The Federal Tax Credits Blog

Posts Tagged ‘prius’

Question: Will there be a tax credit for the Toyota Prius in 2008?

The tax credit for the Toyota hybrids has expired and I am looking into buying one and I could not find out if Congress is going to offerer another credit or dedection.

Answer: http://www.irs.gov/newsroom/article/0,,id=157557,00.html

http://www.toyota.com/prius/tax.html

The US Federal income tax credit for Toyota hybrids ran out for vehicles purchased on/after Oct. 1, 2007. Amount for purchases of New (not used, nor leased) Toyota Prius before that date can be found at the above links. (The IRS hasn’t yet certified the amount for the 2008 Prius purchased before Oct. 1, 2007, as of my typing…)

It’s always possible that Congress may decide to extend the credit, implement a new one, or implement a new tax deduction… But I haven’t heard any rumblings about such yet.

Depending on where you live, you may qualify for a state income tax credit or deduction, or reduced sales tax, though.

http://autos.groups.yahoo.com/group/toyota-prius/links/Financial_000963256550/

Electric cars searching for a place to plug in

A line will start forming this week for people wanting to buy mass-produced electric cars, but the vehicles’ rollout could be hindered by a shortage of Bay Area charging stations. Nissan Motor Co. Ltd. will begin accepting online reservations for the fully-electric Leaf vehicle on Tuesday for a…

Question: How do I file for a tax credit on a hybrid car I bought in Jan. 2006?

I purchased a 2006 Toyota Prius in January 2006 and would like to take the tax credit on my 2006 returns……What form do I need to file and would the sales contract suffice as verification that I purchased it?

thanks!

Answer: Use form 8910 to claim the credit.
You can get this from the www.irs.gov website.
I haven’t heard about verification but like most other items on a tax return you would have to show proof of purchase and a canceled check and the sales contract would suffice for that.

Tom Schey: Owning Up to Our Oil Addiction

We, vain Americans, blame BP and all the others out there, but it’s our addiction providing our neighborhood dealer with the incentives. Our dependency on oil is an addiction we need to break.

Question: Hybrid tax credit?

How do i get the 2007 Prius tax credit?
I bought two prius one in Feb and the other one in March 2007. I am currently out of the US and i’ll have to do it myself, can you please help me with what forms do i need and what needs to be attached to it. I’ve read several different things online, but nothing concrete and for 2007. If you’ve done it can you please let me know all the details? In case i decide not to ask for that tax credit this year can i do it next year?Thanks

Answer: http://www.toyota.com/prius-hybrid/faq-tax.html

http://www.irs.gov/newsroom/article/0,,id=157557,00.html

http://www.irs.gov/newsroom/article/0,,id=157632,00.html

http://www.fueleconomy.gov/feg/tax_hybrid.shtml

The vehicles have to have been purchased (or financed) new, and not used or previously owned. They cannot be leased (the leasing company is the owner so they get the credit, not you). Also, they have to be predominantly used in the US.

The amount of the available credit for the Toyota Prius depends on the date of purchase. (The hybrid vehicle income tax credits had a sunset/phaseout provision, based on the date after the calendar quarter that a manufacturer sells 60,000 hybrids since the start of the credit (Jan. 1, 2006).) For a Prius bought between 10-1-06 and 3-31-07 like yours, the available credit is $1575 for each Prius purchased. However, the amount can be reduced if you are hit with AMT…

there is a letter-writing campaign to remove the sunset/phaseout provision on the hybrid vehicle tax credit: http://ucsaction.org/campaign/02_01_hybrid_tax_credit

If you are an individual claiming the credit, you will need to fill out IRS Form 8910 Alternative Motor Vehicle Credit: http://www.irs.gov/pub/irs-pdf/f8910.pdf (You will also have to do an AMT calculation as well, which means that you’ll also have to file Form 6251 Alternative Minimum Tax — Individuals, http://www.irs.gov/pub/irs-pdf/f6251.pdf , and that may reduce or even eliminate this credit on you…) This will then go on your Form 1040.

If for a business, you will need IRS Form 3800, General Business
Credit: http://www.irs.gov/pub/irs-pdf/f3800.pdf

You can only take the credit in the tax (calendar) year that you purchase the new hybrid, so if purchased in 2007 you can only file it on your 2007 taxes. You cannot roll the credit over to another year. You could always file a 2007 1040X amended return later, buy why file twice for the same year if you don’t have to?

Your individual state may also offer state tax credits or deductions as
well, so you should also check in with your individual state.

http://www.eere.energy.gov/afdc/progs/tech_matrx.php

http://go.ucsusa.org/hybridcenter/incentives.cfm

Some more links can be found here:

http://autos.groups.yahoo.com/group/toyota-prius/links/Financial_000963256550

(and note that I am not a tax professional, so if you have further questions I suggest that you consult with one!)

Hang up and drive, or else face a fat ticket

A new state law means that on Jan. 1, people who want to drive, dial and talk must use a hands-free accessory

Hybrid Tax Credit