September 21, 2006
The tax credit for buying a Toyota hybrid vehicle will begin to fade away October 1.
Federal law requires that the tax credit for buying a hybrid vehicle begins to phase out during the second calendar quarter after the quarter in which the company sells its 60,000th hybrid.
Toyota reports its cumulative sales of qualified vehicles to retail dealers has reached the 60,000-vehicle limit during the calendar quarter ending June 30, 2006, according to the Internal Revenue Service.
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.
Here are the credit amounts for Oct. 1, 2006 March 31, 2007:
- 2005 Prius $1,575
- 2006 Prius $1,575
- 2006 Highlander 4WD Hybrid $1,300
- 2006 Highlander 2WD Hybrid $1,300
- 2006 Lexus RX400h 2WD $1,100
- 2006 Lexus RX400h 4WD $1,100
- 2007 Camry Hybrid $1,300
- 2007 Lexus GS 450h $775
Here are the credit amounts for April 1, 2007 September 30, 2007:
- 2005 Prius -- $787.50
- 2006 Prius -- $787.50
- Highlander 4WD Hybrid -- $650
- 2006 Highlander 2WD Hybrid -- $650
- 2006 Lexus RX400h 2WD -- $550
- 2006 Lexus RX400h 4WD -- $550
- Camry Hybrid -- $650
- Lexus GS 450h -- $387.50
Beginning October 1, 2007, taxpayers who buy a Toyota hybrid cannot claim the related tax credit.
