[snowdall]

Hello all,
I am new to the forum and hopefully a new Prius owner soon. Part of my decision process in what kind of Prius (new or used) and when to get it (tax year 2005 or early 2006) is partially dependant on the tax advantages. With this in mind, I have a couple of questions:

1) Are tax credits/deduction only available on new vehicles? Or can one apply for them when purchasing a used vehicle?

2) From what I understand, in tax year 2005 there is a flat $2000 tax DEDUCTION. Meanwhile in 2006 there is a tax CREDIT (the size of which is dependant on what you buy and when) I am correct in assuming this?

Thanks for the help with this in advance. I am getting more and more excited about getting a Prius and simply can't wait! (might not be able to wait for 2006 at this rate).

Snowdall

 

[fshagan]

You are right ... there is currently a $2,000 tax deduction (reduces your taxable income). As of 1/1/06, and NEW Prius will carry a tax CREDIT of somewhere in the neighborhood of $2,800 to $3,150. I've seen a couple of different prices based on how the people reading the law intrepet it to apply to a new Prius.

Some states also have incentives. There's a pretty good list over at HybridCars.com on tax incentives ... http://www.hybridcars.com/incentives-legislation.html

I'm waiting until after 1/1/06, but the math may work out wrong in the end. I'm in a 28% bracket, so I would realize a $560 savings if I buy before the end of the year. Then I would save about half on gas cost for my 80 mile round trip commute. And there's also a "time value" to money ... I won't realize the savings on the purchase after 1/1/06 until about a year after I would get the savings from the current tax incentive. How much is that worth?

The big variable is the cost of the 2006 Prius. I haven't seen the new MSRPs yet ... if they are a bit higher, and demand spikes up very high, the price of a new Prius could exceed the difference in savings between the $2000 deduction and the $3000 credit.

 

[hyperion]

And for some reason the cost will have to jump because you have to accept the rear view camera with every option offered on the 06 except "bare bones".
No longer having to go into the city I haven't had to parallel park along a curb for years, so as long as I can still turn my head I find the visibility of backing out of diagonal street parking or slots in public parking lots, just fine.
Another "gimmic" and still no comfortable seat and steering wheel option, and no mention of programing the MFD to give you an instrument package! I say "skip the camera and program the MFD to show OBD-2 information."

 

[Dan.]

All the pieces are already there.

I say "skip the camera and program the MFD to show OBD-2 information."

Well this guy has gotten the ODBII stuff working, and Coastal Dave has shown how to hack into the MFD. Looks like all you need to do is glue to two togeather and you'll get ODBII on MFD.

But I do agree. It would be nice to have RPM and stuff like that on the MFD. Remember though that a lot of ODBII stuff would make a driver panic even though there is no need. From my understanding of ODBII fault codes, a code won't light the MIL until it happens 3 times in a row. Which means there would probably be non critical fault codes that would send people screaming to thier dealerships.

Well there is sufficent hacking on the Prius that I'm sure it will happen sooner rather than later.

 

[mrv]

Nearly every state incentive I've seen follows the US Federal criteria - purchased new vehicles. NOT leased or used vehicles.

For calendar year 2005, it's the US Federal Clean Fueled Vehicle Deduction for $2000.

For calendar year 2006, it's the US Federal Clean Fueled Deduction for $500, plus the new Energy Bill tax credit of somewhere around $3000 for the first 60,000 hybrids sold by a manufacturer, then the credit is reduced in following quarters... The IRS hasn't yet released a table showing what vehicles are eligible and the dollar amounts yet.

More governmental incentives are available here: http://autos.groups.yahoo.com/group/toy ... 963256550/

 

[snowdall]

Thanks everyone .... these answers have all be very helpful. I'd prefer to get the tax credit in 2006, but our taxes for 2005 are screwed up and a Prius now would help "fix" things come April. Furthermore, I fear that the 2006 Priuses might be be priced a bit high (especially if a run on them in Dec and Jan cause dealers to put a premium on them). With everything said and done ... I think I'm going to try to get a new 2005 in the next month.

Thanks again all,
Snowdall

 

[DanMan32]

Re: All the pieces are already there.

I say "skip the camera and program the MFD to show OBD-2 information."

Well this guy has gotten the ODBII stuff working, and Coastal Dave has shown how to hack into the MFD. Looks like all you need to do is glue to two togeather and you'll get ODBII on MFD.

But I do agree. It would be nice to have RPM and stuff like that on the MFD. Remember though that a lot of ODBII stuff would make a driver panic even though there is no need. From my understanding of ODBII fault codes, a code won't light the MIL until it happens 3 times in a row. Which means there would probably be non critical fault codes that would send people screaming to thier dealerships.

Well there is sufficent hacking on the Prius that I'm sure it will happen sooner rather than later.

There's two problems with your suggestion:
1. Dave's display has not shipped though promised to be shipped for almost a year now.
2. Attila's system is really neat, but uses a 640x480 display, which is more than the MFD supposedly displays, which I've heard is 800x240. There isn't as much ODB-II information in Attila's system, though the information is available to brought out in reprogramming. He offers his program openly.