Toyota Announces 2007-Model Year Hybrids Qualify For Federal Hybrid Tax Credit Amounts
The 2007-model year Toyota Prius, Highlander hybrid, and Lexus RX 400h vehicles have received Internal Revenue Service (IRS) approval and qualify for the same credit amounts as the model-year 2006 versions of these vehicles, reported Toyota. Both 2006 and 2007 Toyota and Lexus hybrids purchased on or after Oct. 1, 2006 are subject to reduced federal hybrid tax credit amounts, as Toyota is the first manufacturer to reach the 60,000 cumulative hybrid sales threshold.Purchasers of the Toyota Prius, Camry hybrid, and Highlander hybrid may currently qualify for a federal tax credit. Toyota Prius models purchased on or after Jan. 1, 2006 and before Oct. 1, 2006 may qualify for a tax credit of $3,150. Highlander hybrids and Camry hybrids purchased on or after Jan. 1, 2006 and before Oct. 1, 2006 may qualify for a tax credit of $2,600.The reduced tax credit amounts effective Oct. 1, 2006 are $1,575 for the Prius and $1,300 for both the Camry Hybrid and the Highlander Hybrid. Toyota Prius vehicles purchased between Apr. 1, 2007 and Sept. 30, 2007 may qualify for a tax credit of $787.50, while Highlander hybrid and Camry hybrid may qualify for a $650 tax credit. Prius, Highlander hybrid and Camry hybrid models purchased after Sept. 30, 2007 will not qualify for a tax credit based on the current federal income tax laws.Two Lexus models, the RX 400h hybrid luxury utility vehicle and the GS 450h hybrid luxury sport sedan, currently may qualify for a federal tax credit. RX 400h models purchased on or after Jan. 1, 2006 and before Oct. 1, 2006 may qualify for a tax credit of $2,200, while the GS 450h purchased during the same time period may qualify for a tax credit of $1,550. For vehicles purchased between Oct. 1, 2006 and March 31, 2007, RX 400h models may qualify for a tax credit of $1,100 and the GS 450h may qualify for a $775 tax credit.RX 400h models purchased between Apr. 1, 2007 and Sept. 30, 2007 may qualify for a tax credit of $550, while the GS 450h may qualify for a $387.50 tax credit. All RX 400h and GS 450h models purchased on or after Oct. 1, 2007 will not qualify for a tax credit. Certification has not been established for the LS 600h L, which goes on sale in the spring of 2007.To qualify for the full, 100-percent federal tax credit, the customer must take delivery of the vehicle on or after Jan. 1, 2006 and prior to Oct. 1, 2006. The delivery of the vehicle prior to Oct. 1, 2006 should demonstrate that the "purchase" of the vehicle has been completed before the effective date of the hybrid tax credit reductions. The hybrid must be purchased; leased vehicles will not qualify. Consumers who must pay the federal alternative minimum tax are subject to restrictions, including up to full elimination of the benefits from the hybrid tax credit. There are several other requirements described under the hybrid sections of Toyota.com and Lexus.com.All persons considering the use of this important new hybrid vehicle tax credit should consult with their own tax advisors to determine the specific amount of benefit, if any, that they may be able to claim on their federal income tax returns. Tax advisors may also have further information on the many state and local tax incentives that may be available to hybrid vehicle owners.Consumers considering a purchase of a Toyota or Lexus hybrid should refer to www.irs.gov for further hybrid tax credit information.