Toyota and Lexus Hybrid Car Tax Credits End
- Date: 2007-11-14 - Word Count: 395
Share This!
Toyota certain carries the banner when it comes to hybrid car sales. One has to wonder if it will continue now the Toyota and Lexus hybrids have lost all tax credits associated with their purchases.
The Prius. If ever there has been a successful car launch, this is it. How popular is the odd little hybrid? Most people think it was the first hybrid launched to the mass market. In truth, Honda had hybrids out long before Toyota, but the Prius just stomped them in the market.
Toyota and the entire hybrid vehicle market has also benefited heavily from a form of federal subsidiary. The federal government has a stated goal of weaning us off of our oil addiction. Obviously, hybrid cars represent a step in the right direction. To financially motivate people to buy hybrids, the government issues a large tax credit to people who purchased new ones.
So, is the hybrid tax credit a big deal? Oh, yes. It represents a dollar for dollar reduction of the tax owed on your personal returns. It is not a deduction that reduces your gross income before determining your tax due. Instead, it actually is subtracted from the tax. If you determine you owe the IRS $5,000 and purchased a hybrid with a tax credit of $2,500, you end up owing the IRS $2,500. Alas, the hybrid tax credit is a stepped event.
The government's goal is to get the public interested in hybrid cars. It is not to give the hybrid manufacturers a free ride forever. As a result, the hybrid tax credit for each manufacture is phased out over time. The phase out is based on the number of cars sold.
Toyota and its subsidiary Lexus have just hit the sales cap for the hybrid tax credit. Specifically, the tax credit was terminated once 60,000 total hybrids were sold by the two brands. Well, it happened.
As of October 1, 2007, individuals buying any Toyota or Lexus hybrid will no longer receive a tax credit. None. Nada. Zippo. That being said, both brands offer excellent cars that should be attractive to buyers regardless of whether there is a tax credit or not. If you really want that tax credit, you can look to other brands that still qualify for them.
Aazdak Alisimo writes about hybrid cars. Find hybrid car dealers in your area at HybridCarDealerDepot.com.
The Prius. If ever there has been a successful car launch, this is it. How popular is the odd little hybrid? Most people think it was the first hybrid launched to the mass market. In truth, Honda had hybrids out long before Toyota, but the Prius just stomped them in the market.
Toyota and the entire hybrid vehicle market has also benefited heavily from a form of federal subsidiary. The federal government has a stated goal of weaning us off of our oil addiction. Obviously, hybrid cars represent a step in the right direction. To financially motivate people to buy hybrids, the government issues a large tax credit to people who purchased new ones.
So, is the hybrid tax credit a big deal? Oh, yes. It represents a dollar for dollar reduction of the tax owed on your personal returns. It is not a deduction that reduces your gross income before determining your tax due. Instead, it actually is subtracted from the tax. If you determine you owe the IRS $5,000 and purchased a hybrid with a tax credit of $2,500, you end up owing the IRS $2,500. Alas, the hybrid tax credit is a stepped event.
The government's goal is to get the public interested in hybrid cars. It is not to give the hybrid manufacturers a free ride forever. As a result, the hybrid tax credit for each manufacture is phased out over time. The phase out is based on the number of cars sold.
Toyota and its subsidiary Lexus have just hit the sales cap for the hybrid tax credit. Specifically, the tax credit was terminated once 60,000 total hybrids were sold by the two brands. Well, it happened.
As of October 1, 2007, individuals buying any Toyota or Lexus hybrid will no longer receive a tax credit. None. Nada. Zippo. That being said, both brands offer excellent cars that should be attractive to buyers regardless of whether there is a tax credit or not. If you really want that tax credit, you can look to other brands that still qualify for them.
Aazdak Alisimo writes about hybrid cars. Find hybrid car dealers in your area at HybridCarDealerDepot.com.
Related Tags: money, price, credit, sales, tax, end, hybrid, irs, lexus, toyota, terminate, prius, phase out
Your Article Search Directory : Find in Articles
Recent articles in this category:
- Improve the Value of Your Truck With a Truck Bed Cover
If you are a truck owner and are looking for a way to increase the value and also protect your inves - An Overview of Emergency Road Services
Anyone that owns a vehicle definitely understands that there are truly countless facets of driving a - Buying From Car and Truck Auctions in Canada
Buying a vehicle from an auction can be a good way to pick up a bargain as long as you know what you - 2011 Green Car Of The Year- Who's In It To Win It!
The Green Car of the Year award is a program designed by Green Car Jouranl to recognize and honor ve - Honda's 2010 Odyssey is Efficient, Practical and Convenient
If you are looking for a minivan that has a seating capacity of up to eight persons and handles almo - Greener Trucks For Delivery Work
Green' is a word you'll hear a lot when it comes to transportation, from bicycles to buses - but you - The Courier and Haute Couture
Some jobs just ooze opportunity to flaunt yourself and show off your latest togs but sadly that's ra - All-New 2011 Toyota Camry
The Toyota Camry has been a continuous leader for years in the family midsize sedan class by being a - The Various Benefits Of Summer Tires
As you probably know , different tires are optimized for different conditions. Not only that, someth - A Couple of Tips on Buying a Used Cars in Toronto
If your old car has finally kicked the bucket and you need to get yourself a new mode of transport t
Most viewed articles in this category:
- How to Remove Window Tint
Applying tinting film to car or household windows may be fun, but removing it can be tricky if yo - Transporting Your Car
If you are relocating to another state or another country for employment or family reasons, you may - Choosing The Right Sticker For The Motorcycle Helmet
When people decide to buy a motorcycle, the dealer will usually throw in a helmet. This is because s - Suzuki's 2007 Xl7, “wave” Grand Vitara Debuts at the 2007 Scias
In the news: American Suzuki Motor Corporation has presented its array of cars and SUVs at the 2007 - Nissan Skyline GTR: A Racer That Is Affordable
If you've ever eyed a Porsche 911 or a Ferrari Testarossa, but thought the price was too steep, the - How To Buy Cheap Cars
There are a number of seized car auctions held in various places every month or at least quarterly. - Federal Agencies Expands Hybrid Fleet
Three federal agencies in Kansas recently added hybrid vehicles to their fleet. The hybrid vehicles - New Cars, New Gadgets Presented at the 2007 Naias
The 2007 North American International Auto Show has become an event of glamour, fashion and technolo - Aura Green Line Added to 3 Federal Fleets in Kansas
Three Kansas City area federal agencies added Monday the new 2007 Saturn Aura Green Line hybrid vehi - Top Vehicles by Autoweek Editors Honored at 2007 Naias
Everybody has favorites. Bill may like Ford cars. Susan may be attracted much by the power of pi