new Prius -- tax credit document?

[mcsj]

Is there a document that I need to get from the dealer for the tax credit? If so, can anyone take a picture of it and post it here?

[eagle33199]

I know it seems a little odd, but there is not document to obtain. the dealer will report your information, and it will go in some big database somewhere... when you file your taxes, you'll mark down your credit, and the some pencil pusher somewhere will check it against the database... if there's trouble, all you would need is your paperwork with your purchase date to prove that you purchased the car within the window for the tax credit. (the credit applies to anyone who buys the car prior to or during the quarter after toyota hits their limit)

[mcsj]

<div class='quotetop'>QUOTE(eagle33199 @ Jun 30 2006, 10:16 AM) [snapback]279092[/snapback]</div>

I know it seems a little odd, but there is not document to obtain. the dealer will report your information, and it will go in some big database somewhere... [/b]

Thanks for the info.

I asked because this is what I've read

http://www.bankrate.com/brm/itax/tips/2003...a2.asp?caret=14
== quote ==

Necessary documentation

Automakers, via your dealership, also must issue a tax credit certification that includes the maximum tax credit for which you are eligible.

The IRS requires that in addition to the type and dollar amount of credit for which the car qualifies, the manufacturer documentation show other information, such as the vehicle's in-city fuel economy, that it complies with various Clean Air Act provisions as well as state emissions laws. Of key importance is certification that the vehicle uses hybrid technology, meaning it has both an internal combustion and a rechargeable energy storage system.

== end quote ==

I bought my Prius last night and all the people in the dealer have no idea what "tax credit certification" they should pass to me. I almost walked out because of that.

[brandon]

Well, I bought before I was able to get in on all of the tax credit action, but here is what Toyota says about the tax credit info, in case you haven't come across it yet:

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

[highroute]

<div class='quotetop'>QUOTE(mcsj @ Jun 30 2006, 08:53 AM) [snapback]279111[/snapback]</div>

I asked because this is what I've read

http://www.bankrate.com/brm/itax/tips/2003...a2.asp?caret=14
== quote ==

Necessary documentation

Automakers, via your dealership, also must issue a tax credit certification that includes the maximum tax credit for which you are eligible.

The IRS requires that in addition to the type and dollar amount of credit for which the car qualifies, the manufacturer documentation show other information, such as the vehicle's in-city fuel economy, that it complies with various Clean Air Act provisions as well as state emissions laws. Of key importance is certification that the vehicle uses hybrid technology, meaning it has both an internal combustion and a rechargeable energy storage system.

== end quote ==
[/b]

I think the text on that bankrate.com Web page is either poorly written and thus subject to misinterpretation or just plain mistaken. As I read the relevant documents, there is no requirement that your dealer give to you a document that says anything at all about your specific vehicle's qualification for the tax credit.

If you follow that link to the page on bankrate.com, you see several paragraphs headed "Necessary documentation". There is a link in the second paragraph sending you on to an IRS document named "Notice 2006-9". Near the beginning, Notice 2006-9 reads

"... Specifically, this notice provides procedures for a vehicle manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) to certify to the Internal Revenue Service (Service) both:
(1) that a passenger automobile or light truck of a particular make, model, and model year meets certain requirements that must be satisfied to claim the new advanced lean burn technology motor vehicle credit under § 30B(a)(2) and c or the new qualified hybrid motor vehicle credit under § 30B(a)(3) and (d); and
(2) the amount of the credit allowable with respect to that vehicle.
This notice also provides guidance to taxpayers who purchase passenger automobiles and light trucks regarding the conditions under which they may rely on the vehicle manufacturer’s (or, in the case of a foreign vehicle manufacturer, its domestic distributor’s) certification in determining whether a credit is allowable with respect to the vehicle and the amount of the credit.
[/b]

Further down, on its page 6, the document continues:

.02 Purchaser’s Reliance. Except as provided in section 5.07 of this notice, a purchaser of a passenger automobile or light truck may rely on the manufacturer’s (or, in the case of a foreign vehicle manufacturer, its domestic distributor’s) certification concerning the vehicle and the amount of the credit allowable with respect to the vehicle (including cases in which the certification is received after the purchase of the vehicle). (The emphasis that follows is mine.) The purchaser may claim a credit in the certified amount with respect to the vehicle if the following requirements are satisfied:
(1) The vehicle is placed in service by the taxpayer after December 31, 2005, and is purchased on or before December 31, 2010.
(2) The original use of the vehicle commences with the taxpayer.
(3) The vehicle is acquired for use or lease by the taxpayer, and not for resale.
(4) The vehicle is used predominantly in the United States.
[/b]

There are four requirements that the purchaser must meet, and none of them has to do with possessing a document from the dealer about the specific vehicle purchased. Toyota is required to certify to the IRS that its Prius vehicle of certain model years meets the requirements. I see no requirement that either Toyota or its dealers are required to certify to any individual purchaser that any specific Toyota Prius auto meets the requirements.

But then I have not read every word of that IRS document. Maybe someone reading this post has the time to do that!

(Note: Section 5.07 appears to pertain to situations where the manufacturer messed up and either it or the IRS finds that in fact vehicles of that model and model year do not qualify.)

[highroute]

<div class='quotetop'>QUOTE(eagle33199 @ Jun 30 2006, 08:16 AM) [snapback]279092[/snapback]</div>

... the dealer will report your information, and it will go in some big database somewhere... when you file your taxes, you'll mark down your credit, and the some pencil pusher somewhere will check it against the database...
[/b]

Maybe, maybe not. There is still a great deal about federal income tax filing that relies on the honor system. The IRS may not be able to detect an error or fraud on this item without doing an audit.

if there's trouble, all you would need is your paperwork with your purchase date to prove that you purchased the car within the window for the tax credit.
[/b]

That is true.

(the credit applies to anyone who buys the car prior to or during the quarter after toyota hits their limit)
[/b]

Yes, it does, but that is not the whole story, so it is misleading to allow that statement to stand. Part or all of the credit is also available for purchases during the five calendar quarters following that "limit hit". The full credit applies during the calendar quarter after the calendar quarter in which the limit hit occurred, 50% of the credit during the next two calendar quarters, and 25% of the credit during the next two calendar quarters. In the case of the Prius (and other qualifying Toyota and Lexus hybrids), 100% of the credit applies through September 30, 2006, then 50% through March 31, 2007, and then 25% through September 30, 2007.