Re: Tax credit
I'm not an accountant, but just went through this on my taxes.
In 2008, the Alt. Fuel (hybrid) tax credit does reduce your calculated AMT. The credit is still calculated the same way as 2007 using form 8910, where you have to subtract out all the other higher priority tax credits and the tentative alternative minimum tax to determine the maximum alt. fuel credit.
It only applies to cars purchased in 2008.
Turbo Tax appears to have made the calculation correctly, but we had to check it out because the $2,200 credit we were expecting from out Tahoe was reduced to $750 because of the high tentative AMT value.