Ask the Experts: How do I figure the tax credit on my 2008 hybrid car?
 The federal government sweetens the deal for buyers of hybrid motor vehicles with a tax credit. However, calculating the amount of the credit can be confusing, as it's based on a complex formula determined by the type of vehicle, its weight and fuel economy, and emissions data.
The credit for light vehicles (8,500 pounds or less) contains two components: (1) the fuel economy credit, and (2) the conservation credit. The fuel economy credit amount (ranging from $400 to $2,400) depends on its fuel efficiency compared to 2002 standards. The conservation amount (ranging from $250 to $1,000) is based on the estimated lifetime fuel savings of the vehicle as compared to a comparable 2002 vehicle. Medium and heavy hybrid vehicles get a credit amount based on a certain percentage of the incremental cost of the hybrid over similar gas-powered vehicles. Further, once 60,000 qualifying vehicles are sold by a particular manufacturer, the credit begins to be phased out. Fortunately for you, the burden is on the manufacturer and dealer to supply you with certification that indicates what the credit will be. (You must also meet certain other requirements to qualify.) Here is a partial list of the credit amounts the IRS has announced for 2008 models: |
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| • Chevrolet Malibu | $1,300 | ||
| • Ford Escape 2WD | $3,000 | ||
| • Ford Escape 4WD | $2,200 | ||
| • Mazda Tribute 2WD | $3,000 | ||
| • Mazda Tribute 4WD | $2,200 | ||
| • Mercury Mariner 2WD | $3,000 | ||
| • Mercury Mariner 4WD | $2,200 | ||
| • Nissan Altima | $2,350 | ||
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