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No Fed Tax incentive if PIP is leased

Discussion in 'Toyota Prius Plug-in' started by mmstuart, Mar 1, 2012.

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  1. mmstuart

    mmstuart New Member

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    They should be doing the same thing Nissan does with the leaf give a $2500 cap reduction to lower the lease payment

    Right from 2012 Toyota Prius Plug-in Hybrid

    Q&A area under prius plug in
    Will the Prius Plug-in qualify for the federal tax incentive?
    +
    Yes, individual purchasers of a Prius Plug-in vehicle may be able to take advantage of the Federal Qualified Plug-in Electric Drive Motor Vehicle tax credit. The Prius Plug-in vehicle tax credit is confirmed to be $2,500.

    QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE TAX CREDIT


    To qualify for the potential Plug-in tax credit:
    1. The Plug-in vehicle must be new. Used vehicles will not qualify.
    2. The Plug-in vehicle must be purchased. Leased vehicles will not allow the lessee to take advantage of the Plug-in tax credit.
    3. The Plug-in vehicle use is primarily in the United States.
    4. The purchaser must retain appropriate documentation showing the purchase of the vehicle and the date of the delivery of the vehicle.

    For personal use vehicles, the Plug-in vehicle tax credit is treated as a nonrefundable personal credit and is limited by the taxpayer's amount of tax liability for the year the car is placed in service. Individual purchasers and corporations who have business use of the Plug-in vehicle are subject to different tax laws that may also substantially reduce or eliminate the above benefits.

    All persons considering the use of this important Federal Plug-in vehicle tax credit should consult with their own tax advisors to determine the specific amount of benefit, if any, that they may be able to claim on their federal income tax returns. Your tax advisor may also have further information on the many state and local tax incentives that may be available to Plug-in vehicle owners.

    Individual tax implications may change, without notice, depending on subsequent changes in the federal tax law or further action by the Internal Revenue Service.

    Please find more information at the Internal Revenue Service (Internal Revenue Service).
  2. SageBrush

    SageBrush Senior Member

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    I doubt this is any different for the other *EV cars. The finance company keeps the tax credit and adjusts the lease terms accordingly (or not, as they see fit.)
  3. mmstuart

    mmstuart New Member

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    According to my dealer they just got the leasing information yesterday. Maybe since the PIP is so new Toyota has not rolled out how to handle the cap reduction based on the finance company getting the $2500 credit. We will have to wait and see what happens. My dealer bought some time to look into it by allowing me to wait until Monday to make a decision if I am doing a loan or a lease.

    Hopefully Erica from Toyota can comment and clear things up.
  4. DianneWhitmire

    DianneWhitmire High PRIUStess

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    Erica did comment in another thread.
    If you lease, there's no Federal tax credit for you.
    By the way, we have had leasing information for a while now.



  5. SageBrush

    SageBrush Senior Member

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    No reason to bother Erica. There are a bazillion websites that will calculate for you the car's price, given the interest rate, residual value, term, sales tax rate, monthly payment, cap reduction and lease fees.
  6. sub3marathonman

    sub3marathonman Active Member

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    Is it possible to post a link to Erica's comment? I searched for the name Erica and didn't find anything. I also tried to look up information about leasing and the Federal tax credit, but didn't find anything very informative. Apologies if my search skills are not the best. Thanks.

    Also, is this a technicality that is being referred to? There is technically no Federal tax credit for the person, but won't the corporation get the credit and pass that on to the person leasing? Or is it that nobody will get a credit if the PIP is leased?

    Also, I have been wondering if anybody can cite a reference in the tax code about a minimum time a lease must be held in order for the corporation to get the credit.
  7. janie

    janie Precious Prius Plug In

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    Erica (Prius Team) - comment can be found here in this thread- http://priuschat.com/forums/dealers...ill-toyota-give-us-fair-deal.html#post1495657
    1 person likes this.