[jloretta]

if only 60,000 hybrids are allowed for each maker, how do I get the tax break in next year 's taxes...?...who determines if you were among the first 60,000?...is there some list I need to get on?...dealership seemed clueless(even about the tax incentive)

 

[galaxee]

there is no 60k cutoff for the credit.

they use the financial quarter in which the manufacturer reaches 60k as a reference point. the quarter they reach 60k in sales and the quarter after that, you get the full credit. the quarter after that, it starts to decrease by a percentage until eventually it's completely phased out.

so you don't need to have a number, like "my car is number 41,503" you just need to prove when you bought the car.

 

[DanMan32]

Find out the month that Toyota made their number. You'll probably hear alot about that in the media. Take that month and move to the end of the quarter that month falls in. Then move to the end of the next quarter. Compare that date to your purchase date.

 

[mrv]

I have been updating the sales data for the Toyota/Lexus hybrids over at: http://www.priusonline.com/viewtopic.php?t=7185 (Sticky on the Prius-General board) My best guess for when the 60,000 figure will be hit will be sometime in 2006Q2, most likely early in that quarter. Note that in following quarters, the tax credit is reduced by some percentage, phasing out completely in a couple of quarters (25% a quarter?).

As for how to file for your 2006 US Federal Income taxes for your new (not used, not leased) hybrid purchase in the 2006 calendar year, the IRS hasn't published data yet on that.

The best place to check for what paperwork you'll need to keep on hand for tax purposes is: http://www.toyota.com/prius/tax.html

 

[C.Rickey Hirose]

06 Tax Credit

There is not a clear reference point as of yet on the 1st 60k reaching point but in meantime:


Here is the info on the Federal tax Credit, interpreted by my friend tax Expert: For Toyota brands.
Other Tax Credit also available from $250
such as for the GM's "Alternator Hybrid Credit" LoL !

Beginning January 1, 2006 and up through the quarter that the
automaker sells 60,000 hybrid vehicles, 100% of the credit is allowed.
$3150 of $3150 till 60.000th Prius/Highlander/Camry combined.

Lexus will have their own quotas.

100% of the hybrid car tax credit continues for the next
consecutive quarter.

The next two quarters after that, the tax credit is reduced to
50% of the original hybrid car tax credit. $3150x50%=$1575.00

Then, for the next two quarters after that, the tax credit is
reduced to 25% of the original hybrid car tax credit. $3150x25%$787.50

Finally, the hybrid car tax credit for that automakers’ hybrids
drops to zero. $0
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