Edmunds dealer partner, Bayway Leasing, is now offering transparent lease deals via these forums. Click here to see the latest vehicles!

Tax credits / incentives for hybrids?

SylviaSylvia Member Posts: 1,636
edited March 2014 in Toyota
Does your state offer some type of incentive for buying a hybrid? Do you find it confusing? Here's the place to ask your questions.
Tagged:
«1345

Comments

  • gagricegagrice Member Posts: 31,450
    Sounds like Oregon is serious about hybrids. A $1500 tax CREDIT is substantial. Unless of course the Toyota dealers are greedy like in CA.

    http://www.registerguard.com/news/2004/08/16/b1.cr.hybrid.0816.ht- ml
  • rpgolferrpgolfer Member Posts: 157
    gagrice- I live in California and I should be able to file for a $1500 tax credit this year with my returns. Last year if I had taken possession, I could get $2k. I am going to persue the return with my tax guy when I do my '04 taxes.
    mfullmer- Drive that new Solara (congrats) down to the Toyota dealership and buy BOTH new cars!! This way you'll have that shiny new Solara, be in debt up to your ears and the Salsa Red Pearl that you've always wanted, too!
    Thanks,
    Rich
  • gagricegagrice Member Posts: 31,450
    I wonder how many states offer tax credits on hybrids?
  • tempusvntempusvn Member Posts: 119
    I know that up until July 1, Maryland forgave all state sales tax on hybrids (5% of purchase price), which was significant. They haven't renewed that one yet.

    West Virginia is great, they offer:

    "a tax credit equal to 40 percent of the incremental cost for the purchase or lease of a dedicated alternative fuel vehicle. An additional credit equal to 30 percent (for a total of 70 percent) of the incremental cost is provided for the acquisition of a dedicated alternative fuel vehicle that meets stringent emissions standards"

    When you take calculate that out for a Prius, it works out to a direct writeoff of $3,750 against state income taxes, but you have to spread it over three years.
  • mfullmermfullmer Member Posts: 773
    Actually the next house we buy definitely has to have a three car garage then I can get a Prius and we can use that and the Lexus to commute and save the Solara for the weekends!

    Three car garages are hard to come by here in Atlanta. In CA I never had a house that didn't at least have a three car garage!
  • solar_dadsolar_dad Member Posts: 22
    CA has no state tax credit on hybrids. You're referring to the Federal DEDUCTION of $1500 for 2004. This will go down by $500 each year and phase out in 2006.

    Mike
  • rpgolferrpgolfer Member Posts: 157
    solar_dad- You're right, Ca doesn't have state tax credits, only the feds do. But, there are legislations pending to allow hybrids in the "diamond" (HOV) lanes. They just notified me that smog checks are no longer needed and I'm hoping that registrations can be extended beyond the current 2 yr period. I, like John, believe that HSD technology will be common place and hybrids are here to stay.
    Thanks,
    Rich
  • stevedebistevedebi Member Posts: 4,098
    "They just notified me that smog checks are no longer needed and I'm hoping that registrations can be extended beyond the current 2 yr period."

    Wonder who made that bone headed mistake? The Prius has an ICE, which needs to be monitored for comopliance with CARB. Perhaps it could use a longer period between checks, but it still needs to be checked...
  • oranuoranu Member Posts: 10
  • oranuoranu Member Posts: 10
    Assuming purchase of an Accord Hybrid in California for $33,505 prior to end of this month in 2004, and a top marginal tax bracket of 28%, how much money would be saved because of the 2004 tax benefit? (As I am confused by the tax benefit, even an approximation will be of help.)

    Oranu
  • backybacky Member Posts: 18,949
    First there is the question as to whether the HAH will qualify for the Federal tax deduction, which for 2004 was restored to $2000 (note it's a tax deduction, not a tax credit). Perhaps one of the new owners of the HAH can tell us what they heard from dealers about the tax deduction. If the HAH qualifies, you can deduct $2000 from taxable income, so your savings depends on your tax bracket.
  • timber104timber104 Member Posts: 24
    I live in New York and have bought a Toyota Prius 2005. I have heard State laws differ from state to state and I am looking for facts & not fiction about the hybrids. Example(s) Federal Tax Credit of $2000 from IRS, Each state may offer more tax credits or rebates. State of Conn. offers no Tax when you buy a hybrid. In Washington D.C. you may use the H.O.V. lanes with only one person in the car, as long as it is a hybrid.

     

    What other laws exist and how do people go out and find them for the state they are in?

     

    Please help me find out more information.
  • larsblarsb Member Posts: 8,204
    "State tax credits, deductions, and exemptions are available in California, Colorado, Maryland, New York, and Oregon. New Jersey offers rebates to local government entities purchasing hybrids. In Washington, some hybrids vehicles are exempt from emission control inspections. "

     

    This page also contains a PLETHORA of Hybrid tax info and other handy tips:

     

    http://www.fueleconomy.gov/feg/tax_hybrid.shtml
  • larsblarsb Member Posts: 8,204
    "In addition to federal incentives, individual states offer additional incentives, rebates, or grant programs to encourage purchase and leasing of hybrid and low/zero emission vehicles. For example, Colorado currently offers a state tax credit of $2,678. For Colorado residents, combining the state tax credit with the federal tax deduction would essentially eliminate the $3,000 premium paid for the hybrid technology."
  • larsblarsb Member Posts: 8,204
    http://www.energy.state.or.us/trans/hybridcr.htm
  • timber104timber104 Member Posts: 24
  • timber104timber104 Member Posts: 24
    Thank you for writing to the State of Connecticut Department of Motor

    Vehicles. The DMV is always working to improve customer service. We hope

    that this process will give you the service you need and answer the

    questions you have.

     

      It is true, Hybrid vehicles are tax exempt. If you give me a fax number I

    can forward additional info to you.

     

    Again, thank you for writing to the Department of Motor Vehicles. If you

    have additional questions, please contact us again at: mail@dmvct.org
  • electrictroyelectrictroy Member Posts: 564
    Maryland's incentive is simple.

     

    No sales tax on hybrids. So you save about $1000 instantly.

     

    troy
  • dw438dw438 Member Posts: 41
    In New York you can get a sales tax refund by filling out a form (AU-11) and sending in separate from your tax return. State says they are three months behind in processing.

    You also can get a credit on income tax by filling out another form (IT-253. Alternative Fuels Credit) and filing that with your income tax forms.

    Go to this link on the NY State tax dept. web site:

     

    http://www.tax.state.ny.us/pdf/memos/Multitax/M04_3.1i_1.1s_2.1c.- pdf
  • timber104timber104 Member Posts: 24
    There is a State by State - Tax, Carpool lane use & other hybrid cars incentives:

     

    http://www.hybridcars.com/incentives.html

     

    local tax and other hybrid incentives

     

    We're doing our best to track hybrid incentives across the country. Please verify exact current rulings with appropriate state or city officials. Hybrid car buyers also qualify for federal tax deductions, and in some states, solo use of carpool lanes.

     

    New York's:

    New York's Alternative Fuel (Clean Fuel) Vehicle Tax Incentive Program offers tax credits and a tax exemption for purchasing new hybrid electric vehicles (HEVs), alternative fuel vehicles (AFVs), and/or install clean fuel vehicle refueling equipment. Purchasers of qualified HEVs are eligible for a tax credit of up to $3,000, depending on the vehicle's fuel economy. To qualify, a vehicle must draw propulsion energy from both an internal combustion engine (or heat engine that uses combustible fuel) and an energy storage device; and must employ a regenerative braking system that recovers waste energy to charge that device, and, for model year 2004 and later, must meet or exceed the California LEV II emission standard. Current production models such as the Toyota Prius and Honda Insight qualify. The maximum value of the incentive is $5,000 for vehicles weighing less than 14,000 pounds (lbs.) gross vehicle weight rating (GVWR). The incremental cost of clean-fuel vehicles is exempt from state sales tax; this exemption expired February 28, 2004. These incentives apply to vehicles and fueling property placed in service by December 31, 2006. For more information, please contact the New York State Energy Research & Development Authority (NYSERDA) at 866- NYSERDA, via email at info@nyserda.org, or visit the Web site at www.nyserda.org. (Reference Senate Bill 4523, 2003)
  • rfruthrfruth Member Posts: 630
    Some companies kick in a few grand too - snip - The latest - and largest - company to begin offering employees incentives to purchase fuel-efficient hybrid vehicles is Stratham-based Timberland, a global leader in the design, engineering and marketing of footwear, apparel and accessories. The company is offering a $3,000 grant for any of its 6,000 employees (700-800 are located in the Stratham headquarters office) to help them get a hold of one of the new hybrid vehicles. Currently offered by Honda, Toyota and Ford, the vehicles combine electric motors and gasoline engines to generate fuel economy ratings in some cases exceeding 50 miles per gallon.

     

    http://www.seacoastonline.com/news/12272004/news/56019.htm
  • dug1dug1 Member Posts: 1
    Does anyone know of any state tax incentives for the state of GA? The only thing I seem to have found is that you can ride in the HOV lane.
  • refieldsrefields Member Posts: 18
    As mentioned above - The Fed kept the 2004 and the 2005 tax deduction for hybrids at $2000. The 2006 deduction is still at $500 though - what it would have been with the steady $500 drop for 2004 and 2005.

     

    Here in New Mexico - no sales tax on the car or any of the accessories purchased with the car.

     

    Also, the Honda Civic Hybrid has an immobilizing anti-theft system as standard equipment so you also get a break on insurance.
  • gagricegagrice Member Posts: 31,450
    For example, the Toyota Prius--America's best-selling hybrid at 30,000 units sold last year--is typically bought by childless couples with an annual household income of $100,000, according to Toyota's own demographic study. The car has become a status symbol among the liberal Hollywood elite. Millionaire celebrities like Cameron Diaz, Leonardo DiCaprio, Larry David, and Jack Black are all proud owners of the Prius and its $2,000 tax break. And this year, Toyota is offering its second hybrid vehicle through its luxury division, Lexus. The Lexus E330 SUV hybrid--already pre-sold to 11,000 buyers--is being gobbled up by Hybrid Liberals making $130,000 a year on average.

     

    With the Lexus SUV and other new hybrid offerings from Mercedes, Honda, and Ford, hybrid sales are expected to more than double this year to 165,000 units in the United States. That means a total federal subsidy of some $330 million to upper-income customers.

    Keith Ashdown, vice president for policy for the non-partisan Taxpayers for Common Sense, however, is skeptical the hybrid tax credit is serving its purpose. "You want tax breaks that alter consumer behavior. This tax break probably isn't working because it's putting money into the pockets of people who would buy this product in the first place." Even with the subsidy, however, auto companies are losing their shirts on hybrids. Since gasoline/electric hybrids use two power sources--a combination of a gasoline engine and an electric motor--they are substantially more expensive than standard cars. Though hybrids typically sell at a sticker price of $3,500 over comparable gasoline cars, manufacturers are not recouping their costs.

     
    The costs put manufacturers in a box. They cannot make money on hybrids, and yet their public relations value among Hybrid Liberals in the press, Hollywood, and elsewhere mean they cannot afford not to. Even GM product guru Bob Lutz, one of the industry's legendary executives and a hybrid skeptic, admits that General Motors' decision not to get into the hybrid business was a mistake.

    We failed to appreciate that Toyota basically treated it as an advertising expense. They said we need these to demonstrate our . . . concern for the environment, capture the imagination of the growing environmental movement in the U.S., and get all those East and West Coast intellectual opinion leaders, movie stars, etc. on our side, which they successfully did. So even if they lose money on it, it's cheap at twice the price."

     
    Whether or not tax credits should be going

    to well-off car buyers, the hybrid subsidy is but a foot in the door of federal efforts to fundamentally alter the auto market. And, despite the blue state concentration of hybrid buyers, it is an effort that transcends party lines.

    Congressman Camp, for example, is a self-described conservative Republican. He sponsored the hybrid tax break, his spokesman Eastman explains, because "Congress is saying now is the time to transition to sources that are eco-friendly and lower our dependence on foreign oil."

     

    http://www.weeklystandard.com/Content/Public/Articles/000/000/005- - /176pszws.asp
  • muxdemuxmuxdemux Member Posts: 1
    That article has to be one of the most ludicrous, unbelievably inane pieces of biased drivel to ever be published in a newspaper. The Toyota Prius accounts for a greater percentage of the hybrid market than all other manufacturers combined. The sheer fact that it has a sticker price of somewhere around $20,000 makes his reference to it being a vehicle for the rich completely moronic. If the rich were all driving $20k cars, we'd be a far less pompous society.
  • gagricegagrice Member Posts: 31,450
    If the rich were all driving $20k cars, we'd be a far less pompous society.

    Welcome to the forum. You may have a point. If we were all driving the same car it would make things easier. Just like kids in school wearing uniforms has been a good thing to many parents. I think the reference to the Prius being bought by the wealthier was started by Toyota. They advertised that the car was mostly bought by people making $100k-$150k per year. Hardly the wealthy of this nation. They also targeted the Hollywood green activists to promote the car. Another thing to consider is that through most of 2004 it was difficult to find a dealer that was not marking the car up past the MSRP. Plus adding a lot of charges just because the car was in demand. I think by the end of this year you will find them for a decent price. That being said I doubt that many that have bought hybrids did so based on that $2000 tax deduction.
  • larsblarsb Member Posts: 8,204
    The average car buyer's income is $89K - so a Prius buyer's average being $100K is not that big a deal....11% difference.....big whoop......Ask any Prius owners on this board if they are in the "over $100K" category....
  • electrictroyelectrictroy Member Posts: 564
    I don't know. I think the article writer has a good point:

    IF the average prius owner income is $100,000 a year...
    Then why are we giving them a tax break??? Tax breaks should go to the poor, not the upper classes.

    Perhaps if the tax break was based upon income... i.e. You get a $2000 hybrid deduction, only if you're income is low.

    troy
  • gagricegagrice Member Posts: 31,450
    I think that was the point the writer was making. People that make $100k or even $89k per year are not that needy that paying $500 less on their taxes will help make the decision. First it has been established that buying a hybrid is not as much an economical purchase as it is a environmental purchase.
  • silhouette9silhouette9 Member Posts: 1
    With gas prices climbing it is now an economical decision as well - i expect to save over $2000 a year in gas alone - nevermind my future 2005 tax break ;-) -- I'm not sure I understand the whining about the income of the consumers. I will admit I meet the profile, but only just. A new technology cannot afford to sell too cheap or it cannot sustain any momentum. It is basic economics of supply and demand coupled with a new technolgy. At first the cost will be inflated because of a limited supply; if successful, the price will be inflated because of demand, this will prove the market and the price will slope off (or not climb as steeply) as the market becomes more infiltrated and new competitors arrive in the market place; and if you want to look a little farther ahead, you will see this same pricing and demand pattern repeated with the upcoming fuel cell vehicles (which, btw, will drive the price of hybrids down). - I'll stop the ecomomics lecture and ask again, why the complaining about consumers' income bracket when this is needed in order to make a desireable product successful? - I came here looking for the tax break info, but couldn't help responding to this somewhat intriguing thread ..
  • gagricegagrice Member Posts: 31,450
    why the complaining about consumers' income bracket when this is needed in order to make a desireable product successful?

    Not as much complaining as questioning the fairness of it. Why should a person buying a Hybrid Accord that gets 30 mpg, get a tax break when someone buying a VW Jetta TDI that gets 48 mpg, does not get the tax break. Or anyone buying a SULEV II or PZEV vehicle should be eligible. I put it in the same calssification as the tax break on Hummers and over 6000 vehicles that was available in 2003. Not that there are not hundreds of unfair taxes and tax breaks.

    PS
    You must drive a lot of miles. That $2000 you are planning on saving in a year would take you 40,000 miles in a Prius or HCH at todays gas prices.
  • tomslycktomslyck Member Posts: 70
    Speaking for us wealthy people....tax breaks are always used when the government wants to promote something (e.g. home ownership). The fact that the government wants to promote something that saves gas and has less emissions doesn't bother me. The community will benefit by reducing the demand for gas and helping to clean up the air. (Does the deisel improve air quality?)

    My wife is an elementary school teacher in the inner city of Los Angeles. She plans to put on her diamonds and fur coats and then drive it to her job teaching gang member wanna-bes. A break on the taxes won't hurt. This summer we might drive it to Alaska to hunt baby seals.
  • gagricegagrice Member Posts: 31,450
    The community will benefit by reducing the demand for gas and helping to clean up the air.

    A bicycle does a lot more to help the environment and they do not get any tax breaks. Why pick out one small item when many things help as much. I don't get any breaks for planting all the trees on our property that suck up the CO2 put out by all cars including the Hybrids. I could go on. The point is that it looks like more corporate welfare to me. Without that little break maybe people would negotiate a little harder and get the prices of hybrids down where they belong. Our tax money is just ending up in Japan with that incentive.
  • larsblarsb Member Posts: 8,204
    quote gagrice-"A bicycle does a lot more to help the environment and they do not get any tax breaks."-end quote

    There are not "different types of bicycles" which pollute less or more. There is that distinction in automobiles." Most people cannot commute on bikes, but they can choose a commuter car which is more or less efficient. Why not urge people to buy the cleaner, more efficient cars? Different rules can apply. :)

    quote gagrice-"The point is that it looks like more corporate welfare to me."-end quote

    I am not a corporation. Toyota or Ford get no money for the tax break I EARNED by spending more upfront for a cleaner, more efficient car. I EARNED that tax break, they did not, therefore I get the tax benefit, not them. :D

    quote gagrice-"Our tax money is just ending up in Japan with that incentive."-end quote

    How, exactly, does our "tax money" end up in Japan? I fail to make that connection..... :D
  • gagricegagrice Member Posts: 31,450
    How, exactly, does our "tax money" end up in Japan? I fail to make that connection

    Very easy. It is a justification to pay more for the vehicle. Without that incentive some would wait and try to get the car for less money. If one person pays $20000 for his hybrid and with the understanding he will get about $500 back on his taxes, and buyer 2 waits until he can buy the car for $19,500, they both paid the same price. Buyer number one gave his $500 tax incentive to the automaker. I think it is bad policy just as I felt writing off the over 6000 lb vehicles in one year was bad policy. They are write-offs for the wealthy. Did you get the write-off on your used HCH? Some fat cat got it and you got the car a bit cheaper. The tax payers subsidizing the automakers.
  • railroadjamesrailroadjames Member Posts: 560
    Sometimes I sense a general attitude of some "threaders" that have a bone to pick with hybrid owners (Prius in particular). We don't all make 100 thousand bucks. Where ever that came from was over stated and an exaggeration. If you wanna believe that ....go ahead, if it'll give you some kind of satisfaction. Why..I don't know. I make 33K on retirement and I have total satisfaction in the Prius.
    As for tax breaks...Why not give an incentive for people that take the challange to improve our plight when it comes to being "green & thrifty" instead of "hoggish & foolish."
    Sometimes I sense Prius envy! "If I can't have one I'll sabatage them!"
  • gagricegagrice Member Posts: 31,450
    We don't all make 100 thousand bucks.

    I am sure all Prius owners don't make $100k to $150k. It was Toyota bragging on the demographics of the Prius, not any of the posters. It is not just Prius buyers that I feel should not get the incentive. It is the Hummer buyers that got that full write-off in one year that was not right either. It had the desired affect in that they sold lots of big PU trucks and SUVs. On a $65k SUV it was a $24k tax savings in one year instead of spread out over 6 years. If you had a business you were crazy not to buy a new vehicle.

    Now, how does a HAH benefit the environment anymore than a Toyota Corolla that is SULEV II rated and gets 36 mpg combined? The Corolla puts out less GHG than the Accord Hybrid. It is more environmentally friendly yet the HAH fat cat buyer gets the tax incentive and the lower income Corolla buyer does not. It is not equitable and should either be administered fairly or done away with. It is not Prius envy, it is wanting things done fairly. There are 13 cars that are greener than the HAH and only three get the incentive. I have talked to my Congressman about it. Maybe you should also. Giving tax incentives to people that buy cars that are clean and efficient may have merit. Set a mileage and emissions standard and any car that fits in that category is eligible. The fact that hybrids & diesel cars do not pay their fair share of the road tax is being assessed. Look for legislation in the future that is not that friendly toward the high mileage cars. You may be trading your Prius for a Hummer :-)
  • railroadjamesrailroadjames Member Posts: 560
    When hell freezes over seems appropriate to your suggestion on buying a ..."Testosterone Buggy". Hummers are like Harley Riders (most of which think "if I can annoy everyone with my obsessivlely loud pipes, then I've achieved my testosterone rush." Hummers just do it with SIZE & Weight & Gas Guzzling.
    Any legislation to penalize hybrids is ludicrous. Simply by weight they do little if any harm to roadways as opposed to the forementioned monsters and the like (Suburbans).
    YOU SAY: "Giving tax incentives to people that buy cars that are clean and efficient MAY have merit"

    I SAY: Thats the whole point to this forum....Bringing back some sense of focus to what we have as a RESPONSABILITY to what we drive as fossil fuels become critical TODAY. You have noticed that problem..haven't you? I HOPE!!
    Manufacturers frantically slash prices in an effort to unload the gas guzzlers with all kinds of gimmics. When they should have had some sense of fore sight to the problems that were just around the corner.

    Last Point: Price of hybrids have been an arguable point to some. I say you have to pay the piper when it comes to new technology. Toyota gave great effort to producing a hybrid that was still affordable to most car buyers. Now it's up to the government agencies to get off their stagnant fannys and help steer america down the path of "GREEN & EFFICIENT".
    Gas Guzzlers= :lemon: 'S
  • gagricegagrice Member Posts: 31,450
    ."Testosterone Buggy". Hummers

    I believe it was you that pointed out that the majority of Hummers were driven by the ladies. I don't know but maybe they are all feminist? hmmmm

    Before you put a crown on Toyota you should remember that they are as we post building a new Tundra plant in San Antonio. They have yet to start building a Prius plant in the USA their largest market for the Prius. They plan to double the sales of Tundra PU trucks to 250k units per year in the USA. I would say they are no different than the Big 3 trying to sell the high dollar vehicles. If they have inventory left over at the end of the MY they will unload them just as you are seeing GM & Ford doing. In the meantime they make Big Bucks on those vehicles. How many of the 1,800,000 plus full size PU trucks did GM & Ford get a big profit from? That may be all that is keeping them afloat beside their banking interests.

    Back to incentives. If the Feds offer a fair and equitable tax break for any car that is environmentally friendly that would be OK. I don't think it would sway anyone to buy one that was not already of a mind to do so. It did not change my mind on my latest vehicle purchase. The only thing that would have brought me to the hybrid table is something that I would consider useful. Toyota and Honda started out that direction and completely veered off into street racer & hot rod SUV land. There are too many street racers now. We did not need more of them. I suppose you are going to tell me that the RX400h is a great vehicle for the average American Family? Right!
  • railroadjamesrailroadjames Member Posts: 560
    O.K. Gary, I'll admit there excesses in the industry (even Hybrids) but the point is ...Honda & Toyota started and led the way inh the hybrid field.

    As to all the women driving Hummers...Well really now! Who do you think bought them? He's driving the "beater" to work while his honey gets to putt-putt around town. It reminds me of a humorous thing I once saw while attending college in Terre Haute... A little old(musta been 80+) gray haired lady driving a slick red-hot Corvette(convertable no less). Nothing wrong, mind you, just unique and totally out of sorts.

    Are Toyota and Honda getting it right? I think so. They will incorperate the "new technology of hybrids" into their full line eventually or most of it.

    Getting back to incentives I would hope that GREEN & FUEL EFFICIENT deserve their proper due.
  • PF_FlyerPF_Flyer Member Posts: 9,372
    Disagreement on a topic is fine, but avoid letting it get personal please. There are some tell-tale signs in the last couple of posts that things are headed in that direction. You're generally not going to "prove" anything here, and getting the opposing view to change their mind rarely happens. Sometimes it comes down to agreeing to disagree and moving on.

    Thanks for your participation and cooperation!

    PF Flyer
    Host
    News & Views, Wagons, & Hybrid Vehicles
  • gagricegagrice Member Posts: 31,450
    Disagreement on a topic is fine

    I think raliroadjames and I are closer to agreement than our posts sometimes would seem. I am sure he is someone I would enjoy having dinner with.
  • PF_FlyerPF_Flyer Member Posts: 9,372
    Just looks a bit different from the outside at times! :)
  • railroadjamesrailroadjames Member Posts: 560
    I agree with Gary. We'd probably enjoy sliders @ White Castle or maybe I'd even splurge and by dinner @ Olive Garden with all that extra $$$$ I save on gas with my Prius.
    We"ll keep you happy though and remember the golden rule here @ our favorite forum.
    By the way, Bob. How come you didn't jump on the "new" Altimas the last 2 yrs? They are so sharp! They're definitly one hot lookin car from Nissan. Maybe your considering a hybrid? Huh? Tax incentives luring you maybe?
    Railroadjames(summer's here...enjoy the ride) :shades:
  • cjminnccjminnc Member Posts: 4
    I am very interested in getting a Prius when my current car, a CRV goes off its lease in August. I was wondering if anyone knows if it is possible to get the $2000 tax deduction if I lease a Prius or is it only if you buy one?

    Thanks,
  • electrictroyelectrictroy Member Posts: 564
    "Speaking for us wealthy people....tax breaks are always used when the government wants to promote something (e.g. home ownership). The fact that the government wants to promote something that saves gas and has less emissions doesn't bother me. The community will benefit."

    .

    The money could be more wisely spent giving tax breaks to the... shall we say "less fortunate" members of our community. THEY are the ones who need to be "promoted", not the bankrolls of the wealthy corporations.

    Also, it appears the Hybrids will sell just the same without the tax breaks. Every hybrid made is quickly sold.

    troy
  • Kirstie_HKirstie_H Administrator Posts: 11,148
    Is the world coming to an end? You and I agree! :surprise:

    Generally, tax incentives are just that - they are used to promote a certain behavior that, without the incentive, might be less attractive. In this case, the behavior we're talking about is purchasing a "greener" vehicle, which would (allegedly) be a less attractive proposition were it not for the tax incentives.

    However, with or without incentives, hybrids are flying off the shelves. So why incentivize this behavior? Why not invest the incentive money in new technology, improving existing technology, or figuring out ways to speed up production to meet demand?

    Alternatively, we could change the name of the federal $$ awarded to "bonus" rather than "incentive."

    kirstie_h
    Roving Host
    Host, Future Vehicles & Smart Shopper discussions

    MODERATOR /ADMINISTRATOR
    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.
    Share your vehicle reviews

  • SylviaSylvia Member Posts: 1,636
    This discussion is about the credit and incentives and letting people ask questions about them. Let's not get into salaries, etc.
  • SylviaSylvia Member Posts: 1,636
    You probably want to ask in the Tax Credits / Incentives for Hybrids discussion as well.
  • backybacky Member Posts: 18,949
    The federal tax code on this is clear that the vehicle must be your "property". On a leased car, you are not the owner of the "property"--the lessor is.

    Tax instructions available from a link on this page:
    http://automobiles.honda.com/models/model_overview.asp?ModelName=Accord+Hybrid

    Many other references state that you must be the "original owner" of the vehicle. This is not explicity mentioned in the tax code, but could be implied by the wording regarding "property". To be sure, you might want to consult the IRS or an attorney.

    Interesting, however, that there is a tax break in Colorado that can be transferred from the leasing company to the lessee.
This discussion has been closed.

Helpful Tools

Most popular vehicles