IRS unveils tax-credit figures for Toyota, Ford hybrids

[jkash]

IRS unveils tax-credit figures for Toyota, Ford hybrids

The tax credit, which is available for cars bought on or after Jan. 1, 2006 and runs through 2010, varies based on a model's fuel efficiency, weight and other factors.

For months, consumers and industry watchers have relied on industry estimates to gauge how much of a credit -- a dollar-for-dollar reduction in consumers' tax bills -- will be available to those who purchase hybrid models.
Taxpayers who buy a Toyota Prius, whether a 2005 or 2006 model, will enjoy a tax credit of $3,150, the IRS said.

Read more.

[Vincent]

Great to read something official after all the months of speculative posts.

[mrv]

http://www.irs.gov/newsroom/article/...156048,00.html

Some Toyota and Lexus Vehicles Certified for the New Energy Tax Credit


IR-2006-57, April 7, 2006

Washington — The Internal Revenue Service has acknowledged the certification by Toyota Motor Sales U.S.A., Inc. that several of its 2006 vehicles and a 2005 model year vehicle qualify for the hybrid tax credit enacted by the Energy Policy Act of 2005. The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006, and may be as much as $3,400 for those who purchase the most fuel-efficient vehicles.

The hybrid vehicle certifications recently acknowledged by the Service and their credit amounts are:

2005 Toyota Prius $3150
2006 Toyota Prius $3150
2006 Toyota Highlander 4WD Hybrid $2600
2006 Toyota Highlander 2WD Hybrid $2600
2006 Lexus RX400h 2WD $2200
2006 Lexus RX400h 4WD $2200

Starting in 2006, this tax credit replaces the tax deduction of $2,000 which was previously allowed for taxpayers who purchased a new hybrid vehicle before December 31, 2005 for the clean-burning fuel deduction. The tax credit requires a different certification. Many currently available hybrid vehicles may qualify for this new tax credit.

Consumers seeking the credit may want to buy early since the full credit is only available for a limited time. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th 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.
[/b]

[eak354]

nothing yet about the Hybrid Camry....

[roguenode]

It's probably worth noting that although this applies to both the 2005 and 2006 Prius, it is restricted to new vehicles. As someone looking for an 05 or 06 Prius, I've found a few used models that aren't quite as good of a deal when considering the loss of the $3150 tax credit.

(source: Goverment's Fuel Ecomony Site Article, relevant quote from requirements for claim "The original use of the vehicle commences with the taxpayer.")

[Clar]

how many hybrids has Toyota sold in the 1st quarter? any reports?

[roguenode]

<div class='quotetop'>QUOTE(Clar @ Apr 11 2006, 09:32 AM) [snapback]237995[/snapback]</div>

how many hybrids has Toyota sold in the 1st quarter? any reports?
[/b]

I haven't been able to find an exact figure for Jan thru March. But, March came in at 7922 units, and is reported as a 23% drop from the February. This puts February at 9744 units. Assuming January didn't go over 10k units, the first quarter probably came in somewhere around 27,000 units sold through March.

Edit: Oops, I just noticed you asked about Toyota Hybrid sales, not Prius sales specifically. Sorry, if I find a number that includes the full Toyota/Lexus Hybrid sales, I'll post it.

Final edit: Okay, I have better numbers from GreenCarCongress.com. (January Prius figures are not noted, and my earlier Prius Feb number was wrong. With correct Feb number and assuming Jan sales same as Feb). Here's an approximate sales total for all three Toyota Hybrids Jan - Mar:
Prius - 21,006 units
Highlander Hybrid - 7,881 units
RX400h - 5,679 units

[Clar]

Thanx.

If the trend continues, that means Toyota gonna hit 60k trigger by early June with additional sales figure from CH.

[gtn12130]

Since everyone is wondering about the tax credit and the latest sales numbers for Toyota Hybrids, I thought I would let you all know.

I met with my District Manager today and he gave me updated numbers...

Jan - March (Quarter 1) total hybrids sold = 42,175
This number includes all retail, fleet & wholesale purchases.

This means the 100% Tax Credit of $3150 will be over at the end of the 2nd Quarter (End of July).
In the next two subsequent two-quarter periods, there is no limit to the nubmers buyers who can respectively claim 50% and 25% of the credit. Finally, after the fifth quarter following the quarter in which the manufacturer reaches cumulative sales of 60,000 hybrids, the tax credit expires for that manufacturer. See below:

Prius
100% = $3150
50% = $1575
25% = $787.50

Highlander Hybrid
100% = 2600
50% = 1300
25% = 650

Lexus RX400h
100% = 2200
50% = 1100
25% = 550

Camry Hybrd
TBD

Lexus GS450h
TBD

Of course, with all the tax credits, always consult your local tax consultant.

[jtaft]

I understood the credit differently.
I thought owners will continue to receive the full credit the full quarter after the quarter where 60000 hybrids are sold per manufacturer.
In this case (most likely a 2nd quarter 60000 mark) quarters 1,2, and 3 would qualify for 100% credit and then 50% in quarter 4 and so on.