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Discussion Starter · #1 ·
Some Toyota and Lexus Vehicles Certified for the New Energy Tax Credit

WASHINGTON — The Internal Revenue Service has acknowledged the certification by Toyota Motor Sales U.S.A., Inc. that several of its 2006 vehicles and a 2005 model year vehicle qualify for the hybrid tax credit enacted by the Energy Policy Act of 2005. The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006, and may be as much as $3,400 for those who purchase the most fuel-efficient vehicles.

The hybrid vehicle certifications recently acknowledged by the Service and their credit amounts are:

2005 Toyota Prius $3150
2006 Toyota Prius $3150
2006 Toyota Highlander 4WD Hybrid $2600
2006 Toyota Highlander 2WD Hybrid $2600
2006 Lexus RX400h 2WD $2200
2006 Lexus RX400h 4WD $2200
Starting in 2006, this tax credit replaces the tax deduction of $2,000 which was previously allowed for taxpayers who purchased a new hybrid vehicle before December 31, 2005 for the clean-burning fuel deduction. The tax credit requires a different certification. Many currently available hybrid vehicles may qualify for this new tax credit.

Consumers seeking the credit may want to buy early since the full credit is only available for a limited time. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
 

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Discussion Starter · #3 ·
I couldn't find a source on the irs.gov website, but the article was sent out via the IRS Newswire today at 4:33. The issue # is IR-2006-057. I'm sure it will be on the site soon. I'll update when it is on the site. Hopefully the others will pop up soon.

*EDIT*
Ah, here is an article. It also includes tax credit info for Ford's Escape Hybrid.
http://www.marketwatch.com/News/Story/S ... 799B8AD%7D
 

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How Tax Credit works !

The amount of the tax credit depends on how many hybrids a manufacturer has sold ( Wholesaled ) to its dealers and Rental Car company within a certain period. - Toyota and Lexus are considered
one manufacturer.

The full tax credit will be available for the purchases completed through the calendar quarter following the quarter in which the manufacturer reaches its cumulative sales ( Wholesales ) of 60.000
hybrid units.

The tax credit is then reduced by 50 % for the next 6 months
another 50% reduction then and then phased-out completely. Toyota is required to include sales ( Wholesale ) of all Toyota and lexus hybrids on or after January 1st 2006 towardsa single 60.000 units threshhold.

Toyota/Lexus hybrid sales from January 1-March 31st, 2006 totals 42.175
Toyota/Lexus forecast to reach 60.000 cumulative hybrids sales during the 2nd Quarter 2006. Credits will therefore be reduced by one-half beginning with vehicle put in service by consumers after September 30, 2006.

This is how Toyota puts it and sent to their dealers.
 
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