I ordered a 2WD Ford Escape Hybrid last week and was told it would likely be delivered in January. So, I'm thinking that I will pay for the vehicle in late December, in order to claim the $3,000 credit on my 2007 return.

In discussing this with my dealer, they say that regardless of my paying for in 2007, I can't claim it as a 2007 credit, as the delivery date, not the payment date, determines the "purchase".

I don't think that's correct. Advice is appreciated.

 

I think the dealer is right on this one. That's a rare statement from me! But I think "when the vehicle is put into use" or "placed into service" is the key, not when the deal paperwork (or even full payment) is done. Your CPA (or even TurboTax) should know. I'm sure the exact verbage can be found on the IRS web-site, somewhere.

BTW, welcome to our little clubhouse. It's a good place to hang.

 

I concur with Gumby. Placed into service is the requirement and talking to your accountant is a must.

The credit is not guaranteed.

I entered into the purchase figuring that I would get about $2100 of the $2600. I ended up with $1800. Talk to your accountant before relying on the credit.

 

Thanks Guys,

I have pulled up IRS form 8910, and line 2 specifies "date placed into service".

Well, that's that. I do have a big Schedule E deduction for 2007 that should minimize any payment due, so it may not be so bad if I have to wait until 2009 to file for the hybrid credit.

Being new here, I have a lot of reading to do. Great forum!