ultra63

Is it correct that there is $2000 federal income tax deduction on the rx400h?
"The clean-fuel vehicle tax deduction was originally scheduled to phase out starting in 2004. Vehicles bought in 2004 were eligible for a maxiumum deduction of $1,500, and those bought in 2005 were eligible for a $1,000 deduction. However, the "Working Families Tax Relief Act of 2004" has extended the $2,000 deduction through 2005." http://www.fueleconomy.gov/feg/tax_hybrid.shtml

HarrierAWD

True.

However, Japanese Yen has appreciated about 15% against U.S. currency in the last 6 months. Since the RX400h will only be made in Japan (at least initially,) this may seriously impact the price when it's available for sale. So the RX400h may not be as appealing as it could be, even with the tax deduction.

And when Iraq becomes our 51st state and gas drops to 99 cents per gallon......

ultra63

A $2000 premium over a similarily equiped rx330 is a "slam dunk". A $5000 + premium over a similarily equiped rx330 is a poor decision for most buyers.

sktn77a

iTrader: (2)

I believe the tax credit is being gradually phased out. The $2000 credit was from a couple of years ago. Check what it currently is with your dealer/tax accountant.

HarrierAWD

The $2,000 tax credit has been extended thru the end of 2005 like ultra63 said. It is listed in the "Working Families Tax Relief Act of 2004" under the provision "Repeal of deduction phaseout for qualified clean-fuel vehicles."