Tax Credit for Some Hybrid Cars to Shrink
From the Associated Press
Environmentally concerned car buyers will see some federal tax breaks for energy-efficient hybrids start shrinking this fall.
Toyota Motor Corp. has hit the production limit -- 60,000 -- on vehicles eligible for a tax credit designed to encourage more buyers to choose gasoline-electric hybrids.
That means the tax credits for Toyota and Lexus hybrids will be cut in half for drivers who purchase their vehicles beginning in October. Taxpayers could still claim a full tax credit for purchasing hybrids made by other manufacturers until they trigger the credit limits or the tax break expires in 2011.
