$4000 Tax Credit

Of course what we have today is a $2000 adjustment to income (effectively a deduction) and not a credit.

As for the proposals: they're Bush's backer's usual mix of global warming denial, funding for fundamentalist terrorists, and subsidies for the rich. How can true Republicans tolerate this sort of ignorance and unjust social engineering?

 

What we have now is a $2000 deduction, not a credit. I wonder if they are proposing changing it to a credit. Or if it is just the usual poor coverage of details about taxes.

I guess it's no wonder that so many people think they'll save $2000 on their taxes with the press talking about deductions and credits as if they are the same thing.

Ex

 

I found this quote at the white house web site.

http://www.whitehouse.gov/news/releases/20...20050427-3.html

"We've proposed $2.5 billion over 10 years in tax credits that will encourage consumers to buy energy-efficient hybrid cars and trucks, and we need to expand these incentives to include clean diesel vehicles, as well."

Maybe there is some proposal to change from a deduction to a credit

I found this quote from:

http://frwebgate1.access.gpo.gov/cgi-bin/w...action=retrieve

Provide tax credit for purchase of certain hybrid and fuel cell
vehicles.--Under current law, a 10-percent tax credit up to $4,000 is
provided for the cost of a qualified electric vehicle. The full amount
of the credit is available for purchases prior to 2004. The credit
begins to phase down in 2004 and is not available after 2006. A
qualified electric vehicle is a motor vehicle that is powered primarily
by an electric motor drawing current from rechargeable batteries, fuel
cells, or other portable sources of electric current, the original use
of which commences with the taxpayer, and that is acquired for use by
the taxpayer and not for resale. Electric vehicles and hybrid vehicles
(those that have

[[Page 253]]

more than one source of power on board the vehicle) have the potential
to reduce petroleum consumption, air pollution and greenhouse gas
emissions. To encourage the purchase of such vehicles, the
Administration is proposing the following tax credits: (1) A credit of
up to $4,000 would be provided for the purchase of qualified hybrid
vehicles after December 31, 2003 and before January 1, 2009. The amount
of the credit would depend on the percentage of maximum available power
provided by the rechargeable energy storage system and the amount by
which the vehicle's fuel economy exceeds the 2000 model year city fuel
economy.

If anyone understands the Fed Budget process, maybe they can make sense of the possible changes. I'd be happy if the Senate would just approve my Prius using the HOV lanes.

ex

 

WHAT !!... we have an energy shortage?? since when?? how could such an important issue seemingly become so desperate practically over night?? surely our best and brightest in government saw this coming a long time ago...

oh wait...thats right... best and brightest has never been tied to our government

 

Gak! And just as I was scrambling to get a 2005 so I don't miss the $2k deduction ! I don't supose this will all be settled & through congress by July, will it? :roll:

 

[font=Times New Roman:0cca9e270c]This is clearly a case of not reporting the relevant details. Let's do the math. The proposed $2.5B for is for 10 years. So, on average, that's $250M per year. Divide that $250M by $4,000 and you get 62,400 "units" annually. Considering that the current deliveries of the Toyota Prius for the US alone is nearing 100,000 units this year, there is no way this could be a $4,000 tax "credit."

Here's what the proposed legislation currently looks like:

http://frwebgate.access.gpo.gov/cgi-bin/ge...24&position=all

"The Common Sense Automobile Efficiency Act of 2005 encourages consumers to purchase environmentally friendly vehicles that will help reduce greenhouse gas emissions while simultaneously reducing our country's oil dependence. It repeals the phase-out of the Qualified Electric Vehicles Credit and Deduction for Clean fuel-Vehicles so that 100% of the credit can be claimed through 2009. Consumers would receive a tax credit of up to $1,000 for hybrid gas-electric powered vehicles and $4,000 --for fuel-cell vehicles."
[/font:0cca9e270c]

[font=Times New Roman:0cca9e270c]______________________________________
David
Connecticut
2005 Prius Owner-Wannabe
on waiting list as of March 28, 2005
Package #6, Tideland Pearl[/font:0cca9e270c]