Saw this article today... Toyota Prius 2010 Offers Hybrid Vehicle Tax Credit It says "You've probably seen the new Toyota Prius 2010 commercial, but you haven't, it is one of the best car ads I've ever seen. Prius is a third generation electric car which has several intelligent features. It also offers a good hybrid vehicle tax credit, but you may want to consult with your tax advisor or the IRS before using it this year.There is a $1,700 tax credit by the IRS for owning a hybrid or electric car. The credit is good only if the vehicle is purchased before October 1, 2009." I thought the tax credit was phased out after a car had sold well. So after 60,000 Prius were sold there was no more tax credit. However for a new car like the Ford Fusion the tax credit would still be in effect. Perhaps I have been mistaken? An additional $1700 credit would be a nice bonus! But the lack of a $1700 tax credit would not stop me from getting my 2010 Prius...
When I bought my 2006 Prius I just missed getting a tax credit because over 60,000 had just been sold that year. I have never understood this - if the goverment wants people to change their buying habits to save energy, why in the world would they set a limit. The following comes from the US Tax Code: "The credit begins to phase out for vehicles once the manufacturer sells a total of 60,000 eligible hybrid and lean-burn vehicles starting from January 1, 2006. IRS will announce when a manufacturer exceeds this sales figure" I can't see where any tax credit for Toyota hybrids is now available, as it appears in the following table: I have one of the first 2010's so at least if they put on a limit this time I'll be ok. If I am wrong I would love to know about it, as it doesn't make sense to me: New Energy Tax Credit for Hybrids
No more hybrid tax credit for Prius, but there is a sales tax deduction for new car purchases--see IRS website for details.
New Car (up to $49,500) Sales Tax Deduction in Obama Economic Stimulus Package - Updated with IRS Eligibility Criteria Not as good as a tax credit, but better than nothing... it actually is for any new car.
Yeah, I don't see why they set a limit. Too bad Toyota didn't just rename the G3 the "Priusss" and say it's a new car type.
That is because they don't want you to save energy as there really isn't an energy crisis. If consumers spend less on energy then these companies make less profit. Clearly if they wanted more people to conserve then they would encourage people to buy energy saving products, like hybrid vehicles. Since hybrid's cost more, it is counter productive to remove incentives like tax credits, to get consumers to pay more for these vehicles.
I think some kind of 'clunker credit' is still being considered in Congress, though - IIRC it was about a $4000 tax credit (!) if you traded in a car ten or more years old. I'm planning to get a '10 Prius and dispose of a 1997 Acura RL, so I do want to see what happens with this - Anyone know where this proposal stands in the Congressional process? (I wonder too if this credit might be limited to those buying an American-manufactured car.)
