Honda hybrid reaches milestone, hits tax deadline

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The Honda Motor Co. has reached the sales mark of 60,000 hybrid cars, which means the Internal Revenue Service will begin to phase out tax credits for hybrid purchases.

The tax law mandates that tax credits for buying hybrid cars begin to phase out during the second calendar quarter after the quarter in which the manufacturer sells its 60,000th hybrid.

The credit for all new qualified hybrid passenger automobiles or light trucks manufactured by Honda will begin to phase out on Jan. 1.

Beginning Jan. 1, 2009, taxpayers who buy a Honda hybrid cannot claim the related tax credit.