Tax Credt on 08' model

Here's a link to the IRS' stand on Hybrid Vehicle and Alternative Fuel incentives: Infernal Revenue Service Link
No, Prius 2008 model year is not there.

 

We picked up our 2008 Prius September 28. My dealer assured me the vehicle would qualify for the Tax Credit that expired September 30.

Two weeks before we picked up the Prius I received an e-mail response from the IRS (I just found [again] the e-mail today). As of that day (September 13) they could not tell me when a possible review of the Hybrid Tax Credit would take place for a 2008 Toyota Prius - nor could they state if the amount of the credit would remain the same. They told me to continue to monitor the IRS website for updated information.

I e-mailed our Dealer last Tuesday for an update. He didn't have any updated information on the 2008 Model Tax Credit - but he said Toyota had made the request and was waiting for it to be approved by the IRS.

If I get more information I'll be sure to post it.

 

<div class='quotetop'>QUOTE(Bowenj405 @ Oct 10 2007, 04:41 PM) [snapback]523846[/snapback]</div>

Bowenj405,

Please do. I picked up my '08 Prii on Sept 27th and would appreciate your posting the IRS update when you receive it. I believe the tax credit will be for $787.50.

 

According to the IRS Website the 2008 Toyota Prius (purchased before October 1) is eligible for the Tax Credit.

(http://www.irs.gov/newsroom/article/0,,id=175518,00.html)

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.

 

So what do I need to do? Is there a form to get?
Also, what about Colorado tax credit?

 

Thanks for that, my dealer also assured me that the tax credit would be available for our 08 but I was worried as I didn't find the 08 listed on the IRS website until the reference you posted above.

 

Tax credit on our '07 prius was useless. Amount was not what dealer claimed and when we went to use the credit, we get nothing. My wife works at a tax prep agency. I'm sure some people get it, but for us it was worthless and misleading.

 

Tax Credit

I just wonder why tax credits for Toyota Hybrids had gone down?? I am counting on Toyota and hope that they can once again add the Prius bought after Oct. 1 in the list.

Uncle Sam, if you are listening...please...please...


BTW, this is my first post here.

 

Tax Credits (general)

From what I read, the original tax credit was pro-rated after a certain number of cars were sold. I have listed some websites I occassionally check for news on this below. This mostly regards tax & benefits within U.S.A.

From my own experience, I received the full tax credit of $3150 for my 2005 Prius which I bought back in January of 2005. Some of my friends received roughly half of that when they bought the 2007 model in 2006. (after much debate and test driving of my 2005 ) Also look for other Toyota Rebates and company incentives. I think my cousin was supposed to receive something for her 2006 Prius from Boeing. I'll have to ask.

There were no additional forms except when you fill your standard 1040 federal income tax, there was/is a form about big ticket purchases like cars. I used Intuit's TurboTax which came up about purchasing a vehicle - when I said "yes" and put down the 2005 prius and the purchase date (save your receipts). Turbotax even calculated it and my actual refund was exactly as Turbotax predicted with my tax credit. It was great!

The car has so far proved invaluable as a commuter car. Drives and handles wonderfully. Insurance is okay at around $1100 a year for full coverage with State Farm. I get to ride in the HOV (High Occupancy Vehicle minumum 2 people) lane by myself. I get discounts at the tolls. And if NYC passes the congestion tax, it may even be slated for a discount (although I usually avoid driving in NYC during weekdays).

Summary: Do not limit your thinking to just a federal tax credit - Big Brother sometimes has other interests. Rebates help to some degree as well - although I have to admit, getting the "tax I paid back" plus a little to the car was a really great feeling. So do not forget to look for "vehicle purchase" on your 1040. Also look out for state/local tax incentives on hybrid cars as well. I hear Conneticut cut a special deal - reduced/no sales tax on "clean/hybrid" cars (see link)

http://www.fueleconomy.gov/feg/tax_hybrid.shtml - General questions on Fed Tax programs for Hybrid vehicles
http://www.carsdirect.com/toyota/prius/rebates - Rebates on Hybrid Vehicles.
http://www.cfenv.org/air/cars/Q_A.htm - Conneticut sales tax Q&A for Hybrid vehicles.
http://www.google.com/search?hl=en&q=hybrid+local+tax+incentive - Google search for some local tax incentive programs.
http://www.irs.gov/newsroom/article/0,,id=157557,00.html - The re-hashed IRS website.

Hope this helps!

-Calvin

 

Assuming no change in the 2007 tax forms from 2006, there is no IRS rebate form. All you need to do is tell your tax preparer that you bought a hybrid and when it was purchased (not ordered). You have to have posession of the car by September 30. There is a line on the tax form to adjust your taxes. That's all there is to it.

 

Last year I recall we had to wait until Jan 30th 2007 for the IRS to post the updated 8910 form for hybrid tax credits from 2006. Some software programs, such as TurboTax, didn't get around to updating their software to integrate the newly released IRS form for ~2-4 weeks after that.

The thread regarding that can be read at:

http://priuschat.com/forums/showthread.php?p=358680#post358680

 

I was quite disappointed to read this after JUST returing from a test drive. Fortunately Florida's tax break appears to be in play so that's good:

Hybrid Sales Tax Exemption (bill): SB 438 would exempt new hybrid purchases from sales tax. The sales tax that is eligible for refund shall be computed on the sales price of the alternative motor vehicle up to a maximum sales price of $15,000. Introduced 03/06/07, referred to Communications and Public Utilities, Environmental Preservation and Conservation; Finance and Tax, and General Government Appropriations Committees.
Hybrid Tax Exemptions (bill): SB 2576 exempts transactions involving the sale or lease of hybrid vehicles and vehicles from the tax on sales, rental, use, consumption, storage, or distribution imposed by state law. Introduced 3/02/07.
Hybrid Sales Tax Refund (bill): As introduced, HB 7123 would establish the Energy Efficient Motor Vehicle Sales Tax Refund Program to provide refund of the sales tax paid on the lesser of $15,000 or the purchase price of a new alternative motor vehicle, including a qualified new hybrid motor vehicle. The refund program would expire 07/01/10. This provision was removed before the bill’s final passage.
http://go.ucsusa.org/hybridcenter/incentives.cfm#FL

 

Re: Tax Credt on 08' model

Hey, Calvin,

Are you sure you didn't mis-type your model year or year of purchase in your post, because for all of 2005 the original tax DEDUCTION of $2,000 was still in force? I also have a 2005 that I put on the road July 14th, 2005 & I had to use the $2,000 DEDUCTION which only netted the average owner a $400 to $600 savings (depend'g on your actual tax bracket). I could have made out a lot better if I had just waited 6 more months because start'g on Jan.1st, 2006 the $3,150 tax CREDIT took effect, but who knew in early to mid 2005 that the hybrid tax benefit (due to reduce from $2,000 for 2005 to only $500 for 2006) would be superceded IN 2006 by a much better law/benefit.

For any NEW Prius put on the road in 2005 (or before) you took $2,000 off of your adjusted gross income, then went to your tax tables to figure your tax owed. You would have filed for this by April 15, 2006, but that doesn't mean that you could claim the 2006 $3,150 tax CREDIT (amount you were allowed to reduce your tax owed bill by). The $3,150 tax CREDIT took effect for any NEW Prius [even a leftover NEW 2005 model (if there even were any)] put on the road start'g Jan.1st,2006 & ending Sept.30th,2006 [after which the CREDIT was cut in half to $1,575 for Oct.1st, 2006 thru March 31, 2007, & then reduced again to $787.50 for April 1st, 2007 thru Oct 31, 2007 (to disappear altogether after that date)].

So, Calvin, if it really is a 2005 model that you put on the road in 2005 and claimed the more beneficial 2006 tax CREDIT for, has the IRS been knock'g at your door yet? Can you answer me (but don't answer your door) to clear up the confusion? If it was indeed a 2005 (leftover?) bought in January of 2006 [NOT January of 2005 (as you posted)] then you're safe in claim'g the $3,150 tax CREDIT.

Ken (in Bolton,Ct)

 

Re: Tax Credt on 08' model

Janice i sincerely hope that you are not using your real email name as your primary email. Comcast does allow multiple emails so i hope you use another because publishing your email online like that will have every spambot in the world after you in no time.