Do you get any tax cut on buying the accord hybrid?If yes, how much?

 

So far the Honda Accord is not yet on the "approved list" for the tax deduction. My guess is it will be added retroactively, though. Has anyone heard otherwise?

Only the Civic Hybrid, Insight, Prius and Escape Hybrid have been approved so far.

It takes a while for the government to approve the cars for the deduction.
For instance, the Ford Escape Hybrid wasn't approved until last week, even though the FEH has been on the market since fall.

Here's the details of the deduction for approved cars.

"The clean-buring fuel deduction is a federal tax deduction up to $2,000 for taxpayers for hybrid vehicles first put into service in 2004 and 2005. The deduction decreases to $500 for hybrid cars placed into service in 2006 and there is no deduction for subsequent years. "

 

Please note that if you happen to live in New York State there are significant tax savings in place now for the Accord Hybrid. $2,000 tax credit plus sales tax rebate on $3,000. Other states may have tax advantages as well.

 

I have sent correspondence to Honda asking if they have applied and any status - will post when a reply is received

Extex

 

I had an extensive conversation with a manager at Honda of America at the end of last week. She said the federal certification has been applied for but has not been received yet and had no knowledge about how long it would be. She invited me to call back in a few weeks and might know more. I think her name was Katherine.

 

From the IRS web site:

Honda Vehicles Certified for Clean-Fuel Vehicle Deduction

IR-2005-14, Feb. 10, 2005

WASHINGTON — The Internal Revenue Service has certified the model year 2005 Honda Insight, the Honda Civic Hybrid, and the Honda Accord Hybrid as being eligible for the clean-fuel vehicle deduction. This certification means that taxpayers who purchase one of these hybrid vehicles new may claim a tax deduction of up to $2,000 on Form 1040.

Under the recently signed Working Families Relief Act of 2004, the clean-burning fuel deduction is up to $2,000 for certified vehicles first put into service in 2004 and 2005. The deduction will be limited to $500 for vehicles placed in service in 2006. No deduction will be allowed after 2006.

Federal Law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean-burning fuel. By combining an electric motor with a gasoline-powered engine, these hybrid vehicles obtain greater fuel efficiency and produce fewer emissions than similar vehicles powered solely by conventional gasoline-powered engines.

This one-time deduction must be taken in the year the vehicle is originally used. The taxpayer must be the original owner. Individuals do not have to itemize deductions on their tax return to claim this deduction. This benefit can be taken as an adjustment to income on the Form 1040.

The amount of the deduction for the Insight, Civic Hybrid or Accord Hybrid was set after the manufacturer, American Honda Motor Co. Inc., documented for the IRS the incremental cost related to the vehicle’s electric motor and related equipment.

The IRS has previously certified the Honda Insight for model years 2000-2004 and the Honda Civic Hybrid for model years 2003 and 2004.