Jump to content

Tax Rebates


Recommended Posts

Does the IRS still offer rebates toward hybrid car purchases? I recently bought a 2007 RX400h & the salesman suggested that I look into tax advantages of buying a hybrid.

Did you buy your RX400h from a Lexus dealership? If so, your salesman was either REALLY not informed, or he was a BIG LIAR for suggesting you to look into the tax credit for hybrids from the government. If not from a Lexus dealership, I may give your salesman the benefit of the doubt that he maybe misinformed because he sells all kind of used vehicles and may not trained to sell hybrids.

Here are something you should know:

1. ONLY new hybrid vehicles are available for government credit. (Since it's an 2007 model, I assumed it was a used one?)

2. The gov. only allowed the first 1 million hybrid vehicles sold from each car manufacture to get credit. Toyota/Lexus has long passed that threshold. I think the last time Toyota/Lexus was available for a credit on hybrids was Sept. 30, 2007. Honda is next in line to pass that 1 million mark. Ford and GM may still have a long way to go. Check it out.

Please correct me if I'm wrong here.

Link to comment
Share on other sites

the us government only allowed the first 60,000 hybrids of that model year to be eligible for the credit. this was done to prodect the us auto industry as toyota was the only manufacturer who would go above that figure in a given year. there are about one million prius hybrids on the road, since the first one came out of the factory. also the govt developed a formula based on the fuel efficiency of the vehicle and its body type for the amt of the rebate.

one thing to check, some states are allowing hybrids to be exempt from sales tax (9%) in washington, so it does pay to see if your local government has a program to help locally. again i am a 400h owner, however in washington i know this is true for the prius i will check on the 400h

Link to comment
Share on other sites

Katzjamr, Thanks for correcting me about getting credit for the first 60,000 hybrid vehicles.

For more info, look at this URL: http://www.fueleconomy.gov/!Removed!/tax_hybrid.shtml. It will explain clearly for you. You will also be able to check on hybrid credit from other manufactures beside Toyota/Lexus.

Based from what I read. The first 60,000 hybrids get 100% credit from the government. After that, only 50% will be given credit for the next 6 months, then only 25% (of the original 100%) will be given in month 7-12. And then no more.

And YES. Only new vehicle can get credit. Not used one.

Additional Requirements

The following requirements must be met to claim the credit:

* The original use of the vehicle commences with the taxpayer.

* The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.)

* The vehicle is used mostly in the United States.

* The vehicle must be placed in service by the taxpayer after December 31, 2005 and must be purchased on or before December 31, 2010.

o Click here for more about the credit phase-out and ending date.

o Click here for information on tax deductions for hybrids placed into service before January 1, 2006.

Link to comment
Share on other sites

Colorado still had a tax credit through 2008 and it did not require the car be new ...

http://www.afdc.energy.gov/afdc/progs/view...gi?tech/EV/CO/0

Great info! Do you know what other states besides Colorado who is still during this tax credit? Btw, when reading this, it's still a little bit unclear on whether they allowed used vehicles or new vehicles only. Perhaps someone who live in CO can confirm this?

"HEVs also qualify for this incentive. This credit is only available in the year during which the vehicle was purchased or converted, and a vehicle may only qualify for this credit one time"

Link to comment
Share on other sites

Colorado still had a tax credit through 2008 and it did not require the car be new ...

http://www.afdc.energy.gov/afdc/progs/view...gi?tech/EV/CO/0

Great info! Do you know what other states besides Colorado who is still during this tax credit? Btw, when reading this, it's still a little bit unclear on whether they allowed used vehicles or new vehicles only. Perhaps someone who live in CO can confirm this?

"HEVs also qualify for this incentive. This credit is only available in the year during which the vehicle was purchased or converted, and a vehicle may only qualify for this credit one time"

Many states (like california) ... in fact the majority, require hybrids to not only be more smog efficient, but more importantly, require them to get 45mpg or better. That obviously knocks any SUV out of the park. The states that allow low mpg vehicles? That just seems wrong & lame ... imo.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share



×
×
  • Create New...

Forums


News


Membership