Toyota Hybrid U.S. Tax Credit Runs Out

Washington DC November 9, 2007; The AIADA newsletter reported that buyers of Toyota Motor Corp. hybrid gasoline-electric cars who are looking for a break on their income taxes are now out of luck.

The IRS said Thursday that only Toyota and Lexus hybrids purchased before Oct. 1 are eligible for a tax credit intended to encourage sales of the fuel-efficient cars, because the company has hit a legal cap on the credit.

The federal tax credit for new hybrid vehicles phases out starting when after a car maker has sold 60,000 hybrid or other fuel-efficient vehicles. Toyota and its Lexus luxury division hit that limit last summer. After that, the tax credits were halved.

According to BusinessWeek, tax credits of up to $3,000 are still available for hybrids made by Ford, GM, Honda, and Nissan. Customers who bought one of five Toyota and Lexus hybrid models between April 1 and Sept. 30 are eligible for tax credits ranging from $450 for the $104,000 Lexus LS 600h L to $787.50 for the Prius, which sells for $20,950.