Tax Credit Phaseout Period

Kiloran · 11-10-2005, 01:16 PM

11-Nov-2006 Kiloran added the following 2 links to this post.

FAQ - Phase-out of the hybrid tax credit
Alliance to Save Energy - Phase-out of the hybrid tax credit

Transcribed from document at http://www.ne.doe.gov/EPAct2005/hr6_textconfrept.pdf

“(f) Limitation on Number of New Qualified Hybrid and Advanced Lean-Burn Technology Vehicles Eligible for Credit.--
“(1) In general.—In the case of a qualified vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection © or (d) shall be allowed.
“(2) Phaseout period.—For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of qualified vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2005, is at least 60,000.
“(3) Applicable percentage.—For purposes of paragraph (1), the applicable percentage is—
“(A) 50 percent for the first 2 calendar quarters of the phaseout period,
“(

25 percent for the 3d and 4th calendar quarters of the phaseout period, and
“© 0 percent for each calendar quarter thereafter.

Kiloran · 11-10-2005, 01:19 PM

It looks like Toyota will likely reach the 60k threshold in the second quarter.

If that is so and if I'm interpreting the text of the law correctly, the full tax credit for Toyota will be in effect for the first 3 quarters of 2006.

windstrings · 11-10-2005, 01:20 PM

Quote:

Originally posted by Kiloran@Nov 10 2005, 11:19 AM
It looks like Toyota will likely reach the 60k threshold in the second quarter.

If that is so and if I'm interpreting the text of the law correctly, the full tax credit for Toyota will be in effect for the first 3 quarters of 2006.

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If thats true.... many orders now may barely make it by then....

Kiloran · 11-10-2005, 01:25 PM

Quote:

Originally posted by windstrings@Nov 10 2005, 02:20 PM
If thats true.... many orders now may barely make it by then....

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Do you mean that someone ordering today could not expect to receive their car by the end of the third quarter?
Seems unlikely to me.

windstrings · 11-10-2005, 01:32 PM

Quote:

Originally posted by Kiloran@Nov 10 2005, 11:25 AM
Do you mean that someone ordering today could not expect to receive their car by the end of the third quarter?
Seems unlikely to me.

[snapback]153614[/snapback]

Well I heard from someone that the list is pushed back as far as march at many places.. but that could be wrong...

It may have to do with who your dealing with and now many they are allocated at a time?

tripp · 11-10-2005, 01:35 PM

Quote:

Originally posted by Kiloran@Nov 10 2005, 12:25 PM
Do you mean that someone ordering today could not expect to receive their car by the end of the third quarter?
Seems unlikely to me.

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Either way, I'm just glad I already have mine

. That includes ALL models right? Not just the first 60,000 priuses sold but also Highlanders etc, right? Seems like Toyota is selling just shy of 10K Prii/mo (sep/oct). I wonder what that number will be in JAN? I assume that it's expected to be a banner month.

Kiloran · 11-10-2005, 01:40 PM

Quote:

Originally posted by tripp@Nov 10 2005, 02:35 PM
Either way, I'm just glad I already have mine . That includes ALL models right? Not just the first 60,000 priuses sold but also Highlanders etc, right? Seems like Toyota is selling just shy of 10K Prii/mo (sep/oct). I wonder what that number will be in JAN? I assume that it's expected to be a banner month.

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Yes, all models by a manufacturer.
I'd bet January's allocation of hybrids is already reserved.

**tag** · 11-10-2005, 01:40 PM

....for Toyota, that would also include the RX400h.

Kiloran · 11-10-2005, 04:02 PM

I have added this information to the wiki FAQ at http://en.wikibooks.org/wiki/Toyota_Prius_FAQ

tripp · 11-10-2005, 06:52 PM

Kiloran,

What are you basing the projections on? Historical sales data or something else. Just curious.

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11-10-2005, 01:16 PM	#1
Kiloran Join Date: Aug 2005 Posts: 1,225 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	11-Nov-2006 Kiloran added the following 2 links to this post. FAQ - Phase-out of the hybrid tax credit Alliance to Save Energy - Phase-out of the hybrid tax credit Transcribed from document at http://www.ne.doe.gov/EPAct2005/hr6_textconfrept.pdf “(f) Limitation on Number of New Qualified Hybrid and Advanced Lean-Burn Technology Vehicles Eligible for Credit.-- “(1) In general.—In the case of a qualified vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection © or (d) shall be allowed. “(2) Phaseout period.—For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of qualified vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2005, is at least 60,000. “(3) Applicable percentage.—For purposes of paragraph (1), the applicable percentage is— “(A) 50 percent for the first 2 calendar quarters of the phaseout period, “( 25 percent for the 3d and 4th calendar quarters of the phaseout period, and “© 0 percent for each calendar quarter thereafter.

11-10-2005, 01:19 PM	#2
Kiloran Join Date: Aug 2005 Posts: 1,225 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	It looks like Toyota will likely reach the 60k threshold in the second quarter. If that is so and if I'm interpreting the text of the law correctly, the full tax credit for Toyota will be in effect for the first 3 quarters of 2006.

11-10-2005, 01:40 PM	#8
tag Super Moderator Join Date: Nov 2003 Location: Chicago Posts: 2,527 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	....for Toyota, that would also include the RX400h.

11-10-2005, 04:02 PM	#9
Kiloran Join Date: Aug 2005 Posts: 1,225 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I have added this information to the wiki FAQ at http://en.wikibooks.org/wiki/Toyota_Prius_FAQ

11-10-2005, 06:52 PM	#10
tripp Which it's a 'ybrid, ain't it? Join Date: Oct 2005 Location: Denver, CO Posts: 3,431 My Car: 2005 Prius Package: #3 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 2	Kiloran, What are you basing the projections on? Historical sales data or something else. Just curious.