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Fed. tax credit on new Prius

Discussion in 'Gen 3 Prius Main Forum' started by reesch, Feb 19, 2009.

  1. reesch

    reesch Junior Member

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    Thinking the Fed. Tax Credit on hybrids in general, Prius in particular is determined on an annual basis, not a cumulative total number sold.

    Can someone out there please clarify. Have an '05 Prius, want an '10, but may go with an '09 based on economics and expected high costs of '10.

    Thanks much
    Reesch
     
    #1 reesch, Feb 19, 2009
  2. qbee42

    qbee42 My other car is a boat

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    The Federal tax credit was limited by total units sold. Prius passed that mark long ago.

    Tom
     
    #2 qbee42, Feb 19, 2009
  3. fredthepostman

    fredthepostman Member

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    I do believe there is a tax break for the sales tax. I have not read the details yet but it would seem to help a little.
     
    #3 fredthepostman, Feb 19, 2009
  4. NYPrius1

    NYPrius1 Active Member

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    Yes it was for sales tax and any finance charges.
    Hope this helps
     
    #4 NYPrius1, Feb 19, 2009
  5. usbseawolf2000

    usbseawolf2000 HSD PhD

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    and it is tax deductible NOT tax credit.
     
    #5 usbseawolf2000, Feb 19, 2009
  6. ggood

    ggood Senior Member

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    They dropped the deduction for interest. Just sales tax now.
     
    #6 ggood, Feb 19, 2009
  7. Patrick Wong

    Patrick Wong DIY Enthusiast

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    If you want an interest deduction, you could fund the car by tapping your home equity line of credit (assuming that you have equity to tap).

    Regarding the sales tax deduction, you can choose between taking a deduction for state & local income taxes; or sales tax. Can't take both deductions.
     
    #7 Patrick Wong, Feb 19, 2009
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