Business Commentary for Rational Individuals

Toyota, Honda, Ford Hybrid Tax Credits

Dr. Bill Belew

Issue I - June 11, 2006

Introduction by Mr. Stolyarov: Dr. Bill Belew writes that the U. S. government is giving out tax credits to owners of hybrid cars-- partly as an incentive to purchase these cars despite their greater expense in almost all other areas. The question here is whether the money saved via the tax credit will be greater than the money lost by purchasing the hybrid car and paying more for fuel and/or for the car itself; it is a question of specific calculations which cannot be answered a priori. Suffice it to say that the tax credits provide a greater incentive to purchase hybrid cars than the absence of said credits.

Toyota hybrids have hit the ceiling the tax break ceiling.

The limit of 60,000 cars was surpassed already, but, because of some funky law, buyers have until September 30th to buy a Prius and still qualify for the $3,150 government tax credit. After that they can only get half a credit.

Qualifying for the credit is easy finding a Prius is the hard part.

I got an email from a fellow in Canada who says they have a bunch of them just sitting around. Would anybody like to fund bringing them here to the Bay area of San Francisco? The price of a used Prius goes up here. There is money to be made there somewhere.

The following hybrids are eligible for tax credits:

Find out which hybrids are eligible for tax credits by clicking here to continue reading and comment on this article.


Dr. Bill Belew is a former Intelligence Officer for a Destroyer Squadron. He lived 20 years in Japan, where he started a language school for Japanese ECS. Dr. Belew teaches classes for a vocational school and online for a national university.

See Dr. Belew's blog, PanAsianBiz, for news and discussions about business and current events in Russia and Asia. See ZhongHuaRising for Dr. Belew's reports on business in China and RisingSunofNihon on business in Japan.

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