Hybrid Tax Credit 2006

[carnutfl]

I'm taking delivery of my Highlander Hybrid on Monday. I've been reading the IRS bullitins on the Tax Credit and want to make sure I get the proper documentation. The procedure is different than 2005, since they are limiting the tax savings to the first 60,000 cars. The information I read says Toyota needs to give the customer a document answering 16 points including your name, tax identification number(SS#), and the $ tax credit the car qualifies for.

Has anyone taken delivery this year and what did your dealer give you?

[TUCORE]

Took possession of my Highlander Hybrid in January 2006. Dealer had no clue (and still does not) as to what the tax procedure will be. I believe Washington (Foggy Bottom) is still working on the details....

[nomorebenz]

As an accountant, I can tell you that the IRS works on an honor system. Currently (May 2006) any certified Hybrids purchased will qualify for the federal credit. The HiHy has a maximum credit of $2,600. You claim this credit using form 8910. In the event they want proof, there are four main things to prove - 1) When you bought the car 2) You registered the car for use 3) You didn't buy the car to resell 4) You used it mostly in the U.S.

I would say you'd be more than safe with a certificate of sale from the dealer in your name, registration in your name and insurance in your name.

As for th 60,000 limit. We have at least until Sept 2006 to buy and qualify unless the IRS changes the rules....

[nomorebenz]

Toyota reported Hybrid Sales of 41,779 for the first quarter (March 2006).

[charlie_Algerno]

The hybrid Tax credit is based on time not on numbers. ONce Toyota hits 60k units sold then you still have until the end of the next quarter to buy a hybrid, take delivery, and then apply for the credit. You should just need all you purchase information to get the credit with the IRS.

[nomorebenz]

Toyota will probably reach 60,000 units in the second quarter which means the Full credit is available for purchases made through the third quarter (Sept 2006). 50% Credit for purchases made between Oct 1 2006 and March 31 2007. 25% for purchases made between Apr 1 and Sept 30, 2007. No credit after that.
Please consult your tax professional regarding the credit.

As of this edit, Toyota has reached 60,000 units.

[JS281]

Just read the IRS rules on the tax credit for hybrids, and I am confused. So we just purchased a Hybrid 06' 2WD Highlander in Septermber of 06' (the 3rd to be exact). I figure since Toyota has already hit the 60k marks at the time of the previous post (June 06?) what would that qualify me for?

Just curious.

Thanks,

[nomorebenz]

A purchase of 2006 HiHy in September would still qualify for the full credit of $2,600. Purchases in October and so on will have reduced amounts.