USA, Washington DC
The US Internal Revenue Service has confirmed certification by American
Honda Motor Company, Inc., that its Honda Civic GX Model Year 2007
vehicle meets the requirements of the Alternative Motor Vehicle Credit.
The qualified Alternative Fuel Motor Vehicle Credit was enacted by
the Energy Policy Act of 2005. The new credit includes separate credits
for four distinct categories: (1) fuel cell vehicles, (2) advanced lean
burn technology vehicles, (3) hybrid vehicles and (4) alternative fuel
vehicles.
The credit amount for the Honda Civic GX Model Year 2007, which
operates solely on compressed natural gas, is $4,000. The credit is
equal to a percentage of the incremental cost of the alternative fuel
technology.
Honda is encouraging consumers seeking the credit to buy early since
the full credit is only available for a limited time. Taxpayers may
claim the full amount of the allowable credit up to the end of the
first quarter after the quarter in which the manufacturer records its
sale of the 60,000th vehicle. For the second and third calendar
quarters after the quarter in which the 60,000th vehicle is sold,
taxpayers may claim 50 percent of the credit. For the fourth and fifth
calendar quarters, taxpayers may claim 25 percent of the credit. No
credit is allowed after the fifth quarter.
The total number of qualifying Honda hybrid vehicles reported sold as
of Sept. 30, 2006, was 28,408. Therefore, purchasers of Honda's
qualified vehicles may continue to rely on the previously issued IRS
certifications.
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