Hybrid Tax Credits Running Out

Due to an IRS regulation, people seeking the maximum tax credit when they buy a hybrid car will be in for a shock if they don’t buy soon. After Sept. 30, buyers will only get half of the tax credit they would have been due if they'd bought a Toyota or Lexus hybrid before that date. Blame Toyota for selling 60,000 hybrid vehicles already in 2006. The cut takes effect at the end of the quarter during which that 60,000th vehicle was sold. 

If you’ve been eyeing that Toyota Prius ($3,150 tax credit), Camry Hybrid ($2,600), Highlander Hybrid ($2,600) or even the Lexus GS 450h ($1,550) or RX 400h ($2,200), buy before the end of September or those credits are halved. This doesn't impact Honda’s Civic and Accord hybrids or Ford’s Escape Hybrid because those automakers haven’t sold 60,000 hybrid vehicles yet this year. 

[Hybrid Hustle, AutoWeek]

Comments

[marco]

can i get any kind of tax credit for my '06 MB E320 CDI (diesel) ?

[Rebecca]

Where on the internet can I find the factory invoice price to the dealer on a new 2008 CRV EX automatic and how do I negotiate the lowest price?

[CarDave]

Different models of a hybrid car have different phase out dates then others, becuase it is based on number sold. The initial purpose of the tax credits was to help relieve the cost strain caused by early adapters. One important thing about the Tax Credits is that you cant take the ATM, and each car has a different credit value assigned to it.