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Discussion Starter · #1 ·
This questions has probably been asked over and over, but I have not been able to be on line for awhile...so, please forgive the repetition....

I think I might qualify for the tax rebate, but do not know how to find out. When I called the dealer today, they said go to Toyota's sight and get the information there. I could not find where to look once I was there.

Do any of you know the procedure to find out if a prius qualifies to be in the "first 60,000" to get the tax credit????

Thanks for any advise you can offer!!!!
 

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Purchased before September 30, 2006 qualifies for the FULL credit ($3150 for the Prius). If you purchased on October 1, 2006 you only qualify for HALF the credit.
 

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Hi Mari.

I hope this can be of help to you. Read on. vehicle purchased after Sept 30th the full credit does not apply. $3150 initially, went down to $1575



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.

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.




The below is an excerpt from the Dept of Energy website at http://www.doe.gov/taxbreaks.htm :

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Automobile Tax Credits
Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for, and can receive, an income tax credit of $250-$3,400 ? depending on the fuel economy and the weight of the vehicle. Hybrid vehicles that use less gasoline than the average vehicle of similar weight and that meet an emissions standard qualify for the credit. “Lean-burn” diesel vehicles could also qualify, but currently available diesel vehicles do not meet the emissions standard. There is a similar credit for alternative-fuel vehicles and for fuel-cell vehicles.

If individuals and businesses buy more than one vehicle, they are eligible to receive a tax credit for each. If a tax-exempt organization buys such a vehicle, the retailer is also eligible to receive another credit. Companies that buy heavy-duty hybrid trucks are also eligible for a larger tax credit. Currently, there is a $2,000 tax deduction for hybrid vehicles for the remainder of 2005.

This tax credit is for vehicles “placed in service” beginning January 1, 2006, but because there is a waiting list for many hybrids, consumers can receive the tax credit if they arrange to purchase the vehicle this year as long as they do not take possession of the vehicle until January 1, 2006. This tax credit will be phased out for each manufacturer once that company has sold 60,000 eligible vehicles. At that point, the tax credit for each company’s vehicles will be gradually reduced over the course of another year.
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Federal only, and only through the end of the quarter in which the
60,000th
car is sold for each manufacturer. Some states also offer a credit,
but that is at the whim of each state legislature.

Actually through the end of the quarter after the quarter in which the
60,000th car is sold.

* Beginning January 1, 2006 and up through the quarter that the
automaker sells 60,000 hybrid vehicles, 100% of the credit is allowed.
* 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.
* Then, for the next two quarters after that, the tax credit is
reduced to 25% of the original hybrid car tax credit.
* Finally, the hybrid car tax credit for that automakers’ hybrids
drops to zero.
 

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Let me clarify, it isn't the first 60,000 that get the tax credit. It is the second calendar quarter the 60,000th qualifying tax credit car of that dealer has been sold that the FULL tax credit gets "phased out". So for the Prius, the 60,000th car was sold between April-June of 2006, the last day for the full credit was September 30, 2006 (which is the end of the second calendar quarter). The last date for HALF credit is March 31, 2007, and the last date for QUARTER credit is September 30, 2007. See the website for more: http://www.fueleconomy.gov/feg/tax_hybrid.shtml :p
 

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Discussion Starter · #5 ·
THANKS FOR ALL THE GREAT INFORMATIION!
I am satisfied that my May car will qualify...but what do I need to take to the tax man? Where do I get that information that he will need???
Again, thanks!!!!
 

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Mari, just take a copy of your sales receipt which will show you bought a Prius in May 06. The tax forms will have a line to make the deduction. There is no paperwork to submit to the IRS. It's very simple.
 

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we bought our Prius this week. Do we qualify for $1500 tax credit or tax deduction? i read through the earlier postings and still wasn't clear about it. Would appreciate comment from fellow members who've gone through this.
 

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mike_smriti said:
we bought our Prius this week. Do we qualify for $1500 tax credit or tax deduction? i read through the earlier postings and still wasn't clear about it. Would appreciate comment from fellow members who've gone through this.
Well, was this week when you bought it between October 1st 2006 and March 31st 2007? Yes? Then it qualifies for half the full credit.

OK, here's the numbers:
Purchased between:
Jan 1, 2006 - Sept 30, 2006: $3150
Oct 1, 2006 - March 31, 2007: $1575
April 1, 2007 - Sept 30, 2007: $787.50

All of these, even the quarter credit, is higher than you got back from the $2000 DEDUCTION that was in effect for 2004-2005 which at an average of 20% bracket, netted about $400 back in your pocket.
 

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http://www.irs.gov/newsroom/article/0,, ... 32,00.html
suggests form 8910 will be needed come tax time.

(You will also want to do the dual AMT calculations, to be sure that you can fully apply the hybrid tax credit.)

see also: http://www.irs.gov/newsroom/article/0,, ... 62,00.html
and
http://www.toyota.com/prius/tax.html
has some supporting documents that you will want to hold onto (but not need to file).

Amount of US federal tax credit for new 2005-current Prius purchased (not used, not leased) within these dates, if you aren't subject to AMT:
Jan. 1, 2006-Sept. 30, 2006: $3150 (full credit amount)
Oct. 1, 2006-Mar. 31, 2007: $1575 (50% credit amount)
Apr. 1, 2007-Sept. 30, 2007: $787.50 (25% credit amount)
Oct. 1, 2007 onward: $0 (no more credit - sunset)

(As someone else stated, the US Federal Income hybrid tax credit phaseout begins the calendar quarter AFTER the quarter a manufacturer sells 60,000 hybrids in the US following Jan. 1, 2006. So, knowing if you're in the original 60,000 sold will not help you (you can view the numbers sold at this Prius-General Forum's sticky: http://www.priusonline.com/viewtopic.php?t=7185 ) - the important number to know is your in-service date (usually when you purchased/took delivery of your car).)


Don't forget to check to see if your state offers any tax incentives! http://autos.groups.yahoo.com/group/toy ... 963256550/ can get you started.
 

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The phase out is not THE quarter after mfr sells 60K, but the quarter after that. Toyota made 60K in May, so quarter after that, June-Sept gets full credit. The next two quarters after that, Oct-Mar07 gets half. April07-Sept07 gets quarter. Oct07-on gets nada.

Bummer that Toyota didn't reduce production a bit so that the 60Kth car would sell in beginning of July.
 
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