I have this information posted in another thread. But since I had more to add that was VA specific, I decided to start another thread.
Quote:
I'm a tax assistant for my military base. Today, I was happy to see that Virginia (my state of residence) gives a 10% tax credit (up to $150) on the $2,000 federal tax deduction for clean fuel vehicles. That's $150 off your Virginia tax return! And, the credit can be carried over for five years. Meaning, if you don't use up the whole $150 this year, whatever is left over can be used within the next five years.
We're set up to do all 50 states. I haven't researched each state yet. But as I do, if I see any hybrid discounts, I'll be sure to pass that info onto this forum. Hopefully, it'll help someone out.
Also, to answer the original question: you don't need any specific document to take the $2,000 tax deduction for 2005. As the original poster figured out, most tax software will ask if you have a clean fuel vehicle and give you the appropriate credit.
I can imagine in the future, the hybrid tax credits will be tied to VINs. Kind of like how these days, when you claim dependent children, you have to enter their SSNs. That way, the child can't be claimed more than once (especially for divorced parents). Of course, using the VIN is just my opinion. Who knows what goes on in the minds of IRS personnel.
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http://www.greenhybrid.com/discuss/s...ad.php?p=46104
To add, on the 2005 VA CR form line 30a is where you take the $150 hybrid credit. Line 33 shows your credit for this year. If you can't take the full credit this year, line 34 shows you the amount of carryover for your 2006 tax return.
I haven't had a single person come through me that owned a hybrid. In fact, so far there has only been one person that has come through our tax center (that I know of) that has taken the hybrid deduction. Well, that person, plus myself.
That person has a Hilander Hybrid.
Virginia Tax Credit
