From Toyota.com - HYBRID VEHICLE TAX CREDIT HYBRID VEHICLE TAX CREDITIndividual purchasers of a Toyota or Lexus hybrid vehicle may be able to take advantage of the new federal hybrid vehicle tax credit. Depending upon the hybrid vehicle purchased, the hybrid vehicle tax credit is estimated to range from $2,200 to $3,150. However, because the Internal Revenue Service has not yet provided specific guidance on the hybrid credit or confirmation of any specific amount of credit, there are no assurances any purchasers will be able to take advantage of any specific amount of the credit, from zero credit up to the above estimate. To qualify for the potential hybrid tax credit: 1. The Hybrid vehicle must be new. Used vehicles will not qualify. 2. The Hybrid vehicle must be purchased. Leased vehicles will not allow the lessee to take advantage of the hybrid tax credit. 3. The purchaser must accept delivery of the Hybrid vehicle from the dealer on or after January 1, 2006. A Hybrid vehicle delivered before that date may qualify for the previously available $2,000 tax deduction, but will not qualify for the hybrid tax credit. However, a Hybrid vehicle delivered on or after January 1, 2006 will no longer qualify for the $2,000 tax deduction. 4. The hybrid tax credit amounts will begin to be reduced for deliveries later in 2006. The reductions may begin to apply as early as deliveries after either June 30, 2006 or September 30, 2006. 5. The purchaser must retain appropriate documentation showing the purchase of the vehicle and the date of the delivery of the vehicle. The benefit of the hybrid vehicle tax credit will also be substantially reduced or eliminated if the individual purchaser is subject to the federal alternative minimum tax. Individual purchasers and corporations who have business use of the Hybrid vehicle are subject to different tax laws that may also substantially reduce or eliminate the above benefits. This summary does not constitute tax advice. All persons considering the use of this important new hybrid vehicle tax credit should consult with their own tax advisors to determine the specific amount of benefit, if any, that they may be able to claim on their federal income tax returns. Your tax advisor may also have further information on the many state and local tax incentives that may be available to Hybrid vehicle owners. The above summary is based on the federal income tax law in effect in Fall, 2005, and may be changed, without notice, by later changes to the tax law or further action by the Internal Revenue Service. ===========================================================================
Yep.....rather conservative. Based upon mentioning June 30th, it appears as if they don't want anyone to think that there's no chance the 60k number will be reached in Q1.
Wow! That's big. My neighbor has my Katamari Damacy disc, I'm playing the sequel right now, We "Heart" Katamari. Get it if you haven't yet! My buddy mentioned something about "Eternal" or something like that on his moon? His is about as big as yours. The sequel is great. It's like Twix, it's just like the first one, only more. Is that good? Well, did you like the first one? Nate
Actually, a June 30th cutoff would be the absolute earliest the tax credit would be reduced. The way the law reads, the credit is not reduced until the end of the quarter after the quarter in which the 60,000th hybrid is sold. So the June 30 date implies 60K Prii sold in the 1st quarter alone.
Its not 60,000 Prii. Its 60,000 hybrid vehicles per manufacturer. Toyota has other hybrid models that counts toward the 60,000 figure.
Toyota currently sells about 10,000 Prii, 3000 HyHis, and 3000 400h's per month. I predict Toyota will hit the 60,000 mark sometime very early in the second quarter, and the credit will be the full amount until the end of September. Unless a HUGE number of folks are holding cars from this year at the dealer until January, Toyota likely won't bump up production until the mark is reached. Anyone else have better sales/ production numbers? We should know mid-February when the 60,000 mark will be reached. January's numbers will be artificially high, then February's numbers should reflect full production, and March should match February. Nate
Well, it would be 60k hybrids as jtmhog pointed out. But, when I said they were being conservative by mentioning June 30th, what I meant was they don't want customers assuming they'll get the full credit if they buy in the second quarter. IOW, they don't want the (rather unpleasant) situation of having irate customers who buy in April writing nasty letters or, God forbid, taking further action, based upon current production numbers or any representations Toyota made about future production.
Buyers WILL get the full credit if they buy in the second quarter. It's the third quarter that is in question. Nate
4. The hybrid tax credit amounts will begin to be reduced for deliveries later in 2006. The reductions may begin to apply as early as deliveries after either June 30, 2006 or September 30, 2006. The phaseout of the tax credit for any hybrid manufacture cannot occur until after June 30, 2006 at the earliest and quite possibly won't begin until after September 30, 2006.
Yeah, that's correct.........amazing I could completely misinterpret that sentence considering it's in bold print. Geez!
