Derf's Grotto

[ypsiCPA]

Toyota Prius - Tax credit shooting star (2006 purchases)

The Prius will get the second-largest tax credit of any vehicle. Buyers will get $3,150 off their federal taxes. But you'd better not wait too long, because credits on Toyota hybrids will probably start shrinking and, ultimately, disappear sooner than those for other hybrid vehicles.Tax credits for hybrid vehicles sold by any given car company begin to phase out once that manufacturer has sold 60,000 eligible vehicles. Toyota, which sells hybrids under both the Toyota and Lexus brands, will probably reach that limit well before the end of 2006.