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Nissan Altima Hybrid Federal Income Tax Credit
The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with a tax credit. A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006.
The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.
The credit is computed and given when you file your federal income tax return. It reduces your tax on a dollar for dollar basis. For the 2007 NAH (and probably the 2008 NAH purchased before 12/31/07) the credit will be $2,350. However, once 60,000 are sold it will start to be phased out.
There seem to be serveral gotchas, however, which you can read about in the article linked below "Hybrid tax credit bait and switch."
Please read all of the following links for a better understanding and speak with your tax advisor to determine if you are actually able to benefit from this credit.
Current IRS Guidance (updated frequently)
Fueleconomy.gov better explanation than IRS
Hybrid tax credit bait and switch