiefly written), AFAIC they deserve what they're getting. It was a liberal Democrat Congress that concocted the "gotcha" AMT and didn't index it for inflation. When the monsters people create to attack others turn against them (think Drs. Frankenstein and Morbius), poetic justice is served.

are there any lawyers on the forum that want to start up a class action against whoever is responsible for the bait and switch?

I spent about 5 hours reading IRS forms to ensure the credit would be worth a 2100 dollar credit to me. Nearly all my income is 1099 as a freelance graphic designer / photographer. Therefore the 2100 dollar credit for my 2007 civic hybrid was going to be valuable. Now I find out that it may be worth nothing to me.

I have contacted my representatives both my house member and senators, and will be contacting local news agencies, about the issue and would be willing to provide whatever help I could to get some type of ball rolling.

I truly believe this is a very terrible wrong to the push towards energy independence. It is also just plain wrong.
What what the purpose in being deceptive about the credit?
Why was there no information on the credit page: http://www.irs.gov/newsroom/article/...157632,00.html
about how the AMT and other situations prevent most from claiming the credit?
why would the credit be set up so more wealthy would benefit more than lower income if the purpose was to help put hybrids closer to reach for lower incomes?

this is horrible.

Since I inheirited the existing lease on a company car, I'm unaffected, but that really sucks! I doubt that you have any recourse, though. Sorry...

thats a terrible attitude. It doesn't affect you so you tell me there is nothing I can do? Is there a specific reason you think there is no recourse?

I have contacted my representatives, my local news stations and this board. I suspect that if everyone did the same that would result in recourse.

by the way if you can please digg this: http://www.digg.com/politics/Hybrid_...ait_and_switch

Please read my post again:

"...that really sucks..."

"...sorry..."

I thought I was being sympathetic, and I don't know where you get a "terrible attitude." If you seek out a tax attorney, you will discover what goes into writing the average new tax law. It's not pretty. Should you find a champion for this cause, it would take years to affect a change. A few letters and phone calls won't work.

I really do feel bad about the poorly written law.

The issue I have is that the information to determine that people are not going to get it is not anywhere to be found on the IRS web site. People read the requirements and will believe they get the credit. There is absolutly nothing I have seen on any of the forms or paperwork that would lead anyone to believe they would be eligable for anything but the full amount.

This isnt a poorly written law this is misleading. You dont publish tax forms saying the purchase of a new car will get you a 2100 dollar credit, then pull the rug out from under people when they try to claim it.

and i stand by the comment that saying nothing can be done is a bad attitude. You can be sympathetic and unhelpful at the same time. People need to contact their representatives and let them know that if they don't do something they will be voted against by you and everyone you know. The more I read about the AMT the more furious I get. Its like someone laid down a challenge to the people writing the tax code to see how much they can screw the little guy and they called it the AMT.

if a dealership promises you a rebate then after you sign the paperwork tells you they changed their mind, don't you think someone would do something? But since its our government doing the same thing people just say ... well thats what happens... and walk away.

its a sad state of affairs when writing a letter to representatives is viewed as a waste of time. Just in case someone does want to contact their representatives here are some links:

http://www.senate.gov/general/contac...nators_cfm.cfm
http://www.house.gov/writerep/

point them to the IRS pages that say nothing about the caveats in the rules and to the new article about getting screwed out of the credit. Tell them you expect something to be done, if not another candidate will be getting your vote and you will spend your time making sure everyone you know does the same. I know its not a huge issue, but if you have an unresponsive representative you probably don't need to be voting them back in anyway.

It would be interesting to start a poll to see how many on this forum will not get the tax credit and how many will. Could be used when you write your reps. I don't know how to do it or I would. Anyone else know how? Laurie

When I bought my car, I knew about the possibility of owing AMT, and that I might not get the full credit allowed. I don't think that was hidden anywhere, so they did not decieve you into buying the car.

I think the effort should be spend repealing the AMT, and not at attacking the credit we MIGHT get if we purchase a hybrid.

Luckily, I do qualify for the full allowable amount since I live in texas, but if I had bought before October, I would not, and would have to pay the AMT, so if I had gotten the car 20 days earlier, I would be upset that we even have the AMT. heck, i am still upset that we have the AMT since we might start having kids soon, and if that happens, I will be caught in the AMT.

The poor stay poor, the rich get richer, and us in the middle break our back to keep everything running.