• Apr 6, 2006

Looking for an easy tax credit? Look no further than the U.S. tax credits for hybrid vehicles. While the program's days are numbered, our friends over at Treehugger tell us that the program isn't extinct yet.

60,000 vehicles is the magic number of hybrid each manufacturer can sell and still have buyers net a tax credit of up to $3,400. Only Toyota is close to that unit total, with the expectation that they'll hit it later this fall. Honda may not hit it this year after having sold just over 40K, and with only 3,475 Ford Escapes having found their way off the lot, there's no immediate fear that Ford will hit that 60K in the near future.

[Source: Treehugger]



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    • 1 Second Ago
  • 4 Comments
      • 8 Years Ago
      Actually, you are guaranteed to get the tax credit as long as you purchase a hybrid before June 30, regardless of how many hybrids any particular manufacturer has sold to that point (assuming you're not affected by the AMT). See Energy Policy Act of 2005, Subtitle D, Sec.30B(f) for details on the phase-out of the tax credit.
      • 8 Years Ago
      Well, the whole point of the tax credit was to help these vehicles gain public acceptance. Once you've sold 60,000 of something, it's pretty safe to say that the public has warmed up to it.
      • 8 Years Ago
      I include these credits at http://www.truedelta.com when a hybrid is priced out.

      My first thought upon seeing the 60,000 unit cap was "nice way to punish Toyota for doing so well with these." I'd certainly be less inclined to buy a Prius after the $3,150 credit goes away. It'd be like buying a TV after the $300 rebate is no longer available, times ten.

      The Camry Hybrid is priced low even before the credit. After it, the hybrid makes more financial sense than the regular Camry. After adjusting for feature differences (but not the engines), the Hybrid is about $905 more than the four-cylinder XLE. That's a steal for the Hybrid's extra power and fuel economy.

      Of course, that's MSRP to MSRP. Especially with the tax credit boosting demand for an already hot product the gap in actual transaction prices will be broader.

      In the end, this credit helps stimulate demand for the weaker players in this segment. But it might unfairly penalize Toyota even as it enables Toyota dealers to charge more for the first 60,000 cars. Could get crazy.
      • 8 Years Ago
      Hmmm. Mercury Mariner hybrid.....