Hybrid Tax Credit begins to phase-out for Toyota/Lexus models

Toyota and Lexus hybrid vehicles will be eligible for a reduced tax credit starting on October 1, 2006. The IRS announced:

"Vehicles purchased before Oct. 1, 2006 qualify for the full credit. For Toyota hybrid vehicles bought on or after October 1, 2006, and on or before March 31, 2007, the credit is 50 percent of the otherwise allowable credit amount. Taxpayers buying vehicles on or after April 1, 2007, and on or before September 30, 2007, can only get 25 percent of the credit."

The hybrid credit for Toyota and Lexus models will be completely eliminated by October 1, 2007. More information:

• Hybrid Tax Credit
• Hybrid Tax Credit Limitations
• List of Eligible Vehicles
• Phase out dates and dollar amounts for Toyota and Lexus models
• Toyota Hybrid Begins Phaseout on October 1 (IR-2006-145)