- Jan 20, 2001
- 10,737
- 0
- 0
It appears the GOP Congress created a tax credit for Babs, Leo, and Al Gore.
SF Chron
It's pretty ridiculous that the only people essentially guaranteed a credit are the well-off . . .
SF Chron
My understanding of the legislation is that it was a 'simple' credit. Meaning every person that purchased a qualifying vehicle would get the credit.If you are among the 150,000-plus proud purchasers of a hybrid gas-electric car during 2006, please sit down. I have bad news. Many of you will not receive the full tax credit that you expected.
To recap, in 2005, Congress passed an energy bill with numerous incentives to encourage conservation. One of these provisions provided a tax credit, beginning January 2006, for purchasers of approved hybrid gas-electric automobiles. This tax credit can be substantial -- up to $3,150 for the Toyota Prius, perhaps the best known hybrid.
Unfortunately, unless you earn more than $750,000 a year, you can't be sure you will qualify for the full published credit for your vehicle.
It's pretty obvious that either Congress is filled with idiots and/or some numb nut hack staffer INTENTIONALLY rigged the legislation to MINIMIZE eligibility.In English, you can't get the full $3,150 credit for purchasing a Toyota Prius unless your regular tax obligation exceeds your Alternative Minimum Tax (AMT) obligation by at least that amount. As a reminder, the AMT is a parallel tax system that excludes many common deductions. By law, every taxpayer must calculate both their regular tax and their AMT obligation, and pay whichever is higher.
---
If you manage to escape owing AMT in 2006, because your regular tax liability is, say, just $10 higher, then $10 is all the hybrid tax credit you will be able to claim So here's the key question for most hybrid car purchasers: by just how much will you escape owing AMT in 2006?
It's pretty ridiculous that the only people essentially guaranteed a credit are the well-off . . .
