1. Attachments are working again! Check out this thread for more details and to report any other bugs.

Hybrid, SUV tax credits at odds

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by jkash, Aug 11, 2004.

  1. jkash

    jkash Member

    Joined:
    Nov 26, 2003
    889
    18
    0
    Location:
    West Hills, CA
    Vehicle:
    2004 Prius
    Model:
    N/A
    Hybrid, SUV tax credits at odds

    SAN FRANCISCO (AFX) -- Environmentalists and customers are clamoring, automakers are reacting and, of course, presidential candidates are doing their best to position themselves accordingly on consumer tax breaks for vehicles.

    But regardless of all the hybrid hoopla, the U.S. government would still prefer that drivers climb behind the wheel of a fuel-quaffing SUV, given the disparate tax incentives.

    The current policy allows small business owners to deduct up to $100,000 of the purchase price of trucks that weigh at least 6,000 pounds, more than twice the weight of a Prius. Originally intended to help farmers and small businesses to buy work and delivery trucks, the rule is easily skirted by consumers as a means of discounting expensive SUVs.

    Read entire article by clicking this link.

    The SUV tax deduction makes our $1500 seem pretty paltry.
    Jeff
     
    #1 jkash, Aug 11, 2004
  2. hbolter

    hbolter New Member

    Joined:
    Aug 6, 2004
    33
    0
    0
    Location:
    San Diego, CA
    Unfortunate, but not surprising...

    While this administration didn't invent this particular tax loophole, it did enlarge it, according to the story. It's hardly surprising, given our current President and V-P and their ties to the oil industry. Then there is Cheney's demonstrated contempt for conservation--I recall seeing a TV news clip of a speech of his a couple of years ago. If I recall correctly, he referred to conservation as being good for nothing other than "personal virtue". But, beyond his words, his tone of voice was dripping with contempt. Given this atmosphere, we're probably fortunate that there is any tax deduction for hybrid car purchase!

    OK, end of rant. Sorry about getting political there, but this SUV subsidy (which is what it works out to be) really ticks me off...
     
    #2 hbolter, Aug 11, 2004
  3. outoftown

    outoftown Member

    Joined:
    Aug 11, 2004
    125
    66
    5
    Location:
    Cary, NC
    Vehicle:
    2017 Prius Prime
    Model:
    Prime Advanced
    $25,000, not $100,000

    Toyotas do qualify for the SUV rebate also. Buy a Sequoia to take advantage. However the tax liability deduction is now down from $100,000 mentioned in the article to $25,000.


    Bill
    '01 Aqua Ice
    '04 Black #9 "HIGHBRED"
    '04 White #9
     
    #3 outoftown, Aug 11, 2004
  4. KMO

    KMO Senior Member

    Joined:
    Apr 15, 2004
    1,407
    338
    0
    Location:
    Finland
    Vehicle:
    2023 Prius Prime
    Model:
    N/A
    Mind you, such heavy vehicles are prohibited from many roads. If people are getting a tax break just because they're overweight, the powers-that-be should be making an effort to ensure those prohibitions are upheld on the same vehicles.
     
    #4 KMO, Aug 12, 2004
  5. bruceha_2000

    bruceha_2000 Senior Member

    Joined:
    Jan 2, 2004
    3,054
    301
    19
    Location:
    Northwest VT
    Vehicle:
    2018 Prius Prime
    Model:
    Prime Advanced
    Frankly, I don't know why this exists at all. As a business, can't they already subtract all operating costs from gross income and depreciate the purchase over a relatively short number of years? Sounds like a double tax break, even for those that are using it legitimately.
     
    #5 bruceha_2000, Aug 12, 2004
  6. jkash

    jkash Member

    Joined:
    Nov 26, 2003
    889
    18
    0
    Location:
    West Hills, CA
    Vehicle:
    2004 Prius
    Model:
    N/A
    Another article on this topic was posted by CBS MarketWatch today.

    Tax breaks skewed for hybrids, SUVs
    Deductions for fuel-efficient cars set to phase out by 2007

    SAN FRANCISCO (CBS.MW) -- Environmentalists and customers are clamoring, automakers are reacting and, of course, presidential candidates are doing their best to position themselves accordingly on consumer tax breaks for vehicles.

    But regardless of all the hybrid hoopla, the U.S. government would still prefer that drivers climb behind the wheel of a fuel-quaffing SUV, given the disparate tax incentives.

    Read entire article by clicking this link.

    Jeff
     
    #6 jkash, Aug 12, 2004
  7. LungCookie

    LungCookie New Member

    Joined:
    May 20, 2004
    67
    0
    0
    Location:
    Minnesota
    Time to start making some citizens' arrests! (Er, citizens' tickets?)
     
    #7 LungCookie, Aug 13, 2004
(You must log in or sign up to post here.)