Toyota Kisses Tax Credits For Hybrids Goodbye

Toyota Motor Corp.'s Prius, arguably America's most popular green-machine, is slowly bidding farewell to its sizable tax incentives.

Generous federal credits established to bolster fledgling U.S. hybrid sales are being phased out on the Prius, gradually eroding a major purchasing incentive but also signifying the model's ongoing popularity.

Credits worth between $1,550 and $3,150 on Toyota hybrids began a quarterly reduction in value last fall, under the terms of federal law that mandates incentives gradually disappear after a manufacturer sells 60,000 gas-electrics.

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t_bone - 5/16/2007 10:04:04 AM

+5 Boost

It's actually quite remarkable how well this one government program worked. The government paid more, the consumers probably paid more, and Toyota paid more, while hybrid technology was ramping up. Now that the technology is maturing, the popularity soaring, and production costs reducing, the tax incentives are going away. Kudos to everyone involved.

Now hopefully they can start on the path to, as SpaceShipOne designer Burt Rutan said in a Popular Science interview, "make them a little less 'gassy' and more electric." I'd like to see things like 120hp electric motors paired with 1.2 liter gas engines, for example. Oh, and bigger battery packs to make the typical commute under 100% battery.

Electrics rock! Been a huge fan ever since my best friend's 12th birthday, when he got a Tamiya Grasshopper R/C car. (Still jealous of him all these years later, LOL)

Agent009 - 5/16/2007 10:57:36 AM

+1 Boost

As much as I dislike Hybrids, I have to admit the program works exceptionally well. To actually garnered interest in a new technology and help it gain acceptance.

EnnNorak - 5/16/2007 10:37:37 AM

-2 Boost

As far as I am concerned, tax credits on hybrids were nothing but a political con job to begin with. Hybrids do not make financial sense when the cost of replacement battery packs is added to the equation. If we really have to conserve gas then gas has to be taxed to the point where demand is significantly reduced. Having said that, I do not want politicians to use the extra tax revenue for anything other than highway construction and maintenance and the rebuilding of related infrastructures like crumbling bridges.

XYZZ - 5/16/2007 10:51:23 AM

+3 Boost

if you think ANY politician will vote for higher gas taxes, you live in a dream world.

i too believe gas should cost more to deter its wasteful use. but people bitch about a mere nickel increase in gas taxes/retail prices. no way will the american public re-elect any politician who advocates higher gas taxes.

hybrids may not be the ultimate answer, but they are THE BEST ANSWER at THIS TIME. and it will only get better as the technology and batteries get further refined.

S4cabriofoxone - 5/16/2007 7:07:16 PM

+1 Boost

I want hydrogen to phase into the automotive market; it would make the most dramatic improvement in automotive emissions (obviously) and could be a viable alternative, if what Honda says is right. I have a feeling hybrids, diesels and ethanol powertrains will go the way of the dodo if the Honda FCX gains popularity.