Time Running Out on Tax Credits for Toyota Hybrids

jkash · 07-22-2006, 09:16 AM

Time Running Out on Tax Credits for Toyota Hybrids

TORRANCE, Calif. — Consumers who stall until September to buy a Toyota gas-electric hybrid will get only half the current federal tax credit because demand for the popular vehicles has surpassed the federal government's 60,000-unit-per-manufacturer cap.

Because of that, the tax credit on the Prius, which got the biggest break, will drop substantially from $3,150 to $1,575 in October and disappear a year later. Last year's energy bill says that an automaker's additional hybrid sales qualify for half the original tax break for six months, then 25 percent for six months before phasing out entirely.

President Bush asked Congress to lift the sales cap in the spring, but nothing has been done thus far.

What this means to you: If you're going to buy a Toyota hybrid, better hustle if you want a break on your personal income tax.

Source: Edmunds.com

the fish · 07-22-2006, 09:21 AM

For some reason I thought that level was met by June 30. No matter, glad to see there is still time.

Jeannie · 07-22-2006, 09:45 AM

The 60,000 mark was reached in May or June, but the full tax credit goes until the end of the calendar quarter AFTER the 60,000 sales, so it's in effect for new Toyota Hybrids purchased up through September 30, 2006 - that means the you take possession of the car before October 1, 2006.

Cruising7388 · 07-24-2006, 09:07 PM

<div class='quotetop'>QUOTE(jkash @ Jul 22 2006, 06:16 AM) [snapback]290432[/snapback]</div>

Quote:

Time Running Out on Tax Credits for Toyota Hybrids

TORRANCE, Calif. — Consumers who stall until September to buy a Toyota gas-electric hybrid will get only half the current federal tax credit because demand for the popular vehicles has surpassed the federal government's 60,000-unit-per-manufacturer cap.

Because of that, the tax credit on the Prius, which got the biggest break, will drop substantially from $3,150 to $1,575 in October and disappear a year later. Last year's energy bill says that an automaker's additional hybrid sales qualify for half the original tax break for six months, then 25 percent for six months before phasing out entirely.

President Bush asked Congress to lift the sales cap in the spring, but nothing has been done thus far.

What this means to you: If you're going to buy a Toyota hybrid, better hustle if you want a break on your personal income tax.

Source: Edmunds.com

Close, but not quite. The date when the tax credit drops to $1575 is October 1.
[/b]

07-22-2006, 09:16 AM	#1
jkash Senior Member Join Date: Nov 2003 Location: West Hills, CA Posts: 861 My Car: 2004 Prius Model: Package: #9 Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	Time Running Out on Tax Credits for Toyota Hybrids TORRANCE, Calif. — Consumers who stall until September to buy a Toyota gas-electric hybrid will get only half the current federal tax credit because demand for the popular vehicles has surpassed the federal government's 60,000-unit-per-manufacturer cap. Because of that, the tax credit on the Prius, which got the biggest break, will drop substantially from $3,150 to $1,575 in October and disappear a year later. Last year's energy bill says that an automaker's additional hybrid sales qualify for half the original tax break for six months, then 25 percent for six months before phasing out entirely. President Bush asked Congress to lift the sales cap in the spring, but nothing has been done thus far. What this means to you: If you're going to buy a Toyota hybrid, better hustle if you want a break on your personal income tax. Source: Edmunds.com __________________ Jeff Mr. Kash's Prius Page

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07-22-2006, 09:21 AM	#2
the fish Join Date: Dec 2005 Posts: 175 My Car: Model: Package: Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	For some reason I thought that level was met by June 30. No matter, glad to see there is still time.

07-22-2006, 09:45 AM	#3
Jeannie Proud Prius Granny Join Date: Apr 2006 Location: Central New Jersey Posts: 1,410 My Car: 2006 Prius Model: Package: #5 Thanks: 2 Thanked 1 Time in 1 Post Friends: 1	The 60,000 mark was reached in May or June, but the full tax credit goes until the end of the calendar quarter AFTER the 60,000 sales, so it's in effect for new Toyota Hybrids purchased up through September 30, 2006 - that means the you take possession of the car before October 1, 2006.