How much is the tax credit for the 2007 Camry hybrid

Someone posted a source saying $1950, revised on April 12th. And apparently that'll be reduced to half, $975, after June 30th. So you'd have to attempt to acquire the car within its first month of release to even get that.

 

Looks like $1950 is correct for the Camry.

http://www.aceee.org/transportation/taxcredits06.pdf

I just rechecked this site and they updated it (April 12) with the latest numbers. The previous update was from Feb 23. At that time the Camry was listed at $2350 (at 43mpg city). So it looks like those 3mpg just cost us all $400. Nice! :angry:

100% of the credit is good through the end of September though. Toyota would have had to sold 60k hybrids in the first calendar quarter to have it expire in June. They didn't.

The following page from Toyota illustrates the phase-out period:
http://www.toyota.com/images/vehicles/2006...xcreds_3_06.pdf

 

<div class='quotetop'>QUOTE(BayouBulldog @ Apr 17 2006, 09:01 PM) [snapback]241265[/snapback]</div>

Gary, I might have great news for you...

Although, as Toyota says, you should always check with your tax advisor, I don't think you need anything other than the original bill of sale for the federal credit.

Now to the great news...according to:
http://www.whybuyhybrid.com/hybrid-buying-...s.htm#Louisiana
you should be able to receive a credit in the amount of 20% of the conversion cost on your Prius back from the state of Louisiana. $2000 x 20% = $400.

Some people aren't aware of the state tax benefits.

You will most likely need:
http://www.toyota.com/images/vehicles/2006...cation_2006.pdf
and/or
http://www.toyota.com/images/vehicles/2006...gement_2006.pdf
to complete this paperwork and prove that it "cost" you over $2000 extra to purchase a hybrid instead of a regular car.

 

You should try living in Colorado. The total tax credit for buying a 2006 is $3,285 State + $3,150 Federal = $6,435 in cash. I can't believe I haven't bought a second one yet...

Nate

 

<div class='quotetop'>QUOTE(naterprius @ Apr 18 2006, 01:08 PM) [snapback]241585[/snapback]</div>

Wow, you could buy a new Prius for $17426 (including sales tax and tax credits), then sell it in another state for MSRP - $3500 ($18800) and make a $1400 profit while the buyer still gets the car for $600 less than he would buying it in his state (after tax is factored in).

Math: MSRP is $22300, assuming tax is 7%, you pay $23861, then deduct $6435 so you really just pay $17426. If you sold it for $18800 plus tax ($20116), your profit is $18800 - $17426. The person buying it pays $20116 instead of $20711 ($23861 - $3150) so he saves around $600.

 

Even more interesting, I could sell it instate to someone who doesn't have income. Without income, you get no credit. I know there is at least one person on this board who has no income and is losing out on the credits.

Nate

 

Official word from the IRS came Tuesday:

http://www.irs.gov/newsroom/article/0,,id=156381,00.html

 

<div class='quotetop'>QUOTE(BayouBulldog @ Apr 17 2006, 09:39 AM) [snapback]240880[/snapback]</div>

Just posted.

April 26, 2006 (SmartPros) -- The IRS announced that the 2007 Toyota Camry Hybrid ...qualifies for a hybrid tax credit of $2,600.
http://accounting.smartpros.com/x52767.xm