Ford hybrid tax credits are going fast

Ford will soon launch the revitalized Fusion and Mercury Milan lines, continuing the pattern of ongoing improvements to these well-rated sedans. Highlighting the 2010 models is the addition of hybrid variants. Ford is touting a 41 mpg city, 36 mpg highway fuel economy rating for the Fusion hybrid—notably more efficient than the Nissan Altima and Toyota Camry hybrids based on EPA numbers. (Photo is from the 2008 LA Auto Show.)

These Ford Motor Company hybrids, along with the Escape and Mariner hybrid SUVs, are eligible for full tax credits if purchased or ordered before March 31st. After that time, the credits are reduced by 50 percent due to Ford crossing the 60,000-vehicle threshold that begins a scale-down process for tax credits. (See what vehicles are eligible and their credit amounts.)

Like all appealing incentives, there is a catch. Ford says the 2010 hybrids go on sale in the spring, though will not release a date. Spring begins March 20, less than two weeks before the tax credit is reduced.

A Ford representative explained that customers could order a vehicle prior to March 31st, to be delivered later, and still receive the credit. However, it may prove difficult, or even impossible, to secure a test drive prior.

In April, there will still be a significant credit available--$1,700. Ultimately, no matter which vehicle you are drawn to, if a tax credit is a significant factor, be sure to check with your accountant to ensure you can receive it based on your tax scenario. And remember, tax credits do not apply on a lease. (See “Hybrid cars and the vanishing tax credit.”)

Ford Hybrid tax credits

	1/1 - 3/31/09	4/1 - 9/30/09	10/1 - 3/31/10
2010 Fusion Hybrid	$3,400	$1,700	$850
2010 Milan Hybrid	3,400	1,700	850
2009 Escape Hybrid FWD	3,000	1,500	750
2009 Escape Hybrid 4WD	1,950	975	487.50
2009 Mariner Hybrid FWD	3,000	1,500	750
2009 Mariner Hybrid 4WD	1,950	975	487.50

Learn more about the updated 2010 Fusion and read our 2009 Mercury Mariner First Drive.

—Jeff Bartlett

Comments

[Dave]

I believe that the article is erroneous. When I bought my camry hybrid, I was required to have signed the paperwork and received delivery by the date in order to get the credit.

[Jeff]

I have an internal Ford memo that alos states anyone who orders a hybrid before 3/31/09 will be eligible for the full tax credit. I also have read IRS circulars that distinguish between purchase and delivery date. In one example, the IRS clearly states that someone who purchases a hybrid on the last date of eligibility for the full tax credit, but takes delivery several months later, remains eligible for the full tax credit. The only question that I still have is what the IRS means by "purchase." Is a deposit with the order sufficient, or is the full purchase price required?

[bml]

I believe we too have seen that Ford document that indicates if one orders a hybrid prior to the March 31 date, that one will qualify for the higher tax credit. Ford now has a registration process for purchase agreement and order date.