No Hybrid Tax Credit with AMT
 

My CPA informed me today that I won't receive my $2,600 tax credit for the purchase of my 2006 FEH FWD. It seems that if you are subject to the Alternative Minimum Tax (AMT) your tax credit will not apply. Sadly, my CPA informed me that most of her clients who can afford a hybrid never get to use the credit because they fall under the AMT. This almost seems like a bait and switch scheme when you consider that these vehicles are marketed with the tax credit benefit. There is no prospect of congress revising the AMT anytime soon, as long as we have to continue to pay for the War in Iraq.

How many other hybrid owners on this site fell into the AMT trap?:(

Re: No Hybrid Tax Credit with AMT
 

Sorry you got screwed out of the deal...

It isn't really a bait and switch...in the sense I've never seen any advertising from Ford describing the tax credit or claiming I'd get it or how much I would get. The only info I saw was from the media and the government.

Also... its not a problem limited to the hybrid tax credit. ANY tax credit that gets you below the AMT you will not get... thats why its called an AMT... "alternative minimum tax". The idea is that the MINIMUM tax you are allowed to pay...

It was created to keep the rich from getting out of paying any taxes... unfortunately, with inflation wages and such more and more people who are FAR from rich are falling into it.

Congress keeps talking about it.... but thats all they seem to do is talk.

No Hybrid Tax Credit with AMT
 

The salesman sure hyped the tax credit when he sold me the car!!!:(

Re: No Hybrid Tax Credit with AMT
 

Ah... I see... mine never mentioned it, but then again the credit was pretty new back then.

Frankly alot of people have never even heard of the AMT. It really only started getting news this year. Its likely he had no idea. I'm not saying that if he knew he would have said anything... but I doubt he knew. Most people had no clue until it hit them.

If you think of it that way without knowledge its not much of a bait and switch. I'd try to give the dealer the benefit of the doubt on that one (you have to do warranty work somewhere--hopefully their won't be any of course) and level your anger at the government for a crappy tax code (for as much good as it will do :().

I'm not saying dealers are all honest... far from it... I have some stories about a dealer here in MI and one in VT that will prove that.

Re: No Hybrid Tax Credit with AMT
 

On my 2005 purchased in 2005 I got a $2600 tax DEDUCTION.
I was peeved that they changed it to a CREDIT in 2006.
But does it seem a tax deduction would actually help more people???
:confused:
Don't forget to check your state credits. Mine was one of the best...

Re: No Hybrid Tax Credit with AMT
 

I don't even come close to having to pay AMT, but I still get screwed. I bought my '05 FEH used a month ago.

Re: No Hybrid Tax Credit with AMT
 

Unfortunately, there are no tax credits for used hybrids.

Re: No Hybrid Tax Credit with AMT
 

Oh, I have seen ads from Ford/Mercury about the tax credit. However, they also include, in the fine print, a warning that not every will be able to claim the credit.

Ford/Mercury also run ads which mention their hybrids can use the "car pool" lanes, which is not true in all states (and I think CA just stopped or limited it).

Re: No Hybrid Tax Credit with AMT
 

I think some states have them. They are about 1/2 of a new hybrid buyer gets.

EDIT: Never mind, I was thinking of bills that would have allowed it, but didn't pass.

Re: No Hybrid Tax Credit with AMT
 

Just found out I won't get my $1950 credit thanks to AMT. I was made aware of this possibility a few months ago through this site and some articles, but I don't think anyone understood it when the credit was first announced or when they purchased their vehicle. I don't blame the dealers or manufacturers. I blame congress for creating a credit that the vast majority of consumers can't take. If it was done intentionally, it was a nice way of making it LOOK like the government was offering environmental incentives when in fact it was all for show. Regardless, it doesn't make me happy....though I am happy with my vehicle and my gas mileage.