Toyota Hits 60k Hybrid Limit
Toyota reported that in May it sold its 60,000th energy efficient vehicle and so the tax credit on Lexuses and Priuses (and other Toyota vehicles eligible for the credit) will be reduced to 50% on all cars sold in October. That means instead of a nice fat $3,150 check for buying a Toyota Prius, Uncle Sam will only give you $1,575 back. Bummer. If you wait until next April, you only get a quarter of the original tax credit - $787.50. If you wait until October 2007, you will get no credit.
None of the other auto manufacturers have hit the limit yet so you still have time to snatch up a Civic Hybrid.
…the law limited that tax credit to the first 60,000 vehicles that a manufacturer produces. After a manufacturer hits that limit, the full credit is available only through the next quarter. The credit then shrinks to half its value for six months and shrinks again to one-quarter for another six months before disappearing.
If you’re interested, I’ve written up a list of the tax credits for each vehicle.
via Baltimore Sun.
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Tags: Cars, Hybrids, Taxes
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5 Comments - Share Your Thoughts
Ouch. I didn’t realize this would happen if they were successful selling hybrids. Given the current state of affairs, anything that reduces our dependency on oil is a good thing, so I’m disappointed to hear this.
[...] [On preview, I see Jim over at Blueprint for Financial Prosperity has some thoughts on this as well, along with a writeup of the current tax credits available per model…] [...]
[...] Blueprint for Financial Prosperity bemoans the cap on hybrid car deductions [...]
[...] Al Gore: Hello, I’m Al Gore. You may know me best as your former Vice President, or perhaps as your current legitimate President depending on what counting system you use. But today I’m here as Al Gore, friend to the environment. Blueprint for Financial Prosperity recently informed us that Toyota has sold its 60,000th hybrid vehicle. Why should this matter to you? Well, other than the extraordinary environmental benefits that all these fuel-efficient automobiles grant our world, Toyota hitting the 60,000-hybrid mark means your tax benefits for purchasing eligible Toyota vehicles will soon plummet. Hey, don’t blame me. If I were President, I’d have bought everyone in the country a brand new hybrid vehicle. But I guess you can thank the fine folks of Florida for keeping you in that 12-mile-a-gallon monstrosity of yours. [...]
Hybrids don’t reduce our dependency on foreign oil.