This is just a question to anyone who has heard about the tax credit for the 2006 Honda Civic Hybrid, anyone know what it's projected to be?

I've seen lots of estimates for Honda Civic Hybrids (including in these forums) but they seem to all be for the 2005 (since they list manual and automatic) Civic Hybrid, with the auto being $2100.00, but I'm guessing that won't be accurate.

I would hope that the 2006 Civic Hybrid would do better than that, since it's a generation ahead of the 2005 systems and hopefully cleaner etc..

Anyone heard?

Scott

 

From the IRS:

"The original purchaser of a qualifying hybrid gas-electric car may deduct $2,000 for the year the vehicle is first used, if that year is before 2006. In 2006, the deduction is scheduled to drop to $500. These vehicles qualify for the clean-fuel vehicle deduction:

• Ford Escape Hybrid — Model Year 2006
• Mercury Mariner Hybrid — Model Year 2006
• Lexus RX 400h — Model Year 2006
• Ford Escape Hybrid — Model Year 2005
• Toyota Prius — Model Years 2001 through 2005
• Toyota Highlander Hybrid — Model Year 2006
• Honda Insight — Model Years 2000 through 2005
• Honda Civic Hybrid — Model Years 2003 and 2005
  
• Honda Accord Hybrid — Model Year 2005"
  

here for more info (last updated 4/2005)
and here for the deduction in 2006

so IRS hasn't OK'd the 2006 HCH yet.

yet, honda website's says that there is a clean-fuel tax deduction for the 2006 civic hybrid

click here

all the forms are listed and whatnot, and it has explanations for how to file if you bought your hybrid in 2004 or in 2005.

anybody make sense of what's going on?

 

It seems that we come back to this question about once a week and there's still confusion. The info on the Honda and IRS web sites is for the $2000 deduction that applies equally to all hybrids in 2005. It doesn't address the tax credit that will go into effect in 2006. The tax credit will be determined by a complicated formula that awards a different amount to different vehicle models.

To answer the original question, I think $2100 for the HCH is still our best guess. It probably was calculated based on the parameters of the 2005 model, and so it's possible IMHO that the actual credit will be slightly higher. We'll only know for sure when the proper regulation is published by the IRS. They seem to be in no rush because no one will be in a position to claim the credit until they turn in their 2006 tax return in 2007.

 

There are lots of people looking to buy a hybrid early next year based on that tax credit. Therefore it is incumbent on the Infernal Revenue Service to publish that information ASAP. Of course, since we're taking about a government agency here, logic & common sense go out the window.

 

They already published the guidelines on the credit well in advance, which is how we're able to estimate that it'll be about a $2000 credit for the HCH. We're hardly in the dark.

 

My Honda dealer was puzzled when I said I'll wait to buy in 2006. Then, he found an email from the manager (which I read while he was away) that described how a tax credit is dollar-for-dollar as opposed to a tax deduction where it's just a percentage. It went on to say $1k was necessary for the dealership to take delivery before 2006 and hold on to the car until Jan. 2006.

 

Boy, ain't those guys SNEAKY! They're trying to suck the tax credit right out of the deal. What's a mother to do?

Don

 

Delay your order so that delivery is after January 1.

 

Mine is supposed to arrive in a couple weeks. Ralph Schomp Honda is going to hold the car until after the first of the year. No deposit required...no additional payment required. Right now, they are selling for MSRP. Schomp never charges more than MSRP and doesn't have any additional charges or "forced options". You get the car exactly like you want it.

Of course, this is my fourth HOT selling Honda ('99 Ody, '03 Pilot (first off the lot), '05 Ody) that I am paying MSRP or near MSRP (never over MSRP) with them, so they know me well. Plus, they have made plenty off me already.

 

The 1k was a non-refundable deposit that goes towards the price of the car.