Hybrid drivers face scramble for tax credits,carpool lane pa

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by inventor00, Aug 3, 2005.

  1. inventor00

    inventor00 Active Member

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    Hybrid drivers face scramble for tax credits, carpool lane passes,
    Aug.3, 2005 San Jose Mercury News

    By Paul Rogers
    Mercury News

    Drivers of hybrid cars hoping for big tax credits and a free pass to Bay Area carpool lanes have been given a detour by Congress.

    In the massive energy bill passed last week, Congress approved a lucrative tax credit -- worth about $3,000 for buyers of Toyota Priuses, for example -- but limited it to 60,000 cars per manufacturer over the next four years.

    Not long after, in the huge highway bill, Congress delayed California's attempt to allow hybrid drivers into the carpool lanes by up to six months by requiring the U.S. EPA to come up with new rules. Even then, the California DMV will issue only 75,000 carpool stickers to hybrid buyers.

    Bottom line: Come Jan. 1, 2006 when the tax credits and carpool rules are expected to go into effect, the race will be on. Motorists who act quickly will get a tax credit and a carpool pass. Others won't.
    http://www.mercurynews.com/mld/mercurynews...th/12295480.htm
     
    #1 inventor00, Aug 3, 2005
  2. clubmedic

    clubmedic New Member

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    So fine, hybrid sales will jump next year... but those thinking about buying now will wait. So sales this year will slump, making the 1st quarter numbers next year look even better.

    How about encouraging people to buy NOW by activating the tax credits for 2005. (coincidently giving me a tax credit because I bought THIS year <g>)
     
    #2 clubmedic, Aug 3, 2005
  3. A2Prius

    A2Prius New Member

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    Re: 2005 Federal Tax Bill hybrid tax credit

    I just spoke about this with an I.R.S. rep. Given the fact that the legislation was just signed into law, there's nothing in the I.R.S. database concerning the hybrid tax credit. The rep advised me to periodically check their website for information. I guess this means that folks with 2005 Priuses on order (like me) have to flip a coin to decide whether to go for the existing tax deduction, or wait for the details concerning the tax credit.
     
    #3 A2Prius, Aug 9, 2005
  4. AnOldHouse

    AnOldHouse Member

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    Re: 2005 Federal Tax Bill hybrid tax credit

    The details are already quite clear. Provided that the 2006 Prius achieves at least the 60 city EPA* as it has for the past 2 years, it will be eligible for a full $2,750 tax credit for purchases made within at least the first 6 months of 2006.

    The full tax credit *may* be available for purchases within the first 9 months, but certainly no more than that based on Toyota's current and estimated production volumes. After the full tax credit expires, it drops to 50% of full for 6 months, then 25% for another 6 months.

    *If the city EPA estimate drops by only 1, the tax credit will be $2,450.
     
    #4 AnOldHouse, Aug 12, 2005
  5. priusham

    priusham New Member

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    Since the Prius is still hard to get and sells for sticker virtually everwhere but California, a tax credit to "encourage sales" is rather silly.

    I'll say it first... the same greedy dealers who were selling for sticker + a year ago, are licking their chops at the thought of getting a big chunk of that tax credit in 2006.

    I can hear 'em now, "Sure, we added leather, a LoJack, and shine guard! We're only asking an additional $2000, but you're getting that back AND MORE in a tax credit! It's like free options PLUS CASH in your pocket!"
     
    #5 priusham, Aug 12, 2005
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