Tax Credit for buying a 2006 Pre-owned Prius

rubencisneros · Jun 16, 2007

Does a person qualifying for the 2007 tax credit if they buy 2006 pre-owned Prius?

Ruben

Phred · Jun 16, 2007

The tax credit applies only to new vehicles.

From http://www.irs.gov/newsroom/article/0,,id=157557,00.html

Summary of the Credit for Qualified Hybrid Vehicles

Updated frequently â€” last updated Feb. 16, 2006

The Energy Policy Act of 2005 provides a credit for taxpayers who purchase certain energy efficient vehicles, including Qualified Hybrid vehicles.Â¹ Notice 2006-9 provides procedures for manufacturers to certify to the Internal Revenue Service that certain passenger autos and light trucks qualify for the credit and the amount of the credit.Â² The credit amount for qualified hybrid vehicles other than passenger autos or light trucks is computed using a different formula. Guidance regarding the credit for new qualified hybrid motor vehicles that are not passenger automobiles or light trucks will be provided in a separate notice. Generally, for a passenger car or light truck that is a qualified hybrid vehicle, a taxpayer may rely on the manufacturerâ€™s certification that a specific make, model and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies.Â³

Even though a manufacturer has certified a vehicle, a taxpayer must meet the following requirements to qualify for the credit:

1. The vehicle must be placed in service after 12-31-05 and purchased on or before 12-31-10.

2. The original use of the vehicle must begin with the taxpayer claiming the credit.

a. The credit may only be claimed by the original owner of a new, qualifying, hybrid vehicle and does not apply to a used hybrid vehicle.

3. The vehicle must be acquired for use or lease by the taxpayer claiming the credit.

a. The credit is only available to the original purchaser of a qualifying hybrid vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.

b. For qualifying vehicles used by a tax-exempt entity, the person who sold the qualifying vehicle to the person or entity using the vehicle is eligible to claim the credit, but only if the seller clearly discloses in a document to the tax-exempt entity the amount of credit.

4. The vehicle must be used predominantly within the United States.
[/b]
Click to expand...

Eug · Jul 21, 2007

I know the OP is from the US, but for the Canadians:

If you're in Ontario, the PST rebate also applies to pre-owned vehicles, up to $2000. I don't know about other provinces however.

libra5979 · Dec 5, 2007

Bummer. I was hopeful that she could give me a little tax credit... but i love her anyway.

Tax Credit for buying a 2006 Pre-owned Prius

rubencisneros New Member

Phred New Member

Eug Swollen Member

libra5979 New Member

About PriusChat

Quick Navigation

Like us on Facebook

Buy us a beer!

Useful Searches

Tax Credit for buying a 2006 Pre-owned Prius

rubencisneros New Member

Phred New Member

Eug Swollen Member

libra5979 New Member