I was thinking of getting a 2006 sometime in the summer/fall of 2006 and I am wondering if the 60,000 vehicle limit will be reach by then. I would like to know the opinion of this group to see when that will end. Thanks!
Smart money is betting that the 60,000 number for Toyota will occur early in the 2nd quarter. (If I were Toyota I would find someway to make this happen or delay it to Q3 if possible.) If the 2nd quarter number is good then your purchase in the 3rd quarter would still be elegible for the tax credit.
Based on past numbers and projections, I'd have to say it's almost a certainty the 60k number will not occur any later than Q2.
Given that the smart money is betting that the 60000th Toyota Hybrid will be sold in Q2, then the tax credit phase out, by calendar quarter, would be as follows: 2006 Q2 100% 2006 Q3 100% 2006 Q4 50% 2007 Q1 50% 2007 Q2 50% 2007 Q3 25% 2007 Q4 25% That allows the full credit through the end of September. If the 60000th is not sold until Q3 for some reason, then the full credit extends to end of 2006, and all the other percentages move forward another quarter. Looks like even if you buy a 2007 Prius at the end of 2006 or early 2007, you would still get 50% or a nice $1500 credit or so.
FWIW, as you do your planning you might want to check how close you are to paying the Alternative Minimum Tax (AMT). In my case, the credit can't reduce my taxes more than $900 or so in any event, so the "50% credit" is worth exactly as much to me as the 100% credit. Which is a shame, because I was so looking forward to an excuse to buy sooner rather than later...
