If you have been considering purchasing a Toyota Hybrid car, you will get less of a tax break beginning October 1, 2006. Toyota is the first car manufacturer to reach the 60,000-vehicle hybrid limit which they did during the calendar quarter ending June 30, 2006. The tax law states that the credit for buying a hybrid vehicle will begin to phase out during the second calendar quarter after the quarter in which the company sells its 60,000th hybrid or lean burn technology vehicle. That is October 1 for Toyota.
Toyota hybrid vehicles purchased before Oct. 1, 2006 will still qualify for the full tax credit credit. For Toyota hybrid vehicles bought on or after October 1, 2006, and on or before March 31, 2007, will receive 50% of the otherwise allowable credit amount. Taxpayers buying vehicles on or after April 1, 2007, and on or before September 30, 2007, will receive 25% of the credit.
Here are the new credit amounts for Oct. 1, 2006 – March 31, 2007:
2005 Prius — $1,575
2006 Prius — $1,575
2006 Highlander 4WD Hybrid — $1,300
2006 Highlander 2WD Hybrid — $1,300
2006 Lexus RX400h 2WD — $1,100
2006 Lexus RX400h 4WD — $1,100
2007 Camry Hybrid — $1,300
2007 Lexus GS 450h — $775
Here are the credit amounts for April 1, 2007 – September 30, 2007:
2005 Prius — $787.50
2006 Prius — $787.50
2006 Highlander 4WD Hybrid — $650
2006 Highlander 2WD Hybrid — $650
2006 Lexus RX400h 2WD — $550
2006 Lexus RX400h 4WD — $550
2007 Camry Hybrid — $650
2007 Lexus GS 450h — $387.50
Anyone who buys a Toyota hybrid car after October 1, 2007 will not be able to claim the related tax credit.
Source: Tax Press Release
Toyota Hybrid New Tax Credit Amounts
That tax credit will be welcome come tax time.
