Honda Hybrid Federal Tax Credit Begins Phase Out Period

The IRS has announced Honda has officially hit the mark, 60,000 Honda hybrid cars sold in the US, and so the federal government will begin phasing out the federal tax credit system for any Honda Hybrids purchased in 2008.

Honda hit the 60,000 limit during the quarter ending September 30, 2007. That triggered a phase out period. Hybrid purchased before January 1, 2008 will still be eligible for the full tax credit (if you qualify). If you purchase on or after January 1st, you will only be eligible for half the credit (50%). If you purchase on or after June 30, 2008, you will only be eligible for half of that (25%).

Here are the credit amounts for January 1, 2008, through June 30, 2008:

• Honda Accord Hybrid AT, Model Year 2007 — $650
• Honda Accord Hybrid Navi AT, Model Year 2007 — $650
• Honda Civic Hybrid CVT, Model Year 2007 — $1,050
• Honda Civic Hybrid CVT, Model Year 2008 — $1,050

Here are the credit amounts for July 1, 2008 – December 31, 2008:

• Honda Accord Hybrid AT, Model Year 2007 — $325
• Honda Accord Hybrid Navi AT, Model Year 2007 — $325
• Honda Civic Hybrid CVT, Model Year 2007 — $525
• Honda Civic Hybrid CVT, Model Year 2008 — $525

As of January 1st, 2009, you won't qualify for anything at all.