RON430

And yes that means the tax credit for Toyota/Lexus hybrids will begin to decline. According to USA Today. It said they sold their 60,000th hybrid in May. The tax credits, by law will be cut in half for Toyota and Lexus hybrids beginning in October. The $3,150 credit for the Prius will go to $1,575. Six months later, next April, the credits will be cut in half again to one quarter of the original and will disappear altogether by October 2007. No other manufacturer has made anywhere near as many hybrids as Toyota so the cuts do not affect hybrids available from anyone else.

PhilipMSPT

iTrader: (5)

That's odd and unfortunate. Some people buy the cars for the tax break because of the higher cost of technology. The car will still sell with gas creeping closer to $4 a gallon...

RON430

Well to those that really want the hybrid, they have a growing number of alternatives. I think the article said Honda is lagging Toyota by quite a bit but the expiring tax credit on the Toyotas appear to have thrown shoppers to Honda. Who knows?

rominl

iTrader: (4)

but with the 100mpg new prius coming out in 2 yrs toyota might be ahead again

either way, this is sad for those who are thinking about getting prius soon. they have to pay about the same price but yet not able to claim as much credit

Trexus

Exactly that tax credit is a good incentive for people to purchase the Prius here in the U.S...

RON430

I am not sure I find it that unfortunate. There are now quite a few alternative hybrids to purchase from mfrs that haven't hit the 60,000 volume yet. Toyota/Lexus is the one that will feel the pain. The credit was never meant to be forever but to spur a new technology so if it moves more mainstream, it is just another engine option. Had a chat with the wife and the expiration in September of the credit isn't enough to get her interested but I assume there will be those that will make the decision. So Toyota/Lexus hybrid sales might spike in September but it will be doing it by taking away some after Oct. 1 sales.