Hi, I have a question about the federal tax rebate. The $2000 rebate ends this year, and drops to $500 starting 2006 from what I've read. My question is; what if for example, I buy a 2006 Honda Civic Hybrid at the end of 2005? Even though it's a 2006 model, can I still get the $2000 tax rebate since I bought it before the year 2006? Thanks.

-Pete

I doubt the model year of the car makes the difference, I'm guessing when the government says 2006 they mean the year, not the car.

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As my understanding is, yes.

You go by purchase year rather than model year; however, there may be something like you must have it for X months, but as far as I've found, there's not. (Though that government form isn't an easy read.)

First 4WD Hypermiler

Have you read the FEH FAQ?

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They go by the date on the receipt:
- If it's dated December 31, 2005, you get $2000 deducted off your taxable income.

- If it's dated January 1, 2006, you only get $500 subtracted from your taxable income

troy

Troy is correct, as I did that in 2004 for both my HCH (May) and FEH (Dec).

-Charlie...

Awesome, thanks for responding. I am going to try and get mine this year then so I can get a bigger rebate!

There isn't that much difference. For my tax bracket:
$2000 deduction = only $200 less taxes
$ 500 deduction = only $50 less taxes



$150 saved is nothing to get excited about.

troy

Hey, I'll take anything I can get! I could use an extra $150 any day.

Hey, everyone knows that those of us who buy Hybrids are rich, elitist snobs who are all in the highest tax bracket so my two Hybrids should net me, what, $690 each or something in tax savings this year?

But then again, shouldn't all the good liberals out there pass on the tax credit because we all know the government is better at spending our money than we are?

In big letters now....I AM KIDDING!

Ray

I can't speak for the "scheduling," but I must alert you to the awful truth about this thing....it's not a "rebate".

It's a deduction. You deduct $2000 (or whatever the value is) from your taxable income, not from your tax bill. Depending on your particular marginal tax rate, you will save 15%, 20%, 28% or so off of your taxes. For example, if you are in the 28% marginal tax bracket, you will save $2000 X .28 = $560.00

If I'm correct, it's applied in the tax year in which you purchased the vehicle. For example, if you bought it in November, 2005, then it gets calculated for your 2005 tax return due on 4/15/2006. On the other hand, if you buy the car on January 1st, 2006, then it's a tax event that goes on your 2006 return, due on 4/15/2007.

Somebody please correct me if I'm wrong in anything I've said....


EDIT: I see now, I have responded to a thread that has other responses in it already. I thought there were zero responses. What gives? This is the second time this has happened to me on this forum...