Greecentiv

GM Giving Away Hydrogen Powered SUVs

If you live in Orange County, California, Westchester County, New York, or Washington, D.C., GM is giving away 100 hyrdogen powered Chevy Equinox Fuel Cell vehicles in exchange for feedback.  To see what the application looked like, I entered my old work zip code in downtown DC (a few blocks from the Whitehouse)and it said I wasn't in the test area so I'm not sure what zip codes this is limited to.  But, if you're in one of those areas, you can give it a shot here.

ALERT: Honda Could Sell 60,000th in Q3

Honda expects to hit the 60,000 mark in the third quarter, says spokesman Todd Mittleman. If that happens, purchasers of Honda hybrids will be eligible for the full credit through the rest of the year. In January, the credit will fall by half, dwindle to 25% of the full amount next July and evaporate at the end of 2008.

[Source: USA Today]

Once again, the tax credit is the maximum credit that may be allowed.  The credit is limited by the alternative minimum tax ("AMT").  If the tax credit is deciding factor for you, consult with a tax accountant or tax lawyer to determine exactly how much of the credit you can claim.

What Will It Cost to Drive the Chevy Volt?

The author of the GM-Volt Blog calculated what he thinks it will cost to drive the Chevy Volt based on the cost of electricity in the NY area.  An interesting discussion follows in the comments about the calculations and the cost of electrivity elsewhere.

Senate Bills Introduced Without PHEV Tax Credit

As I posted earlier, the House passed H.R. 2776, which contained -- among a lot of other things -- a plug-in hybrid electric ("PHEV") tax credit. Two new Bills have been introduced in the Senate:  S. 1531 and S. 1508.  Both of these are corollaries to H.R. 2776, but neither contains a hybrid tax credit.  Hopefully, the credit will be included via amendment.  Even if it's not included by amendment in whatever Bill eventually passes the Senate, there is always a chance that the PHEV tax credit emerges from the conference committee.

You might want to call your state's Senators and encourage them to include a PHEV tax credit in the Senate Bill.

IRS Announces Ford Incentives

The IRS announed Ford hybrid tax credits for 2007.  The credit amount and make and model of the vehicles are as follows:

•  Ford Escape 2WD Hybrid, Model Year 2008 -- $3,000
• Ford Escape 2WD, Model Years 2005, 2006 and 2007 -- $2,600
• Ford Escape 4WD Hybrid, Model Year 2008 -- $2,200
• Ford Escape 4WD, Model Years 2005, 2006 and 2007 -- $1,950
• Mercury Mariner 4WD Hybrid, Model year 2008 -- $2,200
• Mercury Mariner 4WD, Model Years 2006 and 2007 -- $1,950
• Mercury Mariner 2WD Hybrid, Model Year 2008 -- $3,000

For the quarter ending June 30, 2007, Ford has sold 33,547 vehicles.  Taxpayers can claim the full amount of the credit up to the end of the first quarter after the quarter in which Ford sells its 60,000th hybrid vehicle.   So you should have no problems claiming the full amount of the credit (assuming you don't run into alternative minimum tax issues, which I will cover in a forthcoming post).

House Passes PHEV Tax Credit

There is not yet a plug-in hybrid electric vehicle (PHEV) tax credit. There are, however, three bills.

The first is H.R. 1331, introduced March 6, 2007 by Rep. Doggett (D-TX) and 108 cosponsors.. The bill would provide a credit up to $6,000 for the purchase of a new PHEV. The bill was referred to the House Committee on Ways and Means where it remains.

The second is S. 1617, introduced June 14, 2007 by Mr. Hatch (R-UT) and cosponsored by Cantwell (D-WA), Obama (D-IL), Kerry (D-MA), Stabenow (D-MI) and Salazar (D-CO). This bill would provide a credit of up to $7,500 for new PHEVs under 10,000lbs and up to $20,000 for larger vehicles. The bill would also provide a credit of up to $4,000 for plug-in conversions. The bill also allows manufacturers of PHEVs to expense the cost of manufacturing facilities instead of having to capitalize and depreciate the cost of such facilities.  (That last one might not make much sense to you unless you are an accountant or tax lawyer.)  The bill was referred to the Committee on Finance where it remains.

The third bill is H.R. 2776, the Renewable Energy and Energy Conservation Tax Act of 2007, introduced June 19, 2007 by Mr. Rangle (D-NY) and 21 cosponsors. The bill would provide a credit of up to $6,000 for new PHEVs. Like the hybrid credit, it is phased out after a manufacturer records a specified number of sale, in this case 60,000. Unlike the hybrid credit, the PHEV credit is available against the alternative minimum tax.  This was an issue with the hybrid credit. Some hybrid buyers found the credit limited by the AMT and were unable to use all of the credit for which they thought they were eligible. It looks like Congress learned from this past mistake.

To view the PHEV credit language in H.R. 2776, see Title II—Conservation, Subtitle A—Transportation, Sec. 201, for details on the PHEV tax credit (page 35 of the .pdf file).

I thought that partisan gridlock would prevent a vote on this before the summer break.  However, H.R. 2776 passed the House (221 to 189) on Saturday night.  We'll see what happens in the Senate.

I'll really dig into the provisions of H.R. 2776 and provide a more detailed analysis in an upcoming post.

Hydrogen-Powered Honda Qualifies for Tax Credit

The IRS acknowledged the certification by Honda that one of its vehicles meets the requirements of the Alternative Motor Vehicle Credit as a qualified fuel cell vehicle.

Purchasers of the 2005 and 2006 Honda FCX, which is only capable of operating on hydrogen, may rely on their certification concerning the vehicle's qualification for the Qualified Fuel Cell Motor Vehicle Credit.

The credit amount for the 2005 and 2006 Honda FCX is $12,000.

To be honest, I had no idea you could buy a Honda that runs on hydrogen.  A little research tells me that there are all of 20 or so in the hands of real customers.  I guess that explains my lack of knowledge on this model.

The 2008 model (pictured) looks pretty nice.