Does anyone know anything about the IRS cutting off tax credits for 2006 after so many thousand are given out?

 

Its in most descriptions of the law- you can search it here or google it. The credit phases out the quarter after 60K units of the vehicle have been sold.

 

Check here:

https://www.greenhybrid.com/discuss/...&postcount=108

and here:

https://www.greenhybrid.com/discuss/...&postcount=109

 

It phases out after the manufacturer has sold 60,000. So in the case of Honda add up the Civics, Accords, and Insights. But altogether Toyota sells about four times as many Prius as Honda sells all hybrid models, so the credit for Hondas will last much longer - well into next year.

 

So how can I be sure that I'm in the group receiving the credit? (I've not purchased the vehicle yet, looks like mid-June).

 

If you are buying a Honda you will definitely get the credit if you buy this year! If it's a Toyota, I don't know of a way to determine if you fall in the group - although there are sales figures published monthly that should allow you to figure that out (or ask your dealer for that hard data). Honda is only planning to produce about 30-35K Hybrids (Acord, Civic, Insight) combined this year so there is no way Honda will reach their quota of 60,000 this year. EACH manufacturer can sell 60K before the tax credits phase out (so it will be around much longer with Honda, Ford, GM than it will be with Toyota)

Eric

 

Since the credits continue for one quater after the manufacturer reaches the 60000 mark both Honda and Toyota will be fine (credit wise) at least through September (and as mentioned before Honda won't reach the 60000 limit until well into 2007). It should be noted that for the credit you have to actually purchase the car, not just get on a waiting list.

 

From http://www.fueleconomy.gov/feg/tax_hybrid_new.shtml

The credit will be phased out for vehicles offered by a given manufacturer once that company has sold a total of 60,000 eligible hybrid and lean-burn vehicles starting from the beginning of 2006. Manufacturers must report consumer sales to IRS, and IRS will announce when a manufacturer has exceeded this sales figure.

Beginning with the second calendar quarter after the calendar quarter in which the manufacturer sells 60,000 vehicles, the credit will be 50% of the full credit amount. This part of the phase-out will last for two calendar quarters.

For the next two calendar quarters, the credit will be 25% of the full credit amount. The incentives for vehicles by that manufacturer will end thereafter.

 

anyone else heard anything on the tax credit??? Do we just wait until next tax filing or does the gov't plan on doing something?!!

 

It is my understanding that the IRS is working on a form to be used to claim the tax credit. I have not heard how the form is coming along though.

Mark