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2005 tax credit?

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by nvdv, Jan 5, 2006.

  1. nvdv

    nvdv New Member

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    If i buy a new 05 in Jan will I get the tax credit?

    Thanks
     
  2. GreenMachine

    GreenMachine New Member

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    Location:
    Vermont, USA
    Vehicle:
    2010 Prius
    Model:
    III
    New '05s are eligable for the tax credit if you are. Take a look at this the Prius FAQ for a good expaination of this complicated issue.

    http://en.wikibooks.org/wiki/Toyota_Prius_FAQ
     
  3. jayeliot

    jayeliot New Member

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    Our friend is a CPA and I asked her about those who may be taxed using the AMT calculations. She was not sure but she thinks that the energy credit could be treated the same as other credits when calculating the final taxes owed.

    1. calculate your taxes using regular deductions - home mortgage, etc.
    2. calculate using the AMT deduction but remove home mortgage, real estate taxes etc.
    3. pay the higher of the two.

    4. then apply the credit - 3,150 for the Prius.

    Again, she was not sure, but this is how other allowable credits are used.
     
  4. Kiloran

    Kiloran New Member

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    In a word, "wrong".
    The $3150 credit will NOT reduce your taxes below your AMT.
    (I can cite numerous references if you wish, including the text of the law.)
     
  5. nvdv

    nvdv New Member

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    Thanks for your replies. We're confused by the AMT aspect too. if we don't get the credit it may be worth buying a used 05.
     
  6. Kiloran

    Kiloran New Member

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    You're welcome.
    Be aware that a used prius is not eligible for most incentive programs.
     
  7. Kiloran

    Kiloran New Member

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    Could a moderator move this thread to a more appropriate forum?