Following the launch of the first hybrid car in the country, Toyota Motor Philippines (TMP) Corp. is now seeking incentives from the government to enable it to cut the price of the environment-friendly vehicle.
TMP president Hiroshi Ito said the Toyota Prius was heavily taxed, so incentives could really help bring down the price from the current P2.2 million.
“We’re still discussing with the government. This vehicle is not under the incentives program. If there are incentives, then the price can go down,” he told reporters on the sidelines of the Prius launch Friday evening.
He explained that more than 30 percent of the car’s price, or around P600,000, was composed of three layers of taxes: import duty, excise tax and value-added tax.
But with or without incentives, he said TMP was targeting to sell 100 units of the Prius this year.
So far, 30 units of the Prius were already in-country, he said. TMP had yet to start commercial selling of the hybrid vehicle.
The Toyota Prius runs on either or both gasoline and electricity via the company’s Hybrid Synergy Drive technology.
It has been selling in more than 40 countries worldwide, its biggest markets being the United States and Japan.
This third-generation Prius will be marketed in more than 80 countries worldwide to promote the use of hybrid vehicle technology.
In an earlier interview, TMP vice chair Alfred Ty said that in many of its markets, Prius buyers were treated to a host of incentives, including tax reductions, subsidies and even parking priorities, to stimulate the use of environment-friendly vehicles.
He said TMP could use similar incentives.
Meanwhile, Ito said TMP expected overall vehicle sales for the year to be about the same as in 2008, or 45,915 units.
The company closed 2008 with a market share of 36.9 percent.
As of end-May, TMP continued to hold the top spot in the local auto industry with sales reaching 17,080 units for a 34.9-percent share of the market.
Showing posts with label Tax Credit. Show all posts
Showing posts with label Tax Credit. Show all posts
Monday, June 22, 2009
Sunday, June 14, 2009
Hybrid Tax Credit: 2010 Ford Fusion and Mercury Milan Highest
Boosting mpg is one thing, but just in time for tax season, the 2010 Ford Fusion and Mercury Milan promise to boost your rebate, too.
To the Ford Fusion hybrid’s list of highs—mpg, style, and fun factor in a hybrid—add one more: tax credit. Ford has announced that the hybrid Fusion and its mechanical twin the Mercury Milan qualify for the nation’s highest hybrid-vehicle tax credit, $3400.
But there’s a catch, and a well-timed one at that. Tax credits only apply to the first 60,000 hybrid vehicles sold by a manufacturer after January 1, 2006. Ford sold its 60,000th hybrid in the fourth quarter of 2008, and tax-credits have half-lives.
Therefore, beginning in the second quarter of 2009 (April 1), the Fusion hybrid tax credit will be reduced by half, to $1700, and by half again, to $850, in quarter three (starting October 1).
Honda and Toyota surpassed the 60,000-vehicle mark long ago and have already run through their draw-down periods, so buyers of their hybrids are no longer eligible for tax credits.
After April 1, 2010, there will be no tax credit on hybrid Fords, either. So if you were debating when to buy that hybrid Fusion, consider that buying before tax time this year will increase your credit substantially.
Buying the Fusion hybrid at the full tax credit also makes for an interesting comparison to the standard Fusion. Starting at $27,995, the hybrid’s standard-equipment roster is nearly identical to the $24,700 Fusion SEL’s.
The hybrid’s four-cylinder is a little down on power compared to the SEL’s, but the electric motor keeps them close in the stop-light drags, and who’s drag-racing hybrids, anyways?
Subtract the hybrid’s tax credit and it sells for $24,595, making the only real reason to buy an SEL in the next two months a serious lust for leather. Which we understand. It’s the same story for the Milan hybrid.
To the Ford Fusion hybrid’s list of highs—mpg, style, and fun factor in a hybrid—add one more: tax credit. Ford has announced that the hybrid Fusion and its mechanical twin the Mercury Milan qualify for the nation’s highest hybrid-vehicle tax credit, $3400.
But there’s a catch, and a well-timed one at that. Tax credits only apply to the first 60,000 hybrid vehicles sold by a manufacturer after January 1, 2006. Ford sold its 60,000th hybrid in the fourth quarter of 2008, and tax-credits have half-lives.
Therefore, beginning in the second quarter of 2009 (April 1), the Fusion hybrid tax credit will be reduced by half, to $1700, and by half again, to $850, in quarter three (starting October 1).
Honda and Toyota surpassed the 60,000-vehicle mark long ago and have already run through their draw-down periods, so buyers of their hybrids are no longer eligible for tax credits.
After April 1, 2010, there will be no tax credit on hybrid Fords, either. So if you were debating when to buy that hybrid Fusion, consider that buying before tax time this year will increase your credit substantially.
Buying the Fusion hybrid at the full tax credit also makes for an interesting comparison to the standard Fusion. Starting at $27,995, the hybrid’s standard-equipment roster is nearly identical to the $24,700 Fusion SEL’s.
The hybrid’s four-cylinder is a little down on power compared to the SEL’s, but the electric motor keeps them close in the stop-light drags, and who’s drag-racing hybrids, anyways?
Subtract the hybrid’s tax credit and it sells for $24,595, making the only real reason to buy an SEL in the next two months a serious lust for leather. Which we understand. It’s the same story for the Milan hybrid.
Energy Tax Credits by 2009 Stimulus Plan
One way the government hopes its 2009 economic stimulus plan will help jumpstart the economy is by investing billions of dollars in industries that support energy efficiency - everything from electric car battery technology to wind turbines to modernizing the country's power grid.
Corporations aren't the only ones receiving incentives, however: Individual taxpayers can reap considerable tax benefits by improving their home's energy efficiency - not to mention the long-term savings they'll incur from reducing their utility and fuel bills.
Here are a few highlights:
l The total tax credit you can claim for many energy-efficiency home improvements made during 2009 and 2010 has increased from $500 to $1,500. That's a cumulative total of $1,500, so you can break it up between the two years however you choose.
l You may now claim a tax credit for 30 percent of the purchase price for a variety of home improvements, up to the $1,500 limit. Credit for installation costs is also allowed in certain cases, such as for HVAC (heating, ventilation and air conditioning) systems, biomass stoves, water heaters, solar panels, geothermal heat pumps, wind energy systems and fuel cells.
Tax credits for many energy-efficiency home improvements that were previously allowed in 2006 and 2007 but then disallowed in 2008 are once again eligible during 2009 and 2010. Some common covered expenses include:
l Home shell improvements designed to prevent heating and cooling leaks, including insulation, metal and asphalt roofs, exterior and storm windows, doors (including patio and sliding glass), skylights and weather stripping.
l HVAC systems, including central air conditioning, air-source and geothermal heat pumps, and natural gas, propane and oil furnaces.
l Gas, oil, propane, solar and electric heat pump water heaters.
l Biomass (plant matter) stoves.
l Other renewable energy technology including small wind generators and photovoltaic systems.
l Hybrid, diesel, battery electric, alternative fuel, fuel cell and plug-in electric cars.
Note that there are specific requirements and restrictions for each of these products, so be sure to do your research before purchasing them. For example, with vehicles, there are only a finite number of credits available per manufacturer, so verify with the dealer.
A good resource for rules is the government's Energy Star Web site, which has detailed information on the various tax credits available (www.energystar.gov/taxcredits).
A few additional tips:
l Experts agree that before making major investments like HVAC systems or solar panels, you should first improve your home's insulation. Proper insulation can reduce your heating and cooling bills by 20 percent or more.
- Save all receipts and ask contractors to separate labor and materials costs in case you are ever audited. Also keep copies of manufacturer certification statements for your records.
l Even though they aren't covered under the federal tax credit program, many other Energy Star appliances like refrigerators, washing machines and dishwashers may qualify for certain state and local rebate programs. These energy-efficient appliances consume up to 50 percent less electricity and water than standard models. Ask for details where you buy the appliance.
Feel good about the impact you can have on the environment - and on your wallet - by taking advantage of these energy-efficiency tax credits.
Corporations aren't the only ones receiving incentives, however: Individual taxpayers can reap considerable tax benefits by improving their home's energy efficiency - not to mention the long-term savings they'll incur from reducing their utility and fuel bills.
Here are a few highlights:
l The total tax credit you can claim for many energy-efficiency home improvements made during 2009 and 2010 has increased from $500 to $1,500. That's a cumulative total of $1,500, so you can break it up between the two years however you choose.
l You may now claim a tax credit for 30 percent of the purchase price for a variety of home improvements, up to the $1,500 limit. Credit for installation costs is also allowed in certain cases, such as for HVAC (heating, ventilation and air conditioning) systems, biomass stoves, water heaters, solar panels, geothermal heat pumps, wind energy systems and fuel cells.
Tax credits for many energy-efficiency home improvements that were previously allowed in 2006 and 2007 but then disallowed in 2008 are once again eligible during 2009 and 2010. Some common covered expenses include:
l Home shell improvements designed to prevent heating and cooling leaks, including insulation, metal and asphalt roofs, exterior and storm windows, doors (including patio and sliding glass), skylights and weather stripping.
l HVAC systems, including central air conditioning, air-source and geothermal heat pumps, and natural gas, propane and oil furnaces.
l Gas, oil, propane, solar and electric heat pump water heaters.
l Biomass (plant matter) stoves.
l Other renewable energy technology including small wind generators and photovoltaic systems.
l Hybrid, diesel, battery electric, alternative fuel, fuel cell and plug-in electric cars.
Note that there are specific requirements and restrictions for each of these products, so be sure to do your research before purchasing them. For example, with vehicles, there are only a finite number of credits available per manufacturer, so verify with the dealer.
A good resource for rules is the government's Energy Star Web site, which has detailed information on the various tax credits available (www.energystar.gov/taxcredits).
A few additional tips:
l Experts agree that before making major investments like HVAC systems or solar panels, you should first improve your home's insulation. Proper insulation can reduce your heating and cooling bills by 20 percent or more.
- Save all receipts and ask contractors to separate labor and materials costs in case you are ever audited. Also keep copies of manufacturer certification statements for your records.
l Even though they aren't covered under the federal tax credit program, many other Energy Star appliances like refrigerators, washing machines and dishwashers may qualify for certain state and local rebate programs. These energy-efficient appliances consume up to 50 percent less electricity and water than standard models. Ask for details where you buy the appliance.
Feel good about the impact you can have on the environment - and on your wallet - by taking advantage of these energy-efficiency tax credits.
New Vehicles Tax Credit for Delawareans in 2009
Delawareans won't miss out on a tax deduction for the purchase of new vehicles this year just because the state doesn't have a sales tax.
The Treasury Department and Internal Revenue Service announced that purchases made in states without a sales tax -- such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon -- can qualify for other deductions.
The ruling is a tweak to the federal stimulus package, which allows deductions for state or local sales or excise taxes paid on the new-car purchase.
Delaware's vehicle document fee -- 3.75 percent of the purchase price or National Automobile Dealers Association book value, whichever is greater -- now qualifies for a tax credit under the stimulus package for cars purchased in 2009, according to the state's congressional delegation.
The delegation's members -- Democratic Sens. Tom Carper and Ted Kaufman, and Republican Rep. Mike Castle -- said they sent several letters requesting that the document fee be eligible.
"This is an important and positive decision that will encourage Delawareans to purchase new cars and help boost our state's economy," Carper said. "It was always Congress' intent for the document fee to be eligible for the federal tax credit."
To qualify for the deduction, a vehicle must have been purchased after Feb. 16, 2009, and before Jan. 1, 2010, according to the Treasury. The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers can claim the deduction only on their 2009 tax returns filed next year.
The deduction is limited to the fees or taxes on up to $49,500 of the purchase price of a qualified new car, light truck, motor home, or motorcycle.
The amount of the deduction is phased out for individual taxpayers whose modified adjusted gross income is between $125,000 and $135,000, and for joint filers whose modified adjusted gross income is between $250,000 and $260,000, according to Treasury.
Castle said the ruling levels the playing field for Delawareans.
Kaufman said it will encourage more vehicle purchases, providing "much needed support to our state's struggling auto dealerships."
The Treasury Department and Internal Revenue Service announced that purchases made in states without a sales tax -- such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon -- can qualify for other deductions.
The ruling is a tweak to the federal stimulus package, which allows deductions for state or local sales or excise taxes paid on the new-car purchase.
Delaware's vehicle document fee -- 3.75 percent of the purchase price or National Automobile Dealers Association book value, whichever is greater -- now qualifies for a tax credit under the stimulus package for cars purchased in 2009, according to the state's congressional delegation.
The delegation's members -- Democratic Sens. Tom Carper and Ted Kaufman, and Republican Rep. Mike Castle -- said they sent several letters requesting that the document fee be eligible.
"This is an important and positive decision that will encourage Delawareans to purchase new cars and help boost our state's economy," Carper said. "It was always Congress' intent for the document fee to be eligible for the federal tax credit."
To qualify for the deduction, a vehicle must have been purchased after Feb. 16, 2009, and before Jan. 1, 2010, according to the Treasury. The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers can claim the deduction only on their 2009 tax returns filed next year.
The deduction is limited to the fees or taxes on up to $49,500 of the purchase price of a qualified new car, light truck, motor home, or motorcycle.
The amount of the deduction is phased out for individual taxpayers whose modified adjusted gross income is between $125,000 and $135,000, and for joint filers whose modified adjusted gross income is between $250,000 and $260,000, according to Treasury.
Castle said the ruling levels the playing field for Delawareans.
Kaufman said it will encourage more vehicle purchases, providing "much needed support to our state's struggling auto dealerships."
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