Tax Credit - Toyota's Official Position

From Toyota.com - HYBRID VEHICLE TAX CREDIT

HYBRID VEHICLE TAX CREDIT​

Individual purchasers of a Toyota or Lexus hybrid vehicle may be able to take advantage of the new federal hybrid vehicle tax credit. Depending upon the hybrid vehicle purchased, the hybrid vehicle tax credit is estimated to range from $2,200 to $3,150. However, because the Internal Revenue Service has not yet provided specific guidance on the hybrid credit or confirmation of any specific amount of credit, there are no assurances any purchasers will be able to take advantage of any specific amount of the credit, from zero credit up to the above estimate.

To qualify for the potential hybrid tax credit:

1. The Hybrid vehicle must be new. Used vehicles will not qualify.

2. The Hybrid vehicle must be purchased. Leased vehicles will not allow the lessee to take advantage of the hybrid tax credit.

3. The purchaser must accept delivery of the Hybrid vehicle from the dealer on or after January 1, 2006. A Hybrid vehicle delivered before that date may qualify for the previously available $2,000 tax deduction, but will not qualify for the hybrid tax credit. However, a Hybrid vehicle delivered on or after January 1, 2006 will no longer qualify for the $2,000 tax deduction.

4. The hybrid tax credit amounts will begin to be reduced for deliveries later in 2006. The reductions may begin to apply as early as deliveries after either June 30, 2006 or September 30, 2006.

5. The purchaser must retain appropriate documentation showing the purchase of the vehicle and the date of the delivery of the vehicle.

The benefit of the hybrid vehicle tax credit will also be substantially reduced or eliminated if the individual purchaser is subject to the federal alternative minimum tax. Individual purchasers and corporations who have business use of the Hybrid vehicle are subject to different tax laws that may also substantially reduce or eliminate the above benefits.
This summary does not constitute tax advice. All persons considering the use of this important new hybrid vehicle tax credit should consult with their own tax advisors to determine the specific amount of benefit, if any, that they may be able to claim on their federal income tax returns. Your tax advisor may also have further information on the many state and local tax incentives that may
be available to Hybrid vehicle owners.

The above summary is based on the federal income tax law in effect in Fall, 2005, and may be changed, without notice, by later changes to the tax law or further action by the Internal Revenue Service.
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My moon is over 870m! B)

 

I'll PM you rather than hijack my own thread.

 

4. The hybrid tax credit amounts will begin to be reduced for deliveries later in 2006. The reductions may begin to apply as early as deliveries after either June 30, 2006 or September 30, 2006.

The phaseout of the tax credit for any hybrid manufacture cannot occur until after June 30, 2006 at the earliest and quite possibly won't begin until after September 30, 2006.