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IRS Tax Credit misinformation?

Discussion in 'Gen 1 Prius Plug-in 2012-2015' started by forte88, Nov 12, 2012.

  1. forte88

    forte88 Member

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    I recently leased a PIP. When leasing it, Toyota only gave me 1000.00 Toyota Rebate. I was told at the dealership that I could still claim the $2500.00 tax credit, even tho it was a lease. It's obvious that the credit was not taken off the price of the vehicle since they only gave me a rebate of 1000.00. So I was totally planning on.. and counting on.. the IRS tax credit. So yesterday.. I also lease a Nissan Leaf.. eligible for 7500.00 tax credit. At the Nissan Dealership.. they said.. anything I get from the FED or anywhere else is totally my right to claim. I went there thinking that the 9775.00 rebate on the lease was part of the $7500.00 FED tax credit but they told me differenly. So I went home pretty darn happy about that. Going to the Nissan Leaf Forums I'm finding out that the 7500.00 IS taken out of the 9775.00 they gave me as a rebate. Pretty much what I expected for that kind of rebate and I will have to educate Nissan dealer today. However.. now on my Prius.. I Was told specifically that I could claim that 2500.00 tax credit and the only rebate I got from Toyota was $1000.00. Not even half of the 2500.00! So what's the deal? Can I claim it? Or Not? And where Do I raise holy hell?
     
  2. CharlesH

    CharlesH CA HOV Decal #5 on former PiP

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    All of the discussion on this topic here as stated that the tax credit ($2500 for the PiP) goes to the owner of the car, which is the leasing company (lessor) in the case of a lease, and the only way for the person leasing the car (the lessee) to see any benefits of the credit is through the terms of the lease.
     
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  3. Tracksyde

    Tracksyde Member

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  4. cwerdna

    cwerdna Senior Member

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    I don't think you can claim it. You're not the owner of the PiP.

    This has been discussed at PIP Lease Terms - Will Toyota Give Us a Fair Deal? | PriusChat and No Fed Tax incentive if PIP is leased | PriusChat.

    Nissan and GM handle this better in the case of leases.
     
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  5. usbseawolf2000

    usbseawolf2000 HSD PhD

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    Hmm... This thread got me thinking...

    I assumed I would be the one getting the tax credit because I bought mine and am financing with 0%. I won't have the title until I pay it off.
     
  6. lensovet

    lensovet former BP Brigade 207

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    you are still considered the owner when financing, just that there's a lien holder who is the bank.
     
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  7. lensovet

    lensovet former BP Brigade 207

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    just like when you mortgage a home, it is considered to be "owned" by you while you're paying off the mortgage. otherwise the term "repossess" wouldn't make much sense if the home was already possessed by the bankā€¦
     
  8. terpsmandan

    terpsmandan Member

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    But you will get the title in mail soon from Albany.
     
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  9. terpsmandan

    terpsmandan Member

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    I leased so I know that I am out.
     
  10. forte88

    forte88 Member

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    Wow.. this really.. REALLY SUCKS!! So Toyota is taking the 2500.00 tax credit on a car WE are paying for because there is a residual at the end of the lease for pay off. We are paying on the principal are we not? On top of that.. I get false information from the dealer.. as well as from Prius Chat's own Prius dealer (deleted out of respect for PriusChat user) that I spoke with on the phone prior to purchase about getting the tax credit despite it being a lease. Her words "I leased mine and am claiming it". I was really counting on that credit.. and with my income I know I would have been eligible for all of it. Not only that.. I have convinced others to lease a Prius on this information... and now I'm going to have to tell them.. uhhh sorry. Dealers gave me bad info. EXTREMELY P.O.'d right now!!! Heads will roll!!!
     
  11. austingreen

    austingreen Senior Member

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    Its yours a loan is different than a lease.
     
  12. Tracksyde

    Tracksyde Member

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    That sucks.. my co-worker who leased a Volt was also talking about claiming the $7500 federal tax credit.. thats why I looked up the IRS form and emailed it to him to let him know. He said his brother-in-law told him he was eligible and that he too was going to claim it (he also leased a Volt). I'm not sure if he got that info from the dealer.. but given the amount of misinformation out there, I wouldn't doubt it.

    Keep in mind also there is a California CVRP (Clean Vehicle Rebate Project) rebate of $1500 that the PiP is eligible for. That rebate can be claimed by a lessee (the one leasing the car) provided you keep the car for at least 3 years (you're supposed to give the rebate back if you don't keep the car for 3 years.. good luck with that).

    The CVRP rebate has nothing to do with the federal tax credit.

    How much is your Prius Plug-in lease? Unless you got totally screwed by the dealer, chances are the federal tax credit is factored into your lease somehow.
     
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  13. forte88

    forte88 Member

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    Here is the actual tax code from the IRS:
    Section 30D originally was enacted in the Energy Improvement and Extension Act of 2008. The American Recovery and Reinvestment Act of 2009 amended section 30D effective for vehicles acquired after December 31, 2009. The vehicle must be acquired for use or lease and not for resale. Additionally, the original use of the vehicle must commence with the taxpayer and the vehicle must be used predominantly in the United States. For purposes of the 30D credit, a vehicle is not considered acquired prior to the time when title to the vehicle passes to the taxpayer under state law.

    Notice that it states the the vehicle must be aquired for use or lease... and the vehicle MUST commence with the taxpayer. Toyota are ripping us off of our tax credits. I can understand putting them toward the principal.. but taking over half of it? And just pocketing it? Then basically selling it and calling it a lease? Charging interest on lease in most cases.... There is something seriously wrong here.. it needs addressed. And I aim to cause a big stink about this.
     
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  14. forte88

    forte88 Member

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    I already got the $1500.00. Thanks . I plan on getting the 2500.00 for my Nissan Leaf as well. But at least with the Nissan they gave me a rebate of $9775.00 which more than covers the amount of the fed tax credit. AND I can still get the 2500.00 from the state.
     
  15. John H

    John H Senior Member

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    When I shopped at a local Chevy dealer I had to sign a BOLD LETTERED FORM explaining that the $7500 Federal Tax credit was not available to the lessee.

    Maybe your co-worker, or his brother-in-law, got their misinformation from a Toyota dealer.
     
  16. forte88

    forte88 Member

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    I think this is the first time that I've been totally disgusted with Toyota and their business practices. To be blatantly lied to at the dealership.. and not just at one dealership... It's rampant out there. This is a lot of money here!
     
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  17. JMD

    JMD 2012 Prius 4 Solar Roof

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    I believe he is correct. You are not the owner and cannot claim the Tax Credit. Take my advice and make a call to your Accountant to be sure.
     
  18. forte88

    forte88 Member

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    The more I think about it.. I must have mentioned at least 10 times how please I was with the deal since I could take an additional 2500.00 tax credit.. at the dealership. I talked about it with two separate sales staff that worked on the deal with me.. as well as the finance guy. Wow.. Manhattan Beach Toyota is now on my black list. That also goes to (deleted out of respect for PriusChat user) who lied to me about this over the phone on a pre-sale phone call. I had a good experience with her in the past when I leased my 2010.. but this just cost me big.. I would have not leased this car if this information was known to me. What's worse.. I asked several times to confirm.. all I can say is WOW.. crooks!!
     
  19. John H

    John H Senior Member

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    If you call TFS they may let you out of the lease and just let you buy it if you want to claim the Federal Tax credit.
     
  20. forte88

    forte88 Member

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    I'll try.. but I doubt that will be affordable. They will undoubtedly give me a jacked interest rate. I would have rather just paid the residual on my 2010 lease that was expiring and financed the residual myself. The payment would have been a little less than my current lease payment. I was just counting on that 2500.00 to make up the difference. They really friggin hosed me. I'm sure my 2010 Prius is gone by now.. it was a sweet one.