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Another thread on the tax break??

Discussion in 'Gen 2 Prius Main Forum' started by Grotto, Sep 21, 2006.

  1. Grotto

    Grotto New Member

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    I have read that the tax break for the 2007 models is not on the books yet because Toyota has not given the information to the IRS yet. Does anyone have any information on when Toyota plans to get things set up with the government?

    I am trying to get another 2006 before the end of this month...or wait for a 2007 if they get the tax stuff scheduled. It is crunch time for the 06...and I am getting nervous.
     
    #1 Grotto, Sep 21, 2006
  2. cmympg

    cmympg Who knows? Who cares?

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    IRS has released the credit amounts.

    Quoted from the IRS Newswire number IR-2006-145:

    Vehicles purchased before Oct. 1, 2006 qualify for the full credit. For Toyota hybrid vehicles bought on or after October 1, 2006, and on or before March 31, 2007, the credit is 50 percent of the otherwise allowable credit amount. Taxpayers buying vehicles on or after April 1, 2007, and on or before September 30, 2007, can only get 25 percent of the credit.

    Here are the credit amounts for Oct. 1, 2006 – March 31, 2007:

    2005 Prius — $1,575
    2006 Prius — $1,575
    2006 Highlander 4WD Hybrid — $1,300
    2006 Highlander 2WD Hybrid — $1,300
    2006 Lexus RX400h 2WD — $1,100
    2006 Lexus RX400h 4WD — $1,100
    2007 Camry Hybrid — $1,300
    2007 Lexus GS 450h — $775
    Here are the credit amounts for April 1, 2007 – September 30, 2007:

    2005 Prius — $787.50
    2006 Prius — $787.50
    2006 Highlander 4WD Hybrid — $650
    2006 Highlander 2WD Hybrid — $650
    2006 Lexus RX400h 2WD — $550
    2006 Lexus RX400h 4WD — $550
    2007 Camry Hybrid — $650
    2007 Lexus GS 450h — $387.50
    Beginning October 1, 2007, taxpayers who buy a Toyota hybrid cannot claim the related tax credit.


    Here's a link to the IRS notice.
    http://www.irs.gov/pub/irs-drop/n-06-78.pdf

    Hope this helps.
     
    #2 cmympg, Sep 21, 2006
  3. Grotto

    Grotto New Member

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    Yeah...I have read the amounts and dates for the credit. Thanks for posting it. But...I have read that the 2007's are still up in the air because Toyota has yet to give the IRS information on the 2007. They have given the info on the Camry...because they are already selling Camry's. They have not started selling 07 Prius'...so they have not given the info.

    My question is in regards to whether or not we will be able to get the tax break from buying the 2007 Prius...and if anyone has any idea when.
     
    #3 Grotto, Sep 21, 2006
  4. quagmire0

    quagmire0 New Member

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    As of right now, assume that you are getting no rebate on the 2007 Prius. You may be pleasantly surprised, but you also may be disappointed. My guess is that with the drop in gas prices, something like the tax rebate will not float. But then again, I'm no expert. ;)

    I'm sure as soon as someone sniffs that the 2007 rebate has been set, there will be 8 posts on the board announcing it. So stay tuned! :lol:
     
    #4 quagmire0, Sep 21, 2006
  5. Grotto

    Grotto New Member

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    In December 2005 I bought the 2006 Prius...and got the tax credit for 2005. My thinking now is that if I can not get the credit or rebate by buying a 2007 this year...then I will just get another 2006 to take advantage of the credit. I have seen the specs for the 2007's...and the only real differences are a nice touring package on the 2007...and the back-up cams being standard on the 2007's. Most everything else is the same, as far as I can tell. And even the MSRP is only about $500 more on the new models.

    However...if I can still get the tax break with the 2007...then I will just get a 2007.

    Too many possibilities here!! lol
     
    #5 Grotto, Sep 21, 2006
  6. highroute

    highroute New Member

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    <div class='quotetop'>QUOTE(Grotto @ Sep 21 2006, 06:02 AM) [snapback]322754[/snapback]</div>
    Keep in mind that the 2006 Prius wasn't certified for the federal income tax credit until somewhere around April 2006. I bought my Prius in early March 2006 without having absolute certainty that it would qualify; I knew only that the 2005 Prius qualified. Many others bought their 2006 Priuses under the same circumstances.

    Are you afraid that the 2007 Prius will have such poor mpg efficiency and such poor emissions results that it won't qualify? Or that it will be reclassified as a smaller car and therefore not qualify for the mid-size-car credit it got in 2005 and 2006? Come on.

    Just keep in mind that under the current law (no further action needed from Congress) purchases made from October 1, 2006 through March 31, 2007 will qualify for 50% of the stated credit for the model year and that purchases made from April 1, 2007 through September 30, 2007 will qualify for 25% of the stated credit for the model year.
     
    #6 highroute, Sep 21, 2006
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