Government gives hybrid buyers raw deal on tax bre

It just occurred to me that you might have interpreted my comparison of $3150 tax credit to a Canadian tax credit of $2000Canadian.
I was, in fact comparing a US 2005 tax deduction of $2000 with a 2006 tax credit of $3150.

Certainly the Canadian system is simpler but I'd rather have have more money than simpler. B)

 

I can see a huge digital sign atop the Triangle Building in NYC, with similar, smaller signs, electronically coordinated, all across the country---atop tall buildings in cities, on Interstate overpasses, in cowpastures, even a dedicated cable/satellite TV channel:

TOYOTA PRIUS PUT INTO SERVICE #



21,774

 

It is all hybrids so, obviously, that would include the Prius, HH, and RX400h.

I did some quick math; combined September and October sales for the aforementioned models amounted to a little over 27k. So, throw in another 9k Prius, 2-3k HH, and 2k RX400h and you've got circa 42k hybrids per quarter.

Therefore, unless production and sales ramp up significantly, it'll be tough to burn through 60k in the first quarter of 06 but almost certain to happen in the second quarter.

 

ok there was a thread a while back that sounded like it would end up only being about $800. I'm no US tax law expert. If you can pull $3150 off you tax due that's great! Here a cut of $2000 is good as well, as our Prius cost's are about $10,000 more than US cost.

 

Any of you considering purchasing a domestic hybrid, don’t worry about qualifying for the tax break, you’ll have until December 31, 2006 to make up your mind.

 

No more GM for me. Thank you.

And it looks like my GM (non-hybrid) was made in Canada. Should we still call it domestic?

 

From the discussions on this and other threads, I'm assuming that the 60,000 count begins on 1/1/06 and that it is irrelevant how many hybrids have been sold by a given manufacturer prior to that date. Correct? Can anyone find the reference in the Energy Bill that says the count begins 1/1/06 and post it here?

 

you mean assembled in Canada with parts made in Mexico and Brazil and some from Europe. Like Chrysler Mini Vans with drive axles made in France Germany Mexico or Brazil or like Fords built in Mexico with parts from Canada and Europe?
globalization take it or leave it it's the corporate way of surviving nowadays. Toyota Matrix=Pontiac Vibe. Chev Malibu=Holden (GM Austrailia) Ford Escape=Mazda Tribute Volvo S40=Mazda (can't remember the exact model) the list goes on and on. Domestic because believe it or not GM Ford etc. consider continents not countrys.

 

This date has widely been reported by reliable press organizations.
No other dates have been reported that I am aware of.

Feel free to search the 1724 page document at http://www.ne.doe.gov/EPAct2005/hr6_textconfrept.pdf

 

‘‘(f) LIMITATION ON NUMBER OF NEW QUALIFIED HYBRID AND
ADVANCED LEAN-BURN TECHNOLOGY VEHICLES ELIGIBLE FOR
CREDIT.—
......
‘‘(2) PHASEOUT PERIOD.—For purposes of this subsection,
the phaseout period is the period beginning with the second
calendar quarter following the calendar quarter which includes
the first date on which the number of qualified vehicles manufactured
by the manufacturer of the vehicle referred to in
paragraph (1) sold for use in the United States after December
31, 2005, is at least 60,000.

 

Dood! You rock!

 

All this is providing congress doesn't vote to dump the hybrid credit from the bill to pay for Katrina.

If they do....there's still the original 2006 $500 tax rebate that will work out to what? A couple of bucks?

 

The US Government is subsidizing SUV Sales on vehicle which have > 50% North American content. Now that makes snese doesn't it.

 

Its a credit, not a deduction. So, assumming you pay more than $3150 in income tax, you get back every penny of that $3150.

AMT will eat away at that if you are part of the "filthy rich" that pay AMT (ironically, bracket creep is putting more and more regular wage earners in that camp). And if you owe less than $3150 in income tax, you can't get the full benefit.

 

if you owe less than $3150 tax can you really afford a Prius?

 

I can. But I saved up a nice big down-payment to do it, too. Ironically, I was trying to get approved for a pkg 4... ended up with a pkg 6. Never would have thunk it.

As for the tax deduction/credit issue, I think I'll come out better with the deduction because of my lower tax liability. Others might do better with the credit.

Frank, if you're interested, I posted a couple of (rather long) explanations of deductions vs. credits in this thread. As I wrote in the second post, I'm not a tax expert. But I did a good bit of research (irs.gov & H&R Block) and talked to a friend of mine who is a pro. For what it's worth.

 

Uhh, I have a dumb question.

The magic 60,000 number is for all hybrid vehicles ever sold in the US by any particular manufacturer? Not just for the year 2006, right?

Anyone know how many hybrids, total, Toyota has sold in the US up to this date?

If that number has already been stated by any of the previous posters in this thread, I apologize.

 

So the answer is cars sold on or after January 01, 2006 by each manufacturer.

 

My father can, he's retired. But, since he now pays no income tax, from what I've been told he can't take advantage of the hybrid tax credit.

 

Maybe you could buy the car, take the credit, and lease it to him.