Camry Tax Information

The Internal Revenue Service has acknowledged the certification by Toyota Motor Sales U.S.A., Inc. (TMS) that several of its hybrid vehicles qualify for the hybrid tax credit enacted by the Energy Policy Act of 2005. The tax credit for hybrid vehicles may be available to taxpayers who purchase and accept delivery of qualified vehicles beginning on January 1, 2006, and no later than September 30, 2007, and the amount of credit will vary based on the actual date of purchase and acceptance of delivery. An individual's income tax liability can be subject to a number of factors, so consult a tax or accounting professional when considering taking advantage of the hybrid tax credit. Not all taxpayers or persons filing tax returns will be able to claim the hybrid tax credit, even if they otherwise satisfy the basic elements below:

How to qualify for the hybrid tax credit:

  1. The Hybrid vehicle must be new. Used vehicles will not qualify.
  2. The Hybrid vehicle must be purchased. Leased vehicles will not allow the lessee to take advantage of the hybrid tax credit.
  3. The purchaser must accept delivery of the hybrid vehicle from the dealer beginning on January 1, 2006 and no later then September 30, 2007.
  4. The hybrid tax credit amounts are reduced for deliveries in the 12 months after September 30, 2006. For hybrids delivered beginning on October 1, 2006 and no later than March 31, 2007, the hybrid tax credits will be 50 percent of the original amount. For hybrids delivered beginning on April 1, 2007 and no later then September 30, 2007, the hybrid tax credits will be 25 percent of the original amount.
  5. See www.irs.gov for the amount of hybrid tax credits possibly available.
  6. The purchaser must retain appropriate documentation showing the purchase of the vehicle and the date of the delivery of the vehicle.

The benefit of the hybrid vehicle tax credit will also be substantially reduced or eliminated if the individual purchaser is subject to the federal alternative minimum tax (AMT). Individual purchasers and corporations who have business use of the Hybrid vehicle are subject to different tax laws that may also substantially reduce or eliminate the tax benefits. Again, consult a tax or accounting professional before claiming a hybrid tax credit on one's income tax return.



Federal Tax Credits for Hybrids
IRS Certification Letter Camry Model Year 2007
IRS Certification Letter Camry Model Year 2008

More information

For more information about the hybrid tax credits visit one of these sites:

This summary does not constitute tax advice. All persons considering the use of this important new hybrid vehicle tax credit should consult with their own tax advisors to determine the specific amount of benefit, if any, that they may be able to claim on their federal income tax returns. Your tax advisor may also have further information on the many state and local tax incentives that may be available to hybrid vehicle owners. The above summary is based on the federal income tax law in effect in July 2007, and may be changed, without notice, by later changes to the tax law or further action by the Internal Revenue Service.