GM hybrids still eligible for federal tax credit

WASHINGTON - The Internal Revenue Service said Wednesday that hybrid cars made by General Motors Corp, are still eligible for a tax credit intended to encourage buying the fuel-efficient cars because the company has not yet hit a legal cap on the credit.

The federal tax credit for new hybrid vehicles begins to phase out after a car maker has sold 60,000 hybrid or other fuel-efficient vehicles.

GM has sold more than 5,500 hybrid trucks and SUVs made by Chevrolet, Saturn and GMC since the credit started last year, with more than 3,300 sold in the fourth quarter of 2006, the IRS said.story continued