[Leslie]

I'm considering a Prius and the dealer told me yesterday I would receive a $2000 fed tax credit and a $1000 state tax credit (MO) if I purchased a Prius in 2005. I can find this information no where on internet. For fully electric cars, yes. For hybrids, nothing. Is the dealer blowing smoke?
:?:

 

[galaxee]

you get a $2000 federal DEDUCTION. very different from a credit.

http://www.irs.gov/newsroom/article/0,, ... 66,00.html

go to your state's revenue service website and search for "hybrid" and you will come up with an answer for your state taxes.

 

[jacqueusi]

It burns me up just how many dealers and even newspapers casually switch CREDIT with DEDUCTION in regards to the Prius.

I'v scoured the web and all I could find for Federal is a $2,000 "Above The Line" deduction. Depending on your tax bracket, the actualy tax benefit would be 1/8th of the $2 Grand.

Some states are giving tax credits, but it all depends on your state. In my case, Michigan has nada.