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Certain companies ARE trying to have tax credits extended, so that people will continue
to buy hybrids

(1.) By KEN THOMAS, Associated Press Writer “Toyota Seeks Extended Hybrid Tax
Credits” Associated Press Online November 29, 2006 LexisNexis
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Toyota North American President Jim Press urged Congress Wednesday to extend federal
tax credits for hybrid vehicles and accelerate its buying of hybrids and alternative fleet
vehicles to help address energy concerns. A 2005 federal energy bill provided up to
$3,600 in tax credits to U.S. consumers who buy hybrids, but Toyota Motor Corp. this
summer hit the legal production limit 60,000 vehicles that are eligible for the full tax
credit. Toyota officials said the automaker's U.S. hybrid sales in October dropped to its
lowest levels since March, attributing the decline in demand in part to the reduced tax
credits. The automaker also shifted production of some hybrids from Japan to the
U.S."By encouraging consumer support for a promising new technology, our
government is supporting innovation and investing in our nation's future," Press told the
Electric Drive Transportation Association. "We'd like to see those tax incentives
continue."Federal tax credits for Toyota and Lexus hybrid vehicles were cut in half
beginning in October. The $3,150 credit for the popular Toyota Prius, the largest hybrid
tax credit available, shrank to $1,575 on Oct 1. Credits for other hybrids made by
Toyota, including certain Camry, Highlander and Lexus vehicles, were reduced to between
$775 to $1,300. Press said there was a drop in demand for hybrids after the full tax
credit expired for Toyota and "it shows that it had an effect." President Bush has called for
an extension of the tax credits for the purchase of hybrids and other alternatives, but
Congress showed little interest in extending the incentives before this month's elections.
Toyota has been expanding its offering of hybrids along its vehicle line and Press told
reporters that the automaker was looking into expanding the Prius line. He said the
considerations were still at the conceptual stage and no decisions had been made. Press
urged stronger partnerships between government and the industry, noting that the
development of alternative vehicles could be spurred through fleet buys for the military
and government use. The shift in power in Congress offers a "moment of opportunity,"
he said.

Hybrids are slowly becoming more popular, thus more need to be manufactured.
(2.)R.L. Polk & Co. Hybrids: Way cooler in California DETROIT Automotive News October 2,
2006 LexisNexis

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Hybrid hot spots


: share of u.s. hybrid Registrations*
1. Los Angeles: 12.4%
2. San Francisco/Oakland/San Jose: 7.9%
3. New York: 5.7%
4. Washington D.C./Hagerstown, Md.: 4.9%
5. Boston/Manchester, N.H.:3.1%
6. Chicago: 2.9%
7. Philadelphia: 2.7%
8. Seattle/Tacoma: 2.6%
9. San Diego: 2.0%
10. Denver: 1.8%
* Jan.-July 2006

(3.)Sandra Block “Gas prices, taxes got you down? Buying a hybrid could provide a
break.” USA TODAY March 11, 2008 LexisNexis

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The hybrid tax credit was designed to offset the higher cost of a hybrid compared with
a conventional vehicle. An increase in the number of hybrids has caused that premium
to shrink. Unfortunately, for some hybrids the tax credit is shrinking, too. Your tax
credit could be reduced or eliminated if:
*You buy a popular hybrid. Once a manufacturer has sold 60,000 hybrid vehicles, the
tax credit for buyers of its hybrids gradually phases out and eventually disappears.
Toyota, which makes the Prius and Lexus hybrids, hit the 60,000 threshold in 2006.
Taxpayers who bought a Prius or Lexus hybrid during the first nine months of 2007 are
still eligible for a reduced credit (see box). But if you bought a Toyota hybrid after Oct.1,
"You're out of luck," says Patrick Olsen, editor of Cars.com.
Honda hit the 60,000 threshold in the third quarter of 2007. Under the phaseout system,
taxpayers who bought a Honda hybrid in 2007 are still eligible for the full tax credit.
The amount of the credit was cut in half on Jan. 1, 2008, will fall an additional 25% on
July1 and disappear altogether in 2009. So if you're interested in a Honda hybrid,
consider buying one before June30.

(4.)Susan Tompor, Detroit Free Press Not all hybrids are taxpayers' pals Detroit Free
Press (Michigan) Distributed by McClatchy-Tribune News Service January 16, 2008
LexisNexis

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Green could turn into the new gold when it comes to promoting Earth-friendly cars and
trucks. You can spot that marketing magic the minute you walk through the doors this
weekend of the 2008 North American International Auto Show.
But if you get a little tempted _ and maybe remember hearing something about
generous tax breaks for hybrid cars and trucks _ pay close attention to what you're
buying. Buyers of the most popular Toyota hybrids no longer get a tax credit. And the
Honda hybrids won't come with the hefty tax deals that they used to have, either.
This tax credit has always been tough to understand. Currently, the credit applies
overall to qualified purchases of hybrid and lean technology vehicles sold from 2006
through 2010.
And right now, anyway, there's no credit for plug-in hybrids _ even if some plug-ins
make it to dealerships in 2010 or so.

(5.)MARY DALRYMPLE, AP Tax Writer “Tax credits for some hybrid cars halved starting
this fall” Associated Press Financial Wire July 20, 2006 Thursday LexisNexis
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That means the tax credits for Toyota and Lexus hybrids will be cut in half for drivers
who purchase their vehicles beginning in October, she said. The $3,150 credit for the
popular Toyota Prius, the largest hybrid tax credit available, would shrink to $1,575.
Six months later, beginning next April, the tax credits will shrink to one-quarter of their
original value. They will disappear by October 2007.
But the law limited that tax credit to the first 60,000 vehicles that a manufacturer
produces. After the manufacturer hits that limit, the full credit is available only through
the next quarter. The credit then shrinks to half its value for six months, and then to one-
quarter for another six months, before disappearing entirely.

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