My Ford dealer does not expect to have a Ford Fusion Hybrid until after March 31st. He is telling me that as long as I "order" the car before March 31, I will qualify for the $3,400 rebate. Is this true?
As long as you purchase the car before March 31, you qualify for the full $3,400 tax credit; you can take delivery after March 31 without penalty. If you purchase after March 31, the credit is reduced to $1,700.
According to the IRS, “The date of purchase determines the amount of the credit available for a vehicle, i.e. whether a vehicle is eligible for the full credit or whether a portion of the credit is phased-out. The placed in service date determines the taxable year in which the credit may be claimed.”
Tax analysts at H&R Block say the purchase contract for a new car will set the date for when you qualify for the credit. Delivery paperwork from the dealership will verify the in-service date. As long as the vehicle is placed in service during the 2009 calendar year, you will be able to claim the tax credit on your 2009 taxes.
Hopefully, the dealership will have a 2010 Ford Fusion Hybrid demo for you to drive. We wouldn’t recommend buying the car until you’ve taken a test drive and decided it’s the car for you. If your dealership can’t get you one to drive, look around for a Fusion Hybrid using Cars.com’s listings.
If you aren’t able to drive one beforehand, settling for the $1,700 credit may be worthwhile instead of owning a car you don’t like.
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