A few years ago, to encourage Americans to buy more fuel-efficent, low-emission vehicles, Congress approved giving a nice tax credit to anyone who bought a hybrid vehicle.
Ford has done particularly well at selling its hybrids -- a little too well, in fact. So if you want the very fuel-efficient 2010 Ford Fusion hybrid or 2010 Mercury Milan hybrid AND the full credit of $3,400 on your taxes, you've got to buy one by March 31.
After that, the credit is slashed in half.
According to the IRS, Ford has sold 66,000 of its hybrids -- mostly the less efficient Ford Escape and Mercury Mariner SUVs -- while GM has sold half that. The law that created the tax credit presumes that any carmaker selling more than 60,000 hybrids no longer needs a tax credit to persuade buyers to purchase one.
Since Ford hit that mark in the last quarter, the credit will now begin being phased out, just as the Fusion is due to hit the market.
"After March 31, the tax credits will drop from $3,400 to
$1,700," the Cleveland Plain-Dealer reported. "In the fourth quarter of 2009, it will drop an
additional 25 percent, and there will be no tax credit after
March 31, 2010."
But the problem with the phase-out, notes the Los Angeles Times, "is that these miraculous testaments to American ingenuity
aren't due to hit dealership lots until right around the time that tax
credit expires, March 31, or perhaps slightly after that date. That
means that environmentally conscious consumers, tempted by the sharp
looks and gas-sipping ways of the new mid-sized sedans, will find
themselves in the frustrating position of reaching out for that $3,400
tax credit, only to find that it's dropped to $1,700. Hocus-pocus."
[2010 Ford Fusion from Ford website]
--Craig Pittman
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