The Internal Revenue Service announced that while the phase-out of the tax credit for Toyota and Lexus hybrids continues, General Motors Corp. and Nissan hybrids still qualify for the full credit.

After reviewing Toyota Motor Sales USA Inc.’s first-quarter sales, the IRS said that purchasers of Toyota and Lexus vehicles may continue to claim the alternative motor vehicle credit. Based on the number of vehicles sold, the phase-out period for Toyota vehicles began in October.

Taxpayers may claim the full amount of the credit up to the end of the first calendar quarter after the quarter in which the manufacturer records the sale of its 60,000th qualified 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 sale of Toyota’s 60,000th qualified vehicle occurred in the quarter ending June 30, 2006.

Toyota sold 61,369 qualifying vehicles to retail dealers in the quarter ending March 31, 2007. This brings the cumulative sales of qualified Toyota hybrid vehicles sold from the period of Jan. 1, 2006, through March 31, 2007, to 273,442.

Meanwhile, GM sold 2,927 qualifying vehicles to retail dealers in the quarter ending March 31, bringing the company’s cumulative number of qualified GM hybrid vehicles sold to 8,485. Nissan sold 2,094 qualifying vehicles to retail dealers in the first quarter ending March 31, 2007.

More information on hybrid vehicles and other alternative motor vehicles can be found on the IRS’s Web site at

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