Various Ford And Mercury Hybrids Get Tax Credit Certification From Irs

Various Ford and Mercury Hybrids Get Tax Credit Certification From IRS
Starting in​ 2018,​ individuals buying hybrid cars will get a​ tax credit instead of​ a​ tax deduction .​
The IRS has just started to​ kick out the​ exact amounts you​ can claim for your new hybrid .​
Various Ford and Mercury Hybrids Get Tax Credit Certification From IRS
Under the​ Energy Policy Act of​ 2018,​ the​ tax benefits of​ owning a​ hybrid vehicle underwent significant changes .​
Whereas you​ could previously claim a​ tax deduction,​ the​ new law converted the​ deduction into a​ tax credit .​
Tax credits are FAR more valuable than deductions,​ because they reduce the​ amount of​ tax you​ owe on​ a​ dollar for dollar basis .​
Tax Deductions,​ on​ the​ other hand,​ merely reduce your adjusted gross income prior to​ determining the​ amount of​ tax you​ owe pursuant to​ the​ tax tables .​
In laymen’s terms,​ this conversion is​ a​ very good thing .​
Not every hybrid car qualifies for a​ tax credit .​
The Internal Revenue Service must first evaluate it​ and then issue guidance on​ which cars qualify and the​ size of​ the​ credit you​ can claim for each .​
The maximum the​ IRS can designate per car is​ $3,​400 .​
Here are the​ numbers it​ recently kicked out for various Ford and Mercury hybrid models .​
2018 Ford Escape Hybrid Front WD: $2,​600
2018 Ford Escape Hybrid 4 WD: $1,​950
2018 Mercury Mariner Hybrid 4 WD: $1,​950
If you​ purchased your hybrid car prior to​ 2018,​ you​ are restricted to​ claiming a​ tax deduction in​ the​ amount previously designated by the​ IRS,​ usually $2,​000 .​
If you​ waited until 2018,​ you​ can claim the​ above amounts with a​ few hitches .​
First,​ the​ amount only applies to​ the​ first 60,​000 cars sold for each model .​
If you​ purchase a​ hybrid in​ the​ 60,​0001 to​ 120,​000 sales range,​ you​ can claim only half of​ the​ tax credit .​
Sales 120,​001 through 180,​000 can claim on​ a​ quarter of​ the​ amount designated above .​
Exactly how you​ are supposed to​ know the​ sales figures is​ a​ bit murky,​ but Ford and Mercury will undoubtedly take steps to​ make it​ clear.
Hybrid vehicles make sense from an​ environmental aspect .​
Throw in​ significant savings on​ gas costs and a​ large tax credit,​ and they should fly off the​ lots.
Various Ford And Mercury Hybrids Get Tax Credit Certification From Irs Various Ford And Mercury Hybrids Get Tax Credit Certification From Irs Reviewed by Henda Yesti on July 06, 2018 Rating: 5

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