Hybrid, SUV tax credits at odds SAN FRANCISCO (AFX) -- Environmentalists and customers are clamoring, automakers are reacting and, of course, presidential candidates are doing their best to position themselves accordingly on consumer tax breaks for vehicles. But regardless of all the hybrid hoopla, the U.S. government would still prefer that drivers climb behind the wheel of a fuel-quaffing SUV, given the disparate tax incentives. The current policy allows small business owners to deduct up to $100,000 of the purchase price of trucks that weigh at least 6,000 pounds, more than twice the weight of a Prius. Originally intended to help farmers and small businesses to buy work and delivery trucks, the rule is easily skirted by consumers as a means of discounting expensive SUVs. Read entire article by clicking this link. The SUV tax deduction makes our $1500 seem pretty paltry. Jeff
Unfortunate, but not surprising... While this administration didn't invent this particular tax loophole, it did enlarge it, according to the story. It's hardly surprising, given our current President and V-P and their ties to the oil industry. Then there is Cheney's demonstrated contempt for conservation--I recall seeing a TV news clip of a speech of his a couple of years ago. If I recall correctly, he referred to conservation as being good for nothing other than "personal virtue". But, beyond his words, his tone of voice was dripping with contempt. Given this atmosphere, we're probably fortunate that there is any tax deduction for hybrid car purchase! OK, end of rant. Sorry about getting political there, but this SUV subsidy (which is what it works out to be) really ticks me off...
$25,000, not $100,000 Toyotas do qualify for the SUV rebate also. Buy a Sequoia to take advantage. However the tax liability deduction is now down from $100,000 mentioned in the article to $25,000. Bill '01 Aqua Ice '04 Black #9 "HIGHBRED" '04 White #9
Mind you, such heavy vehicles are prohibited from many roads. If people are getting a tax break just because they're overweight, the powers-that-be should be making an effort to ensure those prohibitions are upheld on the same vehicles.
Frankly, I don't know why this exists at all. As a business, can't they already subtract all operating costs from gross income and depreciate the purchase over a relatively short number of years? Sounds like a double tax break, even for those that are using it legitimately.
Another article on this topic was posted by CBS MarketWatch today. Tax breaks skewed for hybrids, SUVs Deductions for fuel-efficient cars set to phase out by 2007 SAN FRANCISCO (CBS.MW) -- Environmentalists and customers are clamoring, automakers are reacting and, of course, presidential candidates are doing their best to position themselves accordingly on consumer tax breaks for vehicles. But regardless of all the hybrid hoopla, the U.S. government would still prefer that drivers climb behind the wheel of a fuel-quaffing SUV, given the disparate tax incentives. Read entire article by clicking this link. Jeff
