How do I get the 06 tax credit?

There's good coverage of this topic in the Government Incentives of our FAQ.
Short answer: The credit will not reduce your tax liability below your AMT and yes, it is part of you filing for tax year 2006.

 

I am also interested in the tax incentives for buying a 2005 Prius in 2005. I live in New York State. I am not sure what this means:

The Internal Revenue Service (IRS) requires that purchasers retain normal proof of purchase documentation as well as the Toyota Certification letter and Internal Revenue Service Acknowledgement letter as substantiation for the deduction.

What is the Toyota Certification letter and the IRS acknowledgement letter?

Thanks.

 

Click the first link (Toyota.com - Prius - Tax Info) in the above mentioned FAQ.

The letters have not yet been issued/published for MY 2006.
You won't have to provide these to the government. They just have to exist.

 

Thanks, Kiloran.

I just found the letters at Toyota's website. I might as well print them just in case.

http://www.toyota.com/prius/tax.html

 

You're welcome.
Lots of good info and links in the FAQ.
You might check out this thread as well: 2006 Tax Credit Strategy, How to get your $ faster.