How long will Prime be eligible for tax credit?

Toyota has around 155,000 credits left, before the phaseout is triggered. Then it's a 50% reduction for 2 quarters. Then again (down to 25%) for another 2.

So, sometime within this generation, the credits will be used up.

GM, Nissan, and Tesla's will all be gone around then too.

In other words, within the next few years the entire market will shift somehow.

 

If Toyota does sell their projected 30k a year, and doesn't introduce another plug in, the federal incentive will last about 5 years.

 

I am trying to recall if the legislation has a time limit.
But basically, there is nothing to worry about, at this time.
I personally predict the incentive will be extended, if a problem like that arises.

 

No time limit for this credit.

 

That 30,000 is only first year's plan.

The goal is to sell 1,000,000 worldwide, which means an increase in subsequent years.

 

But 30k is still an if at this point.

 

If you have lots of credits this year, and don't have enough room, is this credit able to be claimed in '16 and carried forward to '17?

 

No I don't think so. The Federal Credit must be claimed the year of purchase and there is no carry-over.
Some state incentives may allow carry-over.

 

One of the Prime's advantages is that the tax credit is only 4500.

If they start selling like crazy and they blow through 150,000 units in a few years, then they will be selling well enough to withstand the loss of the federal kickbacks....at least for the PPlus.
It would be a heavier lift with 7500 bucks.

 

Given the election results, will the tax credit even exist in 2017?

 

well we have a thread on this that was sent to Fred's House of Politics.

I assume Plug-in America will work nights and weekends to ensure 2017 continuation. But that would be the place to make your tax deductible 2016 donation. That will get you in their mailing list and you will get the latest thinking. I would not expect immediate cancellation, but I agree. all bets are off until we hear more.

 

It takes a lot of work to repeal a law that's already on the books, and there's no real up-side for dot.gov to repeal the federal kick-backs.
PHEV (and EV) drivers are probably regular voters.

The tax breaks will sunset on their own.
Right now?
DC has other fish to fry.

 

So, if we buy now (< Dec. 31, 2016), we will pay the full price and most probably will qualify for the $4507 tax credit for April 2017.

or

wait into 2017, find a Prime for possibly a better price when inventories build, and gamble that the 2017 administration doesn't s***-kick the existing incentives to the curb (like they want to/will do with the 30% solar credits), and get maybe $1500 to $2000 off the car if we deal it right. Or if COSTCO pricing comes into play, which will be, no doubt, a minimal discount.

I am strongly mulling this dilemma over in my head. Meanwhile, my 2010 Prius is getting less valuable every day as a trade or private sale.

 

I can't see how they could cancel the credit for tax year 2017. To do so, they'd have to cancel it before January 1st and Obama would have to sign it, or they'd have to retroactively cancel a tax credit, which is probably not even allowed, but certainly frowned upon.

 

I am also not currently expecting a change for 2017 re: plug-in credit, but with either Hillary or Trump we would definitely be looking at other tax law changes potentially proposed for upcoming 2017 TAX year.

 

*** What did you end up doing?

 

I'm waiting. No dealer in the greater Chicago area EVER wants to stock the thing. This is echoed by other members here that also live in Chi-land. We all want one, but unless any of us travel to either coast and get super lucky, it ain't happening anytime soon.

 

I was going to wait until Spring, 2017 for a new purchase. Had a Gen 2 with 165k on it, but when the president elect nominated the head of an oil company as his secretary of state and the former governor for secretary of energy who once campaigned for president claiming he would do away with that department, I hedged my bets, bit the bullet, and made the purchase now. Two weeks and 1300 miles in with my new Premium, I'm happy as a clam that I took the plunge.