http://articles.moneycentral.msn.com/Taxes...ithANewCar.aspx Toyota hybrid vehicle fans, circle Sept. 30 in red on your calendars. That's the day you must drive one of these fuel-efficient autos off a Toyota lot or give up half of the new tax break created to reward energy-conscious motorists. Thanks to the Energy Policy Act of 2005, drivers who trade their gasoline-only autos for cleaner-running hybrid vehicles now get a tax credit instead of a tax deduction. That's a welcome change, since a credit produces dollar-for-dollar tax savings.
I sold a few Prius' this past weekend with consumers that had this in mind, not the HOV lane access craze.
Same old song from Washington- discontinue the tax break on the most fuel efficient, best selling hybrid, but let GM and Ford continue with a break on their mediocre hybrid offering, let GM,Ford avoid fleet CAFE penalties by manipulating the Flexfuel credit loophole, and let GM and Ford continue to enjoy the tax credit to business owners who buy oversized trucks/SUVs! USA! USA! USA!
<_< QUOTE: "Thanks to the Energy Policy Act of 2005, drivers who trade their gasoline-only autos for cleaner-running hybrid vehicles now get a tax credit instead of a tax deduction." I find nothing in the tax credit documentation which requires that you "trade a 'gasoline-only' auto" to avail your self of the tax credit. Seems a "reporter" (I use the title loosely) could find accurate information as quickly as I did (Google 3 minutes including reading the IRS document). http://www.irs.gov/newsroom/article/0,,id=157557,00.html
