Tax credit reduction

McShemp · 10-24-2005, 08:56 AM

With Toyota looking like they'll sell over half million Priuses in the US next year (not even counting the HH or Lexus), it's safe to assume that the 70,000 vehicle mark will be reached in the 1st quarter. Does that mean 100% of the tax credit will be in effect until the end of the 2nd quarter? Also, would this mean tax credits of 75% and 50% for the 3rd and 4th quarters of '06?

Clar · 10-24-2005, 09:29 AM

check out this link

http://hybridcars.about.com/od/news/...dtaxcredit.htm

Quote:

Originally posted by McShemp@Oct 24 2005, 08:56 AM
With Toyota looking like they'll sell over half million Priuses in the US next year (not even counting the HH or Lexus), it's safe to assume that the 70,000 vehicle mark will be reached in the 1st quarter. Does that mean 100% of the tax credit will be in effect until the end of the 2nd quarter? Also, would this mean tax credits of 75% and 50% for the 3rd and 4th quarters of '06?

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jonmac243 · 10-24-2005, 09:34 AM

Does this mean I should trade my 05 in for an 06 in January to get more money back??

McShemp · 10-24-2005, 11:43 AM

Quote:

Originally posted by Clar@Oct 24 2005, 08:29 AM
check out this link

http://hybridcars.about.com/od/news/...dtaxcredit.htm

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I had the sales numbers wrong. Anyway, it will likely be 100% for Q1 and Q2 and 50% for Q3 and Q4 next year.

Clar · 10-24-2005, 02:31 PM

That's assume Toyota reaches 60k in the 1st quarter.

Quote:

Originally posted by McShemp@Oct 24 2005, 11:43 AM
I had the sales numbers wrong. Anyway, it will likely be 100% for Q1 and Q2 and 50% for Q3 and Q4 next year.

[snapback]144835[/snapback]

If I were Toyota, I'll not ship/sale that 60000th car until April 1, 2006. That way the phase out period won't start until 4th quarter and more consumers will benefit from tax credit.

mrjagster · 02-20-2006, 02:59 AM

We wouldn't need to worry about tax credits if we adopted the Fair Tax

What is the FairTax?
The FairTax is a non-partisan proposal (HR 25/S 1493) that abolishes all federal income taxes, including personal, estate, gift, capital gains, alternative minimum, corporate, Social Security, other payroll, and self-employment taxes, and replaces them all with one simple, visible, federal retail sales tax. The FairTax dramatically changes the basis for taxation by eliminating the root of the problem: Taxing income. The FairTax taxes us only on what we choose to spend, not on what we earn. It does not raise any more or less revenue; it is designed to be revenue neutral. The FairTax is a fair, efficient, and intelligent solution to the frustration and inequity of our current tax system.

EricGo · 02-20-2006, 04:31 AM

Hi macshemp:

100% credit through the calendar quarters until 60K hybrids are sold, and then one addtional quarter. Then 50% for the next two quarters.

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10-24-2005, 08:56 AM	#1
McShemp Senior Member Join Date: Sep 2005 Location: SA, TX Posts: 362 My Car: 2006 Prius Model: Package: #5 Thanks: 0 Thanked 1 Time in 1 Post Friends: 0	With Toyota looking like they'll sell over half million Priuses in the US next year (not even counting the HH or Lexus), it's safe to assume that the 70,000 vehicle mark will be reached in the 1st quarter. Does that mean 100% of the tax credit will be in effect until the end of the 2nd quarter? Also, would this mean tax credits of 75% and 50% for the 3rd and 4th quarters of '06?

10-24-2005, 09:34 AM	#3
jonmac243 Join Date: Apr 2005 Location: Philadelphia Posts: 18 My Car: Model: Package: Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	Does this mean I should trade my 05 in for an 06 in January to get more money back??

02-20-2006, 02:59 AM	#6
mrjagster Join Date: Nov 2005 Location: Jax, FL Posts: 50 My Car: Model: Package: Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	We wouldn't need to worry about tax credits if we adopted the Fair Tax What is the FairTax? The FairTax is a non-partisan proposal (HR 25/S 1493) that abolishes all federal income taxes, including personal, estate, gift, capital gains, alternative minimum, corporate, Social Security, other payroll, and self-employment taxes, and replaces them all with one simple, visible, federal retail sales tax. The FairTax dramatically changes the basis for taxation by eliminating the root of the problem: Taxing income. The FairTax taxes us only on what we choose to spend, not on what we earn. It does not raise any more or less revenue; it is designed to be revenue neutral. The FairTax is a fair, efficient, and intelligent solution to the frustration and inequity of our current tax system.

02-20-2006, 04:31 AM	#7
EricGo Three cats, one Prius, and assorted humans Join Date: Apr 2005 Location: Albuquerque, NM (SouthWest US) Posts: 1,810 My Car: Model: Package: Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	Hi macshemp: 100% credit through the calendar quarters until 60K hybrids are sold, and then one addtional quarter. Then 50% for the next two quarters.