Honda Insight Forum banner

1 - 15 of 15 Posts

·
Registered
Joined
·
222 Posts
Discussion Starter #1
If the Insight is made in 2006 its US buyers are going to get screwed in the tax department compared to Civic and Prius buyers, it looks like.

The Kipplinger Tax Letter says:

"Honda Civic buyers will get a tax credit of about $2,350. The credit should be about $1,450 for purchasers of the Honda Insight and approximately $2,750 for buyers of the Toyota Prius."

The most economical vehicle gets the least credit. I assume this is because the Insight is light and the credit is based on weight for some reason??? WTF?

Just whining...
 

·
Registered
Joined
·
489 Posts
I could see how the number of passengers could be a factor in the tax credit. The Civic and Prius would use less fuel per passenger if the vehicle were full.
 

·
Registered
Joined
·
7 Posts
The formula compares the car's fuel economy to other cars in its weight class. Since the insight is so light, it is compared to other very light cars which also get excellent gas mileage.

I think the Chevy Tahoe gets a larger tax credit than the insight !??!? :x
 

·
Registered
Joined
·
7 Posts
Hi Rick, The rules are a bit more complex for figuring out when the credit will run out for the Prius. I think the full credit is good through the end of the quarter after the 60,000 sales number is reached. This would likely make it good from Jan. 1 till Sept. 30, 2006. I'll look it up later to be sure.
--Walter
 

·
Registered
Joined
·
222 Posts
Discussion Starter #6
aaaack!! The manual Insight "fails" an emissions test and so it won't qualify for the credit at all? Am I reading it right?

That is harsh and really sucks.
 

·
Registered
Joined
·
1,240 Posts
ethicalpaul said:
If the Insight is made in 2006 its US buyers are going to get screwed in the tax department compared to Civic and Prius buyers
This is nothing new. The Prius has always gotten the tax credit because of it's all electric mode. So the new Civic will get it too. The Insight has always only qualified for the tax deduction.
 

·
Registered
Joined
·
652 Posts
Resist,
I have 3 Prius and they only qualify for the deduction. (Hybrids are not electric vehicles as they require the gas engine to recharge the batteries). It is interesting that the new credit gives heavy cars more of a deduction than light ones. Are we trying to encourage car makers to make even heavier cars? Have fun, Rick
 

·
Registered
Joined
·
222 Posts
Discussion Starter #9
Resist said:
This is nothing new. The Prius has always gotten the tax credit because of it's all electric mode. So the new Civic will get it too. The Insight has always only qualified for the tax deduction.
sorry, but I think this is something completely new. Thanks to the brand newly signed energy bill, all hybrids will be eligible for a CREDIT in 2006, which is totally, 100%, completely new.

The crappy part is that the most efficient vehicle gets either a relatively measly $1450 credit (for the Insight CVT) or apparently, a 0$ credit for the 5-speed Insight.
 

·
Registered
Joined
·
1,240 Posts
I remember when the Prius first came out, many were getting the tax credit because it was a grey area in the tax law and I think the way the vehicle's drive system works and with electric only reverse helped sway people towards taking it. Maybe something has changed since then. But I personally know of many Prius owners that took the credit on advice from their tax experts.
 

·
Registered
Joined
·
222 Posts
Discussion Starter #11
OK, I hear you. I think that some tax people made it "more gray" than it should have been.

But in any case, this is a completely new credit quite separate from that old one that those Prius people mistakenly took.
 

·
Registered
Joined
·
470 Posts
This tax credit is something you only get once, in the year when you buy a new hybrid, correct? I bought used this year and I'm expecting no credit, but thought I'd better ask and be sure.
 

·
Registered
Joined
·
470 Posts
I guess my credit would be that I paid much less for the car. :D
 

·
Registered
Joined
·
1 Posts
devin1955 said:
This tax credit is something you only get once, in the year when you buy a new hybrid, correct? I bought used this year and I'm expecting no credit, but thought I'd better ask and be sure.
Not only no credit but also no deduction.

New hybrids first placed in service in 2004 and 2005 are eligible for a federal income tax deduction of $2000. The value of a deduction depends on your federal tax bracket; if you're in the 25% bracket, that deduction would be worth $500 to you. Both Insight models (MT and CVT) qualify for the deduction. You do not have to itemize deductions on your tax return to claim this deduction. See Clean Fuel Tax Deduction For Hybrid Vehicles on the IRS Web site for details.

Under the energy production bill signed by Bush earlier in August, as of January 1, 2006 the deduction is repealed (it was scheduled to be vastly reduced anyway) and is replaced by a credit for the purchase of certain hybrids. A credit reduces income tax dollar for dollar. The amount of the credit will vary by model. If the 2006 Insights are identical in gas mileage and emissions to the 2005 Insights, the CVT Insight will qualify for the credit noted above, $1450, but the MT Insight will not qualify for any credit at all.
 
1 - 15 of 15 Posts
Top