No more tax breaks for buying Toyota hybrids (beginning next year).

[Dover]

They sold over 60,000 of them! Guess the government decided they no longer needed to offer incentives to buy it.

Here's the article:


The hybrid-car tax credit challenge
By Kay Bell • Bankrate.com


Toyota hybrid vehicle fans, circle Sept. 30 in red on your calendars.

That's the day you must drive one of these fuel-efficient autos off a Toyota lot or give up half of the new tax break created to reward energy-conscious motorists.

Thanks to the Energy Policy Act of 2005, drivers who trade their gasoline-only autos for cleaner-running hybrid vehicles now get a tax credit instead of a tax deduction. That's a welcome change, since a credit produces dollar-for-dollar tax savings.

But some of the law's other automotive tax components are not quite as appealing.


Tax credit for autos:


• First, there is no set tax credit amount. Precisely how much you can subtract from your final IRS bill depends on which eligible vehicle you buy. So careful car shoppers now must take into account not only miles per gallon and price, but also each auto's varying tax break.
• Secondly, the list of IRS-certified vehicles is not fixed. As automakers produce qualified hybrids, they will be added to the roll, meaning consumers could be comparison shopping without all the possible data.
• Finally, the hybrid credit amount will be incrementally reduced and ultimately eliminated. That's not unusual when it comes to tax laws, but in this case the reduction schedule is particularly vexing because the law didn't set one specific date on which the credit cuts will begin. Instead, the phase-out dates will be determined on a manufacturer-by-manufacturer basis, tied to each automaker's individual hybrid sales.


That forces the car companies and their customers into a bit of a guessing game. They will have to keep their eyes on sales reports and calendars to make sure they get the biggest possible tax break or don't lose the tax savings entirely.


60,000 and counting down
The credit countdown starts when a manufacturer sells 60,000 of the fuel-efficient vehicles. The tax break then is reduced over five subsequent calendar quarters after that 60,001st hybrid hits the road....cont'd

http://www.bankrate.com/brm/news/auto/fuel-efficient/20060809a1.asp

[Donnachaidh]

1. link?

[Dover]

2. Just added it to the OP..n/t

[orpupilofnature57]

3. Need to save those tax breaks for the needy, the top15% of us only

went up 13% last year , that addiction Shrub was talking about, oil, is why the rest of us pay.

[whistle]

4. How about tax breaks on gas guzzlers like Hummers and SUVs