It's official, the IRS has discontinued the tax credits for anyone who bought a hybrid after October 1st from Toyota or Lexus. You can still get the full tax credit if you buy from Ford, GM, or Nissan, although you should be aware the tax credit varies widely depending on which car you buy. The amount (if any) also depends on if you qualify for the hybrid car tax credit.
Toyota sold over 60,000 hybrids by June of 2005, which initiated the slow phase out of the tax credit for anyone buying from Toyota. Honda has just hit the 60,000 limit which will set them off into the phase out next year. Meanwhile Ford and GM have very little chance of getting there any time soon.
If you qualify, but don't know how to claim your tax credit, here's the form you need to fill out come tax time.
The amount you can claim depends on the vehicle and when you bought it:
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
- 2006 Highlander 4WD Hybrid — $650
- 2006 Highlander 2WD Hybrid — $650
- 2006 Lexus RX400h 2WD — $550
- 2006 Lexus RX400h 4WD — $550
- 2007 Camry Hybrid — $650
- 2007 Lexus GS 450h — $387.50
Beginning October 1, 2007, taxpayers who buy a Toyota hybrid cannot claim the related tax credit.BTW, I'm not a tax professional and wouldn't even dream of telling you the ins and outs of the IRS. If you're confused, consult with a professional (or buy TaxCut).