As I mentioned in a previous post, I hope TheTaxBook reads like a novel. So I began reading from the beginning, and now I have a question. On page 1-6 I read with interest about the new Alternative Motor Vehicle Credit. Then I turned to page 1-16 for more information. I am considering a hybrid motor vehicle for my next car, so this is why I am interested in the subject.
My question is as follows (from this example).
"$1600 credit if the vehicle achieves at least 200% but less than 225% of the 2002 model year fuel economy"
How do you apply this test? Where do you get the data?
My next question pertains to the phase-out of the credits. "The credit for new qualified hybrid and advanced lean-burn technology vehicles begins to phase out once the manufacturer of a vbehicle sells at least 60000 vehicles beginning after December 31, 2005." How does a tax-professional know how many cars have been sold? What does "phase-out" mean?
Anybody have clarifications?
Gary
My question is as follows (from this example).
"$1600 credit if the vehicle achieves at least 200% but less than 225% of the 2002 model year fuel economy"
How do you apply this test? Where do you get the data?
My next question pertains to the phase-out of the credits. "The credit for new qualified hybrid and advanced lean-burn technology vehicles begins to phase out once the manufacturer of a vbehicle sells at least 60000 vehicles beginning after December 31, 2005." How does a tax-professional know how many cars have been sold? What does "phase-out" mean?
Anybody have clarifications?
Gary
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