Sales increased because of tax breaks?
Created April 12, 2005, at 10:04 pm by Anonymous
Have sales increased because of tax breaks by the Irs. And if so by how much. I need to know this because i'm doing a speech in my class trying to persvade people to by hybrid cars and it would really help if some one can say to my that tax breaks really have increased sales in the U.S. and the sourse you got it from.
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6 years ago
Mike, my source is just my own experience, but tax breaks did influence my decision to buy a hybrid. However, it wasn't so much the federal (IRS) tax break, which is a $2000 deduction - which means that you don't get $2000 off, you get a percentage of that depending on your tax bracket... usually a few hundred dollars.
I live in NY which offers a $2000 state tax credit - which means I get the full $2000 off. In addition, there is a sales tax exemption on $3000 of the purchase price... which they consider the approximate extra cost of the hybrid version over a comparable non-hybrid version. With our high sales tax here, that saved me another ~$260.
If it weren't for these incentives, I would most likely have kept on driving my 1988 Toyota truck.
6 years ago
Hi,
I too received the federal tax break of $2,000, but he bigger savings was due to Connecticut's policy to not chage any sales tax on hybrid cars that get more than 40 MPG (EPA estimate). This saved me $1,300 in sales tax right off the price of the car. This combined with the federal savings of about $500 left me with a hybird car (honda civic) that cost me little more than a comparably equipped regular civic. Also, Connecticut is offering the sales tax break on the sale of used vehicles, so when i sell my car it should retain its resale value relatively well.
6 years ago
i forgot, the bottom line is that i would not have bought the hybrid without the incentives.
6 years ago
In Japan the government simply "gives" you $2,000.00 for buying a hybrid (Prius, etc.?).
6 years ago
There is curently a hybrid supply problem. This is apparent in long waiting lists and sales prices above sticker price. Tax breaks of any kind are irrelavent until the supply is available. By buying one, you're increasing the current demand, but not causing an additional unit to be produced.
6 years ago
Funny, I just heard that hybrid sales were up 81% last year. Yes there is a waiting list for some models, but eventually these models make it into the market. Also, the car makers have dedicated themselves to making more hybrids ASAP, changing production lines to keep up with demand. Additionally, the honda civic hybrid was partly responsible for the 81% increase and there is no waiting for these at most dealerships. I bought mine ONLY because it was economically sensible for me to do so. The tax breaks i received, described above, were the factor that tipped the balance for me to make the hybrid purchase.
6 years ago
I'm looking at the Hatch bill that President Bush just endorsed this week and your tax credit is based on "the percentage of the maximum available power". How do I figure out what the Toyota Highlander's hybrid engine is on this scale. The bill is at http://www.cleancarcampaign.org/pdfs/Hatch%20S760.pdf.
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