Posted by Herb Kravitz on February 12, 2001 at 14:48:27:In Reply to: Re: Tax credit? posted by Colin Glassey on January 08, 2001 at 19:29:48:
In regard to the Prius, Toyota has suggested the following letter
be given by its dealers to Prius owners:"An individual consumer purchaser of a Prtus may be entitled to a federal tax deduction of up to $2,000 for Prius purchases completed on or before December 31, 2001. The deduction is not available to a consumer lessee of a Prius. To the extent applicable, this deduction is available to consumers regardless of whether they itemize deductions on their individual income tax return. The overall federal tax benefit will depend on your individual tax situation, particularly if you claim depreciation deductions on your Prius. So, please contact your individual tax advisor for further information on how you can take advantage of this important federal tax benefit for qualified clean-fuel vehicles like the Prius (IRC Section 179A).
State income tax benefits may also be available in the following states because their definitions of state taxable income can in part include the above federal deduction: AZ, AR, GO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MO, MT, NE, NM, NY, NC, ND, OH, OK, OR, RI, SC, UT, VT, VA, WV and WI.
Separate state tax benefits specifically directed towards vehicles like the Prius may also be available in LA, MD, NY and VA.Your individual tax advisor may also have further information on any state and local benefits available to purchasers of the Prius."