TORRANCE, Calif. — Consumers who stall until September to buy a Toyota gas-electric hybrid will get only half the current federal tax credit because demand for the popular vehicles has surpassed the federal government's 60,000-unit-per-manufacturer cap.

Because of that, the tax credit on the Prius, which got the biggest break, will drop substantially from $3,150 to $1,575 in October and disappear a year later. Last year's energy bill says that an automaker's additional hybrid sales qualify for half the original tax break for six months, then 25 percent for six months before phasing out entirely.

President Bush asked Congress to lift the sales cap in the spring, but nothing has been done thus far.

What this means to you: If you're going to buy a Toyota hybrid, better hustle if you want a break on your personal income tax.

Source: http://search.msn.com


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