Prius Prime to the Rav4 Prime

Not sure if it is the "fault". It is just the way tax rules are set. Although I have not actually read the law document to decipher the intention behind the way such rules are set, I imagine, they set it this way to lessen the amounts of tax credits going back to the individual taxpayer in order to maximize the tax paid to the system.

The bottom line relevant to this thread is that PP's $4500 and RP's $7500 tax credits are not always applicable to everyone, depending on the individual tax situation.

 

That's wild...but is the reduction due to less taxable income for you below the amount needed, or is the Plug_in rebate reduced for all tax payers in the situation? I'll have to do a TurboTax an example

 

Refundable tax credit and rollover type non-refundable tax credit are applied before the non-rollover and non-refundable tax credits.

Suppose, you have $8,000 tax liability,
But you have kids in college that qualify for say $5,000 refundable tax credit. And you put a solar panel on the rooftop that allows $3,000 non-refundable but rollover tax credit. And if you bought a BEV on the same tax year allowing $7,500 non-refundable, non-rollover tax credit.

The taxpayer would love to apply the BEV credit first to make the tax liability down to $500 and then apply solar credit to get the tax to $0, rolling over the remaining $2500 solar credit to next year, and still get a $5000 refund for the college credit by applying it last. But by the tax code rule, the order is the opposite, the $5000 refundable credit gets to be applied first, reducing the tax liability to $3000, then the solar credit gets applied to reduce the tax liability to $0. No more solar credit to roll over to next year. And the BEV credit applies last, but since there is no tax liability, you never see the $7500 tax credit.

 

In that case lease makes sense? Because the lease holder gets the credits and passes it through? Assuming you know in advance. With all of the tax law changes, it has been very hard to do year end planning.

 

Yap. As long as the lease term is compatible with your driving, like 10K miles/year. I considered leasing Honda Clarity Plug-In Hybrid ($7500 tax credit) for that reason. They had a much better lease deal than purchase.

 

Ah it must be spring time if Prius chatters are talking the tax credit thing to death going on like 10 years now. Can I mention that like the 09 Lexus 450h both the Rav4 Prime models are E-AWD. That has to be worth several thousand $ over the Prius Prime. And both front seats are power adjustable. Still no tax credit for me because zero $ is not more than ~$70k (PP) ~$120k (R4P). Not sure about getting the $1600 check too. So many familiar user names like old times. Good to see you all

 

Hi James we are now in the RAV4 Hybrid 2020.
We just got the replacement gaso tank that fills up fully, and just passed close to you on I68 on the way home from Pittsburgh. Now we have 520 mile range. Prime would still be more expensive in NoVA with our annual car tax, but the state Dems are trying to push plug-ins... they just need to sort out the amount of subsidy they want to hand out. Too late for me as our Prius died a year ago.

 

I am late to this discussion but very interested in Rav4-Prime.
Not for just the MPG economy or performance.

It's just that wife likes Rav4 as SUV over my other cars (MDX, MB GLE350 etc.)
Unfortunately we had to sell her 09 Rav4 (too many cars) when I bought MB for towing.

I have 2017 Prius Prime that is a perfect city car for us.
When PP is fully charged in power mode it's got the best pep (torque from a standstill) compared (MB, Acura TL etc.)
It's just nice to drive around city and charge every night without using much gas.
It's my preferable car over all other cars for shorter trips.

I have a Sport Hybrid MDX 2019 that is totally tuned for performance (better MPG is a side benefit). 3 electric motors give it a really nice power with V6 engine.

So in the future when Rav4-Prime prices are reasonable I would replace Prius Prime with Rav4-Prime.
At 40K+ for Rav4-Prime, it's darn close to 45-46K MDX Sport Hybrid (much larger, 3 rows and performance).

Some people just like SUVs (higher sitting position, more room, luggage, 4 WD etc.)
What I find appealing about SUV/cars with plug-in battery is that you get better performance AND overall better MPG.

PS: I been on this forum for a while (but messed up old account so started new one )

 

Yes please if you can combine both accounts or send me reset password link I would prefer to use the old account.
When I chose to login using google I must have used the wrong google account (I have multiple) and once you get that registration page you can't go back and use other google account to log in

 

Yes. That's the one.