2008 Prius - Tax Credits

2008 Hybrids Certified As Tax Credit For Toyota and Lexus Comes to an End


IR-2007-186, Nov. 8, 2007

WASHINGTON — The Internal Revenue Service acknowledged the certification by Toyota Motor Sales U.S.A., Inc., that several of its Model Year 2008 vehicles qualify for the hybrid vehicle tax credit. Only vehicles purchased prior to Oct. 1, 2007, qualify for a credit.

For purchases made April 1, 2007, through Sept. 30, 2007, the hybrid vehicle certifications recently acknowledged by the IRS and their credit amounts are:

* 2008 Toyota Prius Hybrid — $787.50
* 2008 Toyota Camry Hybrid —$650
* 2008 Toyota Highlander Hybrid 4WD — $650
* 2008 Lexus LS 600h L Hybrid — $450
* 2008 Lexus RX 400h 2WD and 4WD— $550

No credit is allowed for purchase of these vehicles after Sept. 30, 2007.

The credit amounts reflect a decrease in the credit beginning on Oct. 1, 2006, as a result of the manufacturer’s having sold 60,000 qualified hybrid motor vehicles.

Is "ordering" a Prius prior to Sept. 30 good enough???

<div class='quotetop'>QUOTE(donj51 @ Nov 8 2007, 04:54 PM) [snapback]536865[/snapback]</div>

I called the IRS today and they seemed unsure but then he said no because it said the form 8910 requires an in service date?!?! However I looked at their website and it differentiated between a "purchase date" and "delivery date". It was explaining if you "purchased" it on day A and it was delivered on day B in a different tax year. You can claim the credit for day A. But day B determines what tax year to claim it in. I am under the assumption that if you made a down payment and have a signed purchase agreement on or before Sep 30 then yes you should qualify. I still have not taken delivery of my Prius yet. But I am scheduled to pick it up within a week.

<div class='quotetop'>QUOTE(mrbiggs @ Nov 8 2007, 05:25 PM) [snapback]536938[/snapback]</div>

Thanks, I just assumed all was lost! Sounds like a question for the tax accountant!

That's good news on your Prius, it's worth the wait, even in our climate!

Jim

<div class='quotetop'>QUOTE(mrbiggs @ Nov 8 2007, 07:25 PM) [snapback]536938[/snapback]</div>

If you plan to follow the advice from the IRS website I recommend printing the page and keeping it with your 1040 copies along with documentation dated before 10/1 from the dealer. If the order date is recorded on the form 8910 it won't trigger an audit.

I, too, was concerned about the Tax Credit. From what I have read on the website forms, it looks like you have to have the VIN # (which the dealer can't get until approx. 1 wk before delivery ) and the dealer have the paperwork signed before September 30, 2007. Because the Tax Credit has ended, the delivery date after the deadline probably won't be allowed.

It will be interesting to see if you can still get it. I hope so for your sake.