Honda Hybrid Tax Credit to Phase Out

**CameronJr9** · 11-20-2007, 08:41 AM

Honda Hybrid Tax Credit to Phase Out http://www.chron.com/disp/story.mpl/ap/fn/5314864.html

WASHINGTON — A tax credit for buyers of Honda Motor Co. hybrid models is due to phase out starting at the end of the year, the Internal Revenue Service said Monday.

Honda is the second automaker to hit a limit of 60,000 hybrid vehicles that qualify for the credit, which is designed to encourage sales of the fuel-efficient cars. Toyota Motor Corp. hit the limit last year, while Honda did so this fall, the IRS said.

Customers who buy a Honda hybrid before the end of 2007 will still be eligible for the full tax credit. In the first half of next year, buyers of Honda hybrids will be able to claim only 50 percent of the original tax credit, or $650 for Honda Accord hybrids and $1,050 for Honda Civic models.

After July 1, the credit will be cut to $325 for the Accord models and $525 for the Civic, the IRS said.

Hybrids have the ability to switch between internal combustion engines and electric motors to power themselves, with batteries that recharge during driving. They deliver better gasoline mileage than conventional vehicles.

Tax credits of up to $3,000 are still available for hybrids made by Ford Motor Co., General Motors Corp. and Nissan Motor Co.

***Chase*** · 11-20-2007, 08:55 AM

why does Ford, Gm and Nissan get them? Thats kind of bull if you ask Me...

**CameronJr9** · 11-20-2007, 10:05 AM

Quote:

Originally Posted by Chase

why does Ford, Gm and Nissan get them? Thats kind of bull if you ask Me...

Probably because Honda doesn't have any trouble selling Hybrids. Ford, GM, and Nissan need all the help they can get. Especially Nissan, because I didn't even know they had Hybrids!

jredison · 11-20-2007, 12:06 PM

All the auto companies get the same credit, all of them have the same phase-out at the 60,000 vehicle mark.

It's just that Toyota and Honda's hybrids are much better sellers than the other ones.

When (if) the others hit the 60,000 sales mark the credit on those will phase out too

***Chase*** · 11-20-2007, 01:09 PM

oh Ok I understand now, I thought they were just hatin'

GoHuskies · 11-20-2007, 01:47 PM

Quote:

Originally Posted by CameronJr9

Probably because Honda doesn't have any trouble selling Hybrids. Ford, GM, and Nissan need all the help they can get. Especially Nissan, because I didn't even know they had Hybrids!

Hybrid Altima. Pretty much the Toyota hybrid in a Nissan skin. Ford and Nissan both pay to use Toyota's own system because they don't have one of their own.

Nissan only sells the hybrids in a few states where the emission laws are tougher like Cali or here in CT. Ford has a waiting list for its one hybrid escape. Both companies are also limited because Toyota has the battery producers under sway and limits the #'s of hydride batteries they can use.

***giantquesadilla*** · 11-23-2007, 12:41 AM

This was from the other day, I hope it helps.
The Internal Revenue Service has discontinued the federal tax credits for Toyota hybrid vehicles—including the flagship Prius—as of Oct. 1, 2007. Toyota Motor Corporation hit a legal cap in the number of vehicles sold that can offer the credit. Only hybrids purchased before the Oct. 1 deadline are now eligible for the incentive.

According to IRS rules, tax credits for new hybrid vehicles phase out when an automaker sells 60,000 hybrids. Toyota hit the magic number last summer, which initiated the beginning of the process.

Honda recently reached the mark of 60,000 hybrids sold, and will now start their phase-out next year.

GM, Ford, and Nissan are not expected to reach cap before 2009 when the incentive laws will be reconsidered or entirely discontinued.

***giantquesadilla*** · 12-03-2007, 12:18 AM

Another update:
http://www.irs.gov/newsroom/article/...175828,00.html

11-20-2007, 08:41 AM	#1 (permalink)
CameronJr9 Crazy Yellow Puppet Join Date: Feb 2006 Location: Louisville, KY Age: 28 Posts: 25,239 Back and Forth Forever iTrader: 6 / 100%	Honda Hybrid Tax Credit to Phase Out Honda Hybrid Tax Credit to Phase Out http://www.chron.com/disp/story.mpl/ap/fn/5314864.html WASHINGTON — A tax credit for buyers of Honda Motor Co. hybrid models is due to phase out starting at the end of the year, the Internal Revenue Service said Monday. Honda is the second automaker to hit a limit of 60,000 hybrid vehicles that qualify for the credit, which is designed to encourage sales of the fuel-efficient cars. Toyota Motor Corp. hit the limit last year, while Honda did so this fall, the IRS said. Customers who buy a Honda hybrid before the end of 2007 will still be eligible for the full tax credit. In the first half of next year, buyers of Honda hybrids will be able to claim only 50 percent of the original tax credit, or $650 for Honda Accord hybrids and $1,050 for Honda Civic models. After July 1, the credit will be cut to $325 for the Accord models and $525 for the Civic, the IRS said. Hybrids have the ability to switch between internal combustion engines and electric motors to power themselves, with batteries that recharge during driving. They deliver better gasoline mileage than conventional vehicles. Tax credits of up to $3,000 are still available for hybrids made by Ford Motor Co., General Motors Corp. and Nissan Motor Co. __________________

11-20-2007, 08:55 AM	#2 (permalink)
*Chase* VIP Member Join Date: Jul 2006 Location: El Paso Texas Age: 22 Posts: 2,703 Chase iTrader: 2 / 100%	why does Ford, Gm and Nissan get them? Thats kind of bull if you ask Me... __________________ Click Here to visit hispeedchase.com

11-20-2007, 01:09 PM	#5 (permalink)
*Chase* VIP Member Join Date: Jul 2006 Location: El Paso Texas Age: 22 Posts: 2,703 Chase iTrader: 2 / 100%	oh Ok I understand now, I thought they were just hatin' __________________ Click Here to visit hispeedchase.com

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11-20-2007, 12:06 PM	#4 (permalink)
jredison Member Join Date: Aug 2006 Location: Palmerton, PA Age: 27 Posts: 96 Brian iTrader: 1 / 100%	All the auto companies get the same credit, all of them have the same phase-out at the 60,000 vehicle mark. It's just that Toyota and Honda's hybrids are much better sellers than the other ones. When (if) the others hit the 60,000 sales mark the credit on those will phase out too

11-23-2007, 12:41 AM	#7 (permalink)
*giantquesadilla* GAS SIPPER Join Date: Nov 2007 Location: SoCal Posts: 284 Colby iTrader: 0 / 0%	This was from the other day, I hope it helps. The Internal Revenue Service has discontinued the federal tax credits for Toyota hybrid vehicles—including the flagship Prius—as of Oct. 1, 2007. Toyota Motor Corporation hit a legal cap in the number of vehicles sold that can offer the credit. Only hybrids purchased before the Oct. 1 deadline are now eligible for the incentive. According to IRS rules, tax credits for new hybrid vehicles phase out when an automaker sells 60,000 hybrids. Toyota hit the magic number last summer, which initiated the beginning of the process. Honda recently reached the mark of 60,000 hybrids sold, and will now start their phase-out next year. GM, Ford, and Nissan are not expected to reach cap before 2009 when the incentive laws will be reconsidered or entirely discontinued.

12-03-2007, 12:18 AM	#8 (permalink)
*giantquesadilla* GAS SIPPER Join Date: Nov 2007 Location: SoCal Posts: 284 Colby iTrader: 0 / 0%	Another update: http://www.irs.gov/newsroom/article/...175828,00.html