Can i get a tax break on a Toyota Prius 2007 model? If yes then how do i get it?

Question

At this time of the year, none of the dealerships have any 2006 models left so i have thought of buying a 2007 model. Can i get a tax break for the next filing period in march 2007 or i will get on for March 2008 year?
I went to a website which lists something about this but did not make a whole lot of sense to me. You can refer to it.

http://www.bankrate.com/brm/itax/tips/20030219a1.asp?caret=14

Thanks

Answer 1

Yes, there is a federal tax break and some states like Colorado also offer tax incentives for purchasing these types of cars.

The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with a tax credit. A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006.

Here are some helpful links.

Answer 2

the 2006 model was recalled, but surprisingly Toyota had the most recalls of any manufacturer, followed by Ford. A PZEV (partial zero emessions vehicle), like the Prius does get a tax-break. In the long run its not worth it because it would take the average driver 20 years to break even with the money they saved on gas, not including the replacement parts NOT covered by the warranty

Answer 3

You can right now but not in the near future. My gf's aunt got 2,000 break when she bought her's brand new and now they are going to due away with it once a certain amount of hybrids hit the road which they are almost at that number. Wanna buy hers she is going to sell it soon.

Also remember, tax break is for new purchase only and a one time thing.

Answer 4

Yes, there is a tax break, for more information - visit: www.irs.gov

In regards to NASCAR24 - I beg to differ on the warranty comment. Besides the 5yr/60k Powertrain and 3yr/36k Limited warranties for all Toyotas, the Prius has a 8 year / 100k mile warranty on the Hybrid components. (Also, I would recommend reading this: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/09/08/MTGPIL0PNR1.DTL)