Time Running Out on Tax Credits for Toyota Hybrids TORRANCE, Calif. — Consumers who stall until September to buy a Toyota gas-electric hybrid will get only half the current federal tax credit because demand for the popular vehicles has surpassed the federal government's 60,000-unit-per-manufacturer cap. Because of that, the tax credit on the Prius, which got the biggest break, will drop substantially from $3,150 to $1,575 in October and disappear a year later. Last year's energy bill says that an automaker's additional hybrid sales qualify for half the original tax break for six months, then 25 percent for six months before phasing out entirely. President Bush asked Congress to lift the sales cap in the spring, but nothing has been done thus far. What this means to you: If you're going to buy a Toyota hybrid, better hustle if you want a break on your personal income tax. Source: Edmunds.com
The 60,000 mark was reached in May or June, but the full tax credit goes until the end of the calendar quarter AFTER the 60,000 sales, so it's in effect for new Toyota Hybrids purchased up through September 30, 2006 - that means the you take possession of the car before October 1, 2006.
