[RodS7]

I have not seen anything here recently regarding tax incentives. I understand that the old $2000 deduction phased out 12/31/05 and that the 2006 incentive will be a tax CREDIT of up to $3400, depending on the vehicle. I have heard rumors that the Insight will NOT be eligble because it is old(!) technology.

If you go the IRS website at http://www.irs.gov/newsroom/article/0,,id=153172,00.html, you will find a link to a stunningly indecipherable "Notice" giving the rules manufacturers must follow when "certifying" their vehicles for the credit. If you can figure this out and apply it to the Insight, you get the prize! Has anyone heard what Honda is doing/has done?

My original 2000 Insight (#2283) just got traded in for a new 2006 (#0182). I refer to this as my $13,000 detailing job, as the cars seem to be identical (well, they did replace the cassette player with a disk player). Obviously I'm REALLY interested in the tax situation.

Anybody know anything for sure?

 

[Resist]

the 2006 incentive will be a tax CREDIT of up to $3400, depending on the vehicle. I have heard rumors that the Insight will NOT be eligble because it is old(!) technology.

It's not that it is old technology, it's that it never qualified for the tax credit. The Insight hybrid system never met the credit guidelines.

 

[RodS7]

It's not that it is old technology, it's that it never qualified for the tax credit. The Insight hybrid system never met the credit guidelines.

Do we know why it doesn't meet the guidelines now? I got the $2000 deduction on my old Insight, so it must have met the old ones.

 

[Insightful Trekker]

By my read of the forums so far there's not been a definative answer. Your correct about the past tax incentives. And since this possible credit (the old qualification was a deduction) won't be filed 'til 07 I hope that leaves enough time for it to become clear.

One member did email the IRS but only got a boilerplate reply in regard to the manufacturers requirements to appliy for the credit. Maybe email Honda :?: (and post back in this thread your resuilt :!: )

HTH!

 

[The Citrus Smoothie]

This link might help a little (article also available on USA Today etc). The IRS guidelines are being drawn up and appear to be more generous than previous, but they only quote the CVT Insight:

http://www.aiada.org/article.asp?id=56176&cat=Hybrid

 

[ethicalpaul]

the 2006 incentive will be a tax CREDIT of up to $3400, depending on the vehicle. I have heard rumors that the Insight will NOT be eligble because it is old(!) technology.

It's not that it is old technology, it's that it never qualified for the tax credit. The Insight hybrid system never met the credit guidelines.

The manual, being ULEV, doesn't meet them, but the SULEV CVT does meet them, if you can show this to be incorrect, please do. I have read that the CVT qualifies for a $1450 credit. If you can disprove this, please do.

 

[RodS7]

Thanks to all for your thoughts. To ethicalpaul: I believe I heard that rumor as well, and it is at least partially substantiated by the AIADA article that references only the CVT and the fact that the sticker on my new '06 still says ULEV.

I called American Honda in CA and talked to a very pleasant person who could not give me an answer, but assigned a case # and promised to get back. My question was: has Honda gone through the certification process, and if so, what was the result. I will post the answer here if I actually get one.

 

[Resist]

Do we know why it doesn't meet the guidelines now? I got the $2000 deduction on my old Insight, so it must have met the old ones.

Well you got the tax deduction, which is different (and less) than the tax credit. The old rules stated the car had have an electric only mode, if I remember correctly. I'm not sure what the new rules say now but if it is a tax credit, the rules are more strict.

 

[ethicalpaul]

Sorry, Resist, but you continue to have old information on this topic.

yes there was an ancient credit, but that was for an electric only car.

Yes there was a deduction for hybrids which started out at one rate, and then was to be reduced over time. This deduction went away with the transportation act of 2005.

the new law, the transportation act of 2005 included a CREDIT for hybrids starting 1/1/2006 that varied depending on their mileage compared to like-weight vehicles and some other criteria, somewhat complex.

The CVT Insight appears to get you about $1400. The Prius gets you over $3000 apparently. The manual Insight gets you nothing because it's not SULEV.

 

[Resist]

yes there was an ancient credit, but that was for an electric only car.

Thank you for correcting me but the above is not entirely true. Many prius owners legally got the tax credit years ago. And this was at the advice of IRS agents.

 

[jdpenn]

Bought Before 2006

This is slightly off topic, but may benefit some buyers. If you bought a new 2006 Insight before 12-31-2005, there would appear to be no $2000 deduction according to the clean fuel docs - http://www.fueleconomy.gov/feg/tax_hybrid.shtml They only list up to a 2005 Insight as being eligible. I purchased a new 2006 one week before Christmas in 2005. So, I decided to call the IRS for input. The IRS agent told me that if the 2006 is identical to the 2005 model year, as far as hybrid technology goes, to go ahead and claim the $2000 deduction on my tax form as a clean fuel deduction. He said that there are no other details required about the purchase. So, even though a 2006 is not yet listed, I will be claiming the deduction for the 2005 tax year, per the IRS agent instructions.

 

[kari]

Re: Bought Before 2006

This is slightly off topic, but may benefit some buyers. If you bought a new 2006 Insight before 12-31-2005, there would appear to be no $2000 deduction according to the clean fuel docs - http://www.fueleconomy.gov/feg/tax_hybrid.shtml They only list up to a 2005 Insight as being eligible. I purchased a new 2006 one week before Christmas in 2005. So, I decided to call the IRS for input. The IRS agent told me that if the 2006 is identical to the 2005 model year, as far as hybrid technology goes, to go ahead and claim the $2000 deduction on my tax form as a clean fuel deduction. He said that there are no other details required about the purchase. So, even though a 2006 is not yet listed, I will be claiming the deduction for the 2005 tax year, per the IRS agent instructions.

I'm glad you posted this - it's what I was planning to do too! I bought mine the week before xmas and before I did so I called honda and the IRS and both said that it was up to honda to certify the 2006 for the IRS, and they weren't sure when they'd do that. I made the calculated decision to go ahead and get the car in 2005 based on what I'd read about the 2006 insight shutout.


and regarding the 2006 credit, I think it's bull that a very low mileage SUV gets such a wildly high credit! I understand the rationale for considering emissions of the automobile, but over an estimated lifetime of use, I would hazard that an ULEV insight that gets 60 mpg will have fewer emissions than a 30 mpg SULEV SUV.

I didn't see it posted before, but here's the IRS interim guidance with details on the credit
http://www.treas.gov/press/releases/rep ... idance.pdf