They are going to have to cut the costs or the sales of hybrids will most likely wane due to operation costs of gas vs hybrid and right now, gas is gettin pretty "cheap" again.
"
Paying for popularity
The credit-cut clock started ticking in June for Toyota, the acknowledged leader, primarily due to the popularity of its Prius model.
That month the automaker sold its 60,000th hybrid. That included not only the Prius, coveted by celebrities and not-so-famous drivers alike, but also versions of the automaker's Camry, Highlander and luxury Lexus models. In total, eight Toyota/Lexus hybrids are credit certified.
Under the credit guidelines, the tax break will be phased out over the next five calendar quarters. In the short term, that means if you buy an eligible Toyota hybrid on or after Oct. 1, your tax credit is cut in half. The longer you wait, the more your credit is reduced, until it disappears on alternative fuel Toyotas purchased on or after Oct. 1, 2007.
This table shows what the buyer of a Prius, which at $3,150 offers the largest credit available under the new law, can expect in coming months.
Tax credit events and deadlines for Toyota Prius buyers
- Jan. 1, 2006: Tax credit becomes available for Prius hybrids purchased on and after this date (through Dec. 31, 2010). Available credit: $3,150
- June 2006: Toyota sells a total of 60,000 hybrids (all models). Available credit: $3,150
- July 1, 2006 through Sept. 30, 2006 (first quarter after sales target reached): Prius purchased during this period still eligible for full credit. Available credit: $3,150
- Oct. 1, 2006 through March 31, 2007 (second and third quarters after sales target reached): Prius purchased during this period eligible for 50 percent of original credit. Available credit: $1,575
- April 1, 2007 through Sept. 30, 2007 (fourth and fifth quarters after sales target reached): Prius purchased during this period eligible for 25 percent of original credit. Available credit: $787.50
- Oct. 1, 2007 and beyond: No tax credit allowed for Prius purchases. Available credit: $0
And while the table uses the Prius' dollar amounts, the percentage limits apply to all Toyota or Lexus hybrids bought during the five post-60,000-sales quarters. (In other words, dollar amounts vary with the model.)"
http://biz.yahoo.com/brn/060921/19425.html?.v=1
