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Posted by on September 3, 2006, 2:02 am
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mrv@kluge.net wrote:
> toronado455@yahoo.com wrote:
> > mrv@kluge.net wrote:
> >
> > > The base MSRP
> > > for the Prius starts at $22,175, which is an increase of $450 or 2.1
> > > percent. Full tax credit will be available for purchases completed
> > > through September 2006. The approved credit amount for Prius Hybrid is
> > > $3,150.
> > >
> >
> > What is the tax credit?
> >
> > (Don't these cars bring $2500-$3000 *over* MSRP? A tax credit could
> > cushion the blow.)
>
> Only if you're willing to pay a dealer the "Availability Surcharge" or
> "Market Adjustment Surcharge" or "we're a greedy dealership Surcharge"
> of over MSRP for a hybrid available today. Most people ignore these
> overpriced dealerships and go to where the Prius (or other hybrid) is
> sold at MSRP. There are even a few dealerships that are selling for
> less than MSRP. The only thing is that you may have to wait for your
> car.
>
> As part of the big Energy Bill of 2005, Alternative Fuel and Hybrid
> vehicles were given a tax credit. The amount of the credit depends on
> a couple of formulas based on the fuel efficiency of the vehicle, the
> number of vehicles sold in the US since Jan. 1, 2006, and another
> criteria I forget at the moment, but the max credit possible is $3500.
> The Prius has qualified for the highest amount so far, at $3150.
>
> However, there is a sunset provision for the tax credits. After the
> manufacturer (in this case Toyota/Lexus/Scion) has produced 60,000
> hybrids, the credit amount will reduce to 50% of the full credit the
> quarter after this milestone is reached. So, the full credit for
> Toyota/Lexus/Scion hybrids will be dropping by 50% on Oct. 1. 2006, as
> the magical number was hit during 2006Q2. Then each 2 calendar
> quarters after that, it drops another 25% of full credit, until it is
> gone 1 year later.
>
> More information can be found at:
> http://www.irs.gov/newsroom/article/0,,id=157557,00.html
> http://www.irs.gov/newsroom/article/0,,id=157632,00.html
>
> and more specifically:
> http://www.irs.gov/newsroom/article/0,,id=156048,00.html
> http://www.irs.gov/newsroom/article/0,,id=156381,00.html
> http://www.toyota.com/prius/tax.html
> http://www.toyota.com/camry/tax.html
> http://www.toyota.com/highlander/tax.html
> http://www.lexus.com/models/popup_taxCredit.html
Thanks for the info!
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