History

• The hybrid tax credit was established by the Energy Policy Act of 2005. It was intended to encourage taxpayers to buy energy-efficient automobiles by giving them a one-time credit on their federal income taxes.
  
  

Date of Purchase

• To receive the credit, a qualifying vehicle must be purchased between December 31, 2005, and December 31, 2010.
  
  

Owner Eligibility

• Only the original owner of the hybrid car is eligible to claim the credit. You cannot claim the credit if you purchase a used hybrid car or if you bought the car for someone else to drive.
  
  

Location of Use

• The hybrid car must be used primarily in the United States in order to qualify for the credit.
  
  

Phase-Out

• The hybrid tax credit is phased out by manufacturer based on how many hybrid vehicles they've sold. This phase-out happens in steps after a manufacturer sells 60,000 hybrid units.
  
  

Current Models

• Some 2008-2009 models from General Motors, Ford, Mazda and Nissan still qualify for the credit. Honda, Lexus and Toyota have already had their credits phased out because they have sold the maximum number of vehicles.
  
  

State Credits

• Some states also offer tax credits for the purchase of hybrid cars. Check with your state's department of revenue to determine if you are eligible.