Hybrid Tax Credits Running Out

Due to an IRS regulation, people seeking the maximum tax credit when they buy a hybrid car will be in for a shock if they don’t buy soon. After Sept. 30, buyers will only get half of the tax credit they would have been due if they’d bought a Toyota or Lexus hybrid before that date. Blame Toyota for selling 60,000 hybrid vehicles already in 2006. The cut takes effect at the end of the quarter during which that 60,000th vehicle was sold. 

If you’ve been eyeing that Toyota Prius ($3,150 tax credit), Camry Hybrid ($2,600), Highlander Hybrid ($2,600) or even the Lexus GS 450h ($1,550) or RX 400h ($2,200), buy before the end of September or those credits are halved. This doesn’t impact Honda’s Civic and Accord hybrids or Ford’s Escape Hybrid because those automakers haven’t sold 60,000 hybrid vehicles yet this year. 

[Hybrid Hustle, AutoWeek]