Tax Credit Phase Out

gpb5200 · 03-04-2007, 09:20 AM

Why is the tax credit phasing out for Toyota and Lexus models, but from what I can gather on the chart, not other makes and models? Either way, phasing it out makes no sense to me, especially since Dubya is all about tax relief. Oh, wait, I'm not rich enough for permanent tax relief.
Anyone have answers?

Renocat · 03-04-2007, 10:12 AM

The phase out is based on the number of cars sold. Toyota reached their "quota" and the tax credit was cut in half in October.

JimN · 03-04-2007, 09:26 PM

<div class='quotetop'>QUOTE(gpb5200 @ Mar 4 2007, 09:20 AM) [snapback]399869[/snapback]</div>

Quote:

Why is the tax credit phasing out for Toyota and Lexus models, but from what I can gather on the chart, not other makes and models? Either way, phasing it out makes no sense to me, especially since Dubya is all about tax relief. Oh, wait, I'm not rich enough for permanent tax relief.
Anyone have answers?
[/b]

The credits for every manufacturer work the same way. 100% of the credit is in effect through the quarter after 60,000 units are sold. The credit is then cut in half six months later, then half again in another six months. I have a link to the IRS schedule.

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03-04-2007, 09:20 AM	#1
gpb5200 Join Date: Feb 2007 Posts: 19 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Why is the tax credit phasing out for Toyota and Lexus models, but from what I can gather on the chart, not other makes and models? Either way, phasing it out makes no sense to me, especially since Dubya is all about tax relief. Oh, wait, I'm not rich enough for permanent tax relief. Anyone have answers?

03-04-2007, 10:12 AM	#2
Renocat Senior Member Join Date: Jul 2006 Posts: 361 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	The phase out is based on the number of cars sold. Toyota reached their "quota" and the tax credit was cut in half in October.