Hybrid Tax Credit: Time Running Out for Toyota/Lexus Models
Friday August 18, 2006
The IRS continues to release sales data for hybrid cars and trucks. The hybrid tax credit starts to phase out once a manufacturer sells more than 60,000 qualifying vehicles. Kay Bell reported that Toyota has already sold more than 60,000 hybrids. What does that mean? If you take possession of a Toyota or Lexus hybrid model on or after October 1, you'll be eligible only for half of the tax credit amount.
Other hybrid models are still eligible for the full tax credit. The IRS has announced that Honda and Ford/Mercury hybrids are still eligible for the full credit.
More information:
Hi, William. I’m still a little confused about the Prius tax credit and hope you can help.
I just bought a 2006 Prius to take advantage of the $3,150 credit before it is reduced after Sept. 30.
However, what I’ve been unable to determine is whether I need to immediately submit a new W-4 form with a much higher number for the rest of the calendar year to avoid missing much of the credit.
For example, I currently have my withholdings at a number that puts me almost at a zero-owed, zero-return status. (I got back $29 last year.) Do I need to immediate bump the number on my W-4 much higher to avoid losing so much of the credit?
Thanks in advance for your help/advice.