Tax Credit for 2006?

[larkinmj]

I'm all set for 2006- I bought my Prius in January (unless I get hit by the AMT- that's another matter.) However, my sister is thinking about buying a Prius (and I am strongly trying to influence her ) Does anyone know if Toyota has hit or is projected to hit the 60,000 figure this quarter? And I heard that they might do away with the 60,000 unit limit- has anyone heard about that?
Perhaps we should have a sticky topic in this forum to track Toyota's hybrid sales figures.

[mikepaul]

I just read that Toyota sold the 60,000 sometime in May...

http://news.yahoo.com/s/ap/20060720/ap_on_...e/taxes_hybrids

[ladyinblack]

<div class='quotetop'>QUOTE(larkinmj @ Jul 21 2006, 09:39 AM) [snapback]289933[/snapback]</div>

I'm all set for 2006- I bought my Prius in January (unless I get hit by the AMT- that's another matter.) However, my sister is thinking about buying a Prius (and I am strongly trying to influence her ) Does anyone know if Toyota has hit or is projected to hit the 60,000 figure this quarter? And I heard that they might do away with the 60,000 unit limit- has anyone heard about that?
Perhaps we should have a sticky topic in this forum to track Toyota's hybrid sales figures.
[/b]

According to the Toyota website they reached the 60k mark in May, However the rebate $3150.00 has been extended to all purchases made thru 9/30/06. It has something to do with the end of the 2nd qtr after they reached they goal. If I remember correctly it is also on the IRS website.

[withersea]

Article on the IRS site.

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

[Betelgeuse]

<div class='quotetop'>QUOTE(larkinmj @ Jul 21 2006, 10:39 AM) [snapback]289933[/snapback]</div>

I'm all set for 2006- I bought my Prius in January (unless I get hit by the AMT- that's another matter.) However, my sister is thinking about buying a Prius (and I am strongly trying to influence her ) Does anyone know if Toyota has hit or is projected to hit the 60,000 figure this quarter? And I heard that they might do away with the 60,000 unit limit- has anyone heard about that?
Perhaps we should have a sticky topic in this forum to track Toyota's hybrid sales figures.
[/b]

The tax credit is reduced by 50% at the end of the quarter following the quarter where they hit the 60K mark. Since Toyota hit the 60K mark in May (i.e. Q2), the credit is cut in half at the end of September (Q3). If I remember correctly, it's cut in half again at the end of December (Q4).

I've heard nothing about doing away with the 60K limit.

EDIT: After reading withersea's link, here's the summary:

Up to September 30, 2006: $3150 Credit
Up to March 30, 2007: $1575 Credit
Up to September 30, 2007: $787.50 Credit
After September 30, 2007: No Credit

[AnOldHouse]

<div class='quotetop'>QUOTE(larkinmj @ Jul 21 2006, 10:39 AM) [snapback]289933[/snapback]</div>

Does anyone know if Toyota has hit or is projected to hit the 60,000 figure this quarter? And I heard that they might do away with the 60,000 unit limit- has anyone heard about that?[/b]

As already stated, the full $3,150 federal tax credit on the Prius is good for deliveries on or before September 30, 2006.

President Bush has suggested that Congress extend the phase out trigger, at least though the end of this calendar year (which would only be of benefit to Toyota/Lexus hybrids...Ford, GM and Honda are nowhere near hitting their 60K phase out triggers). Congress is currently working on a "mini-" energy bill of somesort, but lord only knows what it will actually contain until it is completed and if it will contain an extension provision.

<div class='quotetop'>QUOTE(Betelgeuse @ Jul 21 2006, 11:05 AM) [snapback]289951[/snapback]</div>

If I remember correctly, it's cut in half again at the end of December (Q4).[/b]

No, it's 50% for 2 quarters and then 25% for another 2 quarters.

Therefore, the 50% of the full $3,150 federal tax credit ($1,575) will be available on Prius deliveries between October 1, 2006 through March 31, 2007 and 25% ($787.50) from April1, 2007 through September 30, 2007.

That is, of course, unless Congress modifies the phase out provision as has been proposed by President Bush.