Several more 2007 Toyota models have been certified by the Internal Revenue Service to qualify for the hybrid tax credit enacted by the Energy Policy Act of 2005.
The certified vehicles are the Toyota Prius, Toyota Highlander Hybrid, and the Lexus RX 400h 2WD and 4WD vehicles. The tax credit for hybrid vehicles applies to vehicles purchased on or after Jan. 1, 2006, and may be as much as $3,400.
The hybrid vehicles recently certified by the IRS and their full credit amounts are:
• 2007 Toyota Prius, $3,150;
• 2007 Toyota Highlander Hybrid 2WD and 4WD, $2,600; and
• 2007 Lexus RX 400h 2WD and 4WD $2,200.
The full credit amount for these Toyota and Lexus vehicles was available to qualifying purchasers through Sept. 30, 2006.
The credit replaced the tax deduction of $2,000, which was previously allowed for taxpayers who purchased a new hybrid vehicle before Dec. 31, 2005, for the clean-burning fuel deduction.
The credit for otherwise-qualifying vehicles begins to phase out in the second calendar quarter after the quarter in which the manufacturer sells its 60,000th qualifying vehicle. Toyota had reported sales of 88,610 qualifying vehicles (41,779 in the quarter ended March 31, 2006, and 44,831 in the quarter ended June 30, 2006).
The phase-out period for Toyota vehicles began Oct. 1, 2006.
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