Plug-in Prius tax credit

This link?

Plug-In Electric Vehicle Credit (IRC 30 and IRC 30D)

(I'm pretty drunk right now (Party at work ) so I'm not going to even try to give a proper answer, I'm just going to post a link)

But if Toyota expects to sell 16,000 plug-ins the first year, it's going to be a while until the credit expires. I vaguely recall people saying that the tax credit would be 2500... so that makes sense.

Wait, did I try to give a proper answer there? I... shouldn't think about this.

 

$3,000 - see this post:

http://priuschat.com/forums/toyota-...l-new-prius-plug-in-hybrid-3.html#post1311330

 

Yes, the IRS web page is a good source of tax info. Notice that Toyota is NOT listed. The manufacturer needs to build, test & sell the car before the IRS will certify the credit.

Now it's time to rain on your parade. I expect this will be a Misc. credit. If so, the availability will depend on other credits taken. AMT & child care credits were the most popular in denying the hybrid tax credit to Gen2 buyers.

 

Jim, would you explain that in 'IRS for dummies' language ?

OP: I agree, no rush to buy so far as the federal tax credit goes, but HOV stickers or other state incentives might be a different matter.

 

...I can advise the Gen-II hybrid tax refund $3250 (Prius) was hard to get the full amount, because in FORM 1040, you had to go into an IRS side-calc for AMT hybrid credit calc, reducing the allowable hybrid credit. It was not good. Later refund programs, C4C and EV credits, they changed it so you could take the full credit. We gotta hope he doesn't mean that.

 

I poked around the IRS website tonight. The plug in EV credit is reported on form 8910. This credit can't be carried forward. If you can't use it in the year you buy the car you lose it. Anyone buying a Prius in 2006-2008 should remember this form. The Cliffs Notes version is that this credit is reported on page 2 of Form 1040 (the tax return) just before the taxable income amount. It's a miscellaneous credit because it doesn't have its own line on the 1040. There is a line with a space for you to fill in "8910".

The IRS expects everyone to pay some amount of income tax. Those with "high" income & lots of deductions & credits can't reduce their tax liability below a certain point. They are subject to the Alternative Minimum Tax. Back then, the most common reason for not being able to claim the hybrid car tax credit was due to the child care tax credit being taken.

It looks like the plug in EV credit expires at the end of 2011 (IRC Section 30) but the EV credit (IRC Section 30D) does not.

 

Federal Tax Credits for Plug-in Hybrids Purchased in or after 2010 is another good source for EV & plug in hybrid tax credit information. This site does not list an expiration date for the law. If the plug in Prius qualifies under Section 30D then the credit will be in effect to some extent for a year after Toyota sells 200,000 vehicles.

 

From Internal Revenue Code 30D:

"For vehicles acquired after December 31, 2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500."

From everything I've read the Plug-In has a battery capacity of 5.2 kWh. So, looks like the tax credit for the Plug-In Prius will be $2,500 + $417 = $2,917. (If I read it right)

 

The 0.2 kilowatt hour in excess of 5 kilowatt hours rounds up to a full kilowatt hour? That sounds like an unexpectedly generous interpretation.

Updated: NM, I was tripped up by the wording. Here's the a version that's clearer, IMO: "The credit is equal to the sum of: (1) $2,500, plus (2) $417 for each kilowatt hour of traction battery capacity in excess of 4 kilowatt hours." http://www.irs.gov/irb/2009-26_IRB/ar07.html

 

$2,500 rebate for the first four kWh and then the $417 for each additional kWh. Or if you prefer the IRS way of stating it, $2,500 for the base credit, $417 for being at least 5kWh, and $417 for each kWh greater than 5kWh.
$2500 + $417 + $83 = $3000

 

I see no mention of prorating any fractional kilowatt hour, which may mean the credit is $2,917.

 

Everything at the IRS is written in gray--gotta love it. We'll just have to wait & see what the IRS certifies.

 

I hope you're wrong. $600,000,000 of tax credits for a car that can eek out 20 miles under all electric power...?

And it's not even built by an American company. Brilliant.

 

To conserve gas and reduce emission, does it matter where on earth the car is built?

For plugin hybrid, electric mile and power are half the story. I think incentives should be based on the composite MPGe and emission rating, not the capacity of the battery.

 

I don't understand the logic here!
Do you mean an American nameplate even when built in a foreign country (Canada, Mexico) and exported to the US or a foreign nameplate built right here in the US?

The most

 

No. But if we don't support American companies, only a few of us will be able to afford a gas conserving, emissions reducing automobile. The rest of us will be driving older, out of tune, emissions spewing cars, since that's all we can afford. Either that or all of our worldly possessions will be making clanking noises on the side of a donkey.

I mean an American nameplate built right here in the U.S. And that's something which doesn't exist.

________

And let's get back to the tax credits issue. We're going to subsidize the purchase of these new cars with over a half billion Dollars in tax credits? And will they even net either a reduction in fuel consumption over a conventional Prius?

Even here on PC, no one seems to know for sure.

Why is this car so important? Why does it merit a tax credit? Why can't we use the money for infrastructure, which benefits everyone and lasts for decades and decades?

Why is the government deferring policy which would provide increased environmental protection and considering reducing the powers of the EPA, yet subsidizing these cars under the guise of being green?

Oh, I know, because both benefit big business.

 

^^
The unsubsidized price will be interesting. What do you say of a Prius that is say ~ 10% more expensive as a plug-in, but averages 75 mpg ?

And while I agree with the argument that all things being equal we should all buy local, consider the benefit to the economy from spending less petro-dollars, and less military to guard and invade the petrol exporting countries. Do you have much doubt that the value of the these two costs is more than ~ $3000 over the lifetime of the car ? Heck, just the petrol savings is more.

Disclaimer: I love clean EV, am conflicted about dirty EV, and acknowledge that the EV question cannot be distilled down to a bullet point without inanity the result.

 

Money for infrastructure is not going to help reduce oil dependence. PC members are not confused about the difference in gasoline use of the Prius vs. other cars, Prius PHV vs. Prius.

Just about everything is subsidized, healthcare, foods, oil industry, etc... how do you pick and choose?. Well, I don't think tobacco is still being subsidized.

The Volt is American, built here in this country, would you want to stop the $7,500 subsidies for the Volt?

 

Well they also have $7500 for the Nissan Leaf as well as the Volt, which only goes an extra 27 miles for another $840,000,000 in tax credits. Right now the truth is there is no credit for the Prius Plug-In because it isn't for sale yet. And ask yourself, why, WHY did it take so friggin' long for an answer to the Toyota Prius. One of the biggest car companies in the world, IN THE WORLD, said they couldn't do it. The sad truth is, they didn't want to. They even ignored the rather, obvious truth, that Americans wanted a car like this. Now look at the true results of the success of the Prius Plug-In that isn't even for sale yet. Collaboration on building the next hybrid and electric vehicles with 2 American car companies. And hopefully this will prevent, even a little bit, hundreds of billions from pouring into third world demigod ruled countries via our gas tanks.