Planning to purchase a Toyota hybrid but wondering why there is no tax credit for Toyota?

The widespread recognition of Global Warming and the rising price of oil have prompted the U.S. government to introduce a tax credit for the purchase of  hybrid electric cars.  There are a growing number of countries that are doing the same in order to reduce emissions and energy problems.  For every gallon of gasoline that is burned in a combustible engine vehicle, 19 lbs of Co2 are released into the environment which is contributing to global warming at a rapid rate.

Hybrid tax credits were initially introduced through the Energy Act of 2005, in effect starting January 2006. The current tax credits will most likely expire at the end 2010 now that American automakers are getting so involved in the hybrid market.

The full credit of $3,150 applied only to the first 60,000 vehicles sold by a given automaker. After that, the tax credit declined over time, 100 percent of the full credit was available for the first calendar quarter after the 60,001 was sold; 50 percent in the 2nd and 3rd full quarter after that; and 25 percent in the 4th and 5th quarter after that. Thus, less than 15 months after the 60,001st hybrid of a given model, the entire tax credit is eliminated.

This complicated system was designed to protect American automakers from competition by the Japanese hybrid manufacturers.  It also guaranteed that the first carmakers into the hybrid market would also be the first to exhaust their tax credits. There were no Toyota hybrid owners who enjoyed the credit after late 2007. Honda hybrids exhausted their credit in early 2009.

If you are planning to purchase a hybrid in 2010, see your local St. Louis Toyota Dealer today and test drive our new or used Toyota cars including the Prius Camry, and Highlander hybrids.

Toyota is the number one manufacturer of hybrid vehicles, in the U.S. today.  There are six different hybrid models (between Toyota and Lexus), in Toyota’s hybrid line-up. Toyota dominates the market for three quarters of all of the hybrid vehicles in the United States, and has manufactured the number one best selling hybrid in the world, the Prius. Other hybrids made by Toyota include the Camry Sedan, and the Highlander SUV. These vehicles combine the best of the original gasoline only designs, with hybrid synergy drive, and hybrid technology, to produce  cutting edge vehicles.  The Prius is the only hybrid that was designed solely as a hybrid vehicle.

The Hybrid Synergy Drive integrates the advantages of an electric motor and a gas/petrol engine. It is not merely a package that has an electric motor and a gas/petrol engine on board. Toyota applied cutting edge technologies based on latest research to integrate dual power sources. In simple terms, the Toyota Synergy Drive is a smooth flowing transition from your electric powered drive to gasoline power, and moving parts are kept to a minimum.  Synergy Drive is overall a much simpler operating system that other hybrids use, (such as the Honda Insight).

The Camry and the Highlander are available in either gasoline only, or  hybrid vehicles. The hybrid vehicles obviously get better gas mileage, create less pollution from emissions,  and are moderately priced, compared to the gasoline only version. If you want a hybrid vehicle, Toyota is your very best source for a Sedan, SUV or for the best selling hybrid vehicle ever made-the Prius.

To test drive one of these great hybrids, contact your local Toyota dealer, Spirit Toyota in St. Louis today, we have some of the best used and certified used toyota hybrids, some starting as low as $17,000, as well as the new 2010 models in our line-up.