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Tax credit? Need a fact check

Discussion in 'Gen 3 Prius Main Forum' started by syncmacd, May 31, 2009.

  1. syncmacd

    syncmacd Waxing is Relaxing

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    Saw this article today...

    Toyota Prius 2010 Offers Hybrid Vehicle Tax Credit

    It says "You've probably seen the new Toyota Prius 2010 commercial, but you haven't, it is one of the best car ads I've ever seen. Prius is a third generation electric car which has several intelligent features. It also offers a good hybrid vehicle tax credit, but you may want to consult with your tax advisor or the IRS before using it this year.There is a $1,700 tax credit by the IRS for owning a hybrid or electric car. The credit is good only if the vehicle is purchased before October 1, 2009."

    I thought the tax credit was phased out after a car had sold well. So after 60,000 Prius were sold there was no more tax credit. However for a new car like the Ford Fusion the tax credit would still be in effect. Perhaps I have been mistaken? An additional $1700 credit would be a nice bonus!

    But the lack of a $1700 tax credit would not stop me from getting my 2010 Prius...
     
    #1 syncmacd, May 31, 2009
  2. TempusFugit

    TempusFugit Prius 06, IV 10 & four 11

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    When I bought my 2006 Prius I just missed getting a tax credit because over 60,000 had just been sold that year. I have never understood this - if the goverment wants people to change their buying habits to save energy, why in the world would they set a limit. The following comes from the US Tax Code:

    "The credit begins to phase out for vehicles once the manufacturer sells a total of 60,000 eligible hybrid and lean-burn vehicles starting from January 1, 2006. IRS will announce when a manufacturer exceeds this sales figure"

    I can't see where any tax credit for Toyota hybrids is now available, as it appears in the following table: I have one of the first 2010's so at least if they put on a limit this time I'll be ok. If I am wrong I would love to know about it, as it doesn't make sense to me:

    New Energy Tax Credit for Hybrids
     
    #2 TempusFugit, May 31, 2009
  3. stream

    stream Senior Member

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    No more hybrid tax credit for Prius, but there is a sales tax deduction for new car purchases--see IRS website for details.
     
    #3 stream, May 31, 2009
  4. syncmacd

    syncmacd Waxing is Relaxing

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    #4 syncmacd, May 31, 2009
  5. syncmacd

    syncmacd Waxing is Relaxing

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    Yeah, I don't see why they set a limit. Too bad Toyota didn't just rename the G3 the "Priusss" and say it's a new car type.
     
    #5 syncmacd, May 31, 2009
  6. jonasd

    jonasd New Member

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    That wouldn't help as the 60,000 limit is based on manufacturer not car model.
     
    #6 jonasd, May 31, 2009
  7. Rest

    Rest Active Member

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    That is because they don't want you to save energy as there really isn't an energy crisis. If consumers spend less on energy then these companies make less profit. Clearly if they wanted more people to conserve then they would encourage people to buy energy saving products, like hybrid vehicles. Since hybrid's cost more, it is counter productive to remove incentives like tax credits, to get consumers to pay more for these vehicles.
     
    #7 Rest, Jun 2, 2009
  8. miami

    miami New Member

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    I think some kind of 'clunker credit' is still being considered in Congress, though - IIRC it was about a $4000 tax credit (!) if you traded in a car ten or more years old.

    I'm planning to get a '10 Prius and dispose of a 1997 Acura RL, so I do want to see what happens with this - Anyone know where this proposal stands in the Congressional process? (I wonder too if this credit might be limited to those buying an American-manufactured car.)
     
    #8 miami, Jun 2, 2009
  9. Blauer Glimmer

    Blauer Glimmer Active Member

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    See this thread: http://priuschat.com/forums/2010-toyota-prius/60156-cash-clunkers.html
     
    #9 Blauer Glimmer, Jun 2, 2009
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