Long story short, my beloved Prius Gen3 got totaled and I'm looking for a newer one. Out on the main Gen4 forum, MalachiNG smartly suggested that I also consider a Prime and after reading tons of posts on this forum I couldn't agree more. I will be driving a lot, including at night, and outside of the missing spare tire the Prime is almost certainly a better choice for me. Further research showed that the IRS does indeed consider models 2017-21 qualified for the up to $4,000 tax credit for FY23: Used Clean Vehicle Credit | Internal Revenue Service Manufacturers and Models of Qualified Used Clean Vehicles | Internal Revenue Service 1) I am curious to know if anyone in this community has done this yet. I must say that "the dealer reports required information to you at the time of sale and to the IRS" has me slightly worried as I see no specific forms listed by the IRS for both the transaction with the customer and the report to the IRS. What do they use? A blank sheet of paper? 2) Just for my peace of mind, am I correct that the HV batt capacity on the Prime is 8.79Kwh? 3) Does anyone know if the 4K tax credit applies to the entire tax earnings for joint filers, or is it only available for the amount earned by the one spouse who buys a used Prime? (sorry for the dumb Q, taxes are not my field of expertise...) On another note, in addition the owner's manual, what are all the accessories that come standard with a Prime? I'm asking because I've seen a few listings where the dealer lists nothing. I also called a place where the sales guy was entirely clueless about this.
That would be nice, but I'm somewhat doubtful. I don't think Toyota has officially applied to get any vehicle qualified for the tax credit yet, let alone older moldels: Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After | Internal Revenue Service I would imagine the tax credit applies to the entire tax earnings of joing filers. If you owe more than $4,000 together, you'd get that back. But if you both owe less than the tax credit you wouldn't receive the whole tax credit.
Thanks for the tax bit. As to the doc you listed, it refers to new vehicles. I posted the IRS doc for used ones in my OP. FWIW I will more than likely get a 2017 Prime with low--ish mileage as more recent models sell at utterly ridiculous prices.
You're right! The list does mention the Prime within those years! Now I'm going to be looking for one! Too bad a lot of them are being sold at brand new prices even though they're a few years old with dozens of thousands of miles on them. Ya, the 2017 might be the best bet. Didn't some of those have only 4 seats?
I've never heard of such credits applying to the income of just the one spouse on a joint filing. But then, I've always lived in "community property" states, where such separation would create a conflict with state law.
If you're filing JOINT, there is only one AGI reported on your tax return, regardless of who earns the income. So the IRS wouldn't even know the AGI's for each spouse. Same for the tax liability, which must be above $4,000 to receive the max credit.
This. I was excited to see the tax credit is going to be applicable to used Primes. However, our combined AGI is too high to qualify....drat.
