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#70 of 258 Tax credit analysis (Part II)
Aug 03, 2005 (11:03 am)
(for Part I, see post above)
Now, as a post above suggested, I did a google on "inertia weight class" and found some suggestions that for the Honda Civic Hybrid and the Toyota Prius are in the 3,000 IWC. The facts that I read said: (1) round down IW to determine IWC, (2) IW is approximated by adding 300 lbs. to stated (curb) weight, and (3) the HCH weighs 2,732 lbs., and the TP weighs 2,890 lbs. Using these 3 facts imply a 3,000 IWC for the HCH and the TP.
Also, I found a table that listed the HCH and the TP as 3,000 IWC. Incidentally, the Honda Insight was listed at 2,000 or 2,250 IWC in the same table, depending on the transmission.
It is not clear to me for table 2 what number to use for the fuel economy of the hybrid. However, since table 3 uses the current city fuel economy, I will use that when calculating ratios used in table 2.
Finally, here are the calculations:
the 2002 city fuel economy for the 3,000 IWC: 26.4 mpg
for the 2005 HCH CVT: 48 mpg
for the 2005 TP: 60 mpg
Thus, from table 2:
HCH CVT: 48/26.4 = 182% --> $1,200 credit
TP: 60/26.4 = 227% --> $2,000 credit
Note that the TP barely makes it into the $2,000 category.
And, from table 3:
HCH CVT: 120,000/26.4 - 120,000/48 = 2,045 gal saved --> $500
TP: 120,000/26.4 - 120,000/60 = 2,545 gal saved --> $750 credit
Note that the TP barely makes it into the $750 category.
Thus, the total credits are:
HCH CVT: $1,700
However, the TP numbers may be too optimistic. A spokesperson for Toyota in a
USA Today article on the new energy bill said the Prius may qualify for about $2,400.
I welcome critical evaluation of this analysis.
#71 of 258 Re: Tax credit analysis (Part II) [gentadventurer]
Aug 03, 2005 (12:25 pm)
I'm not sure, but the TP may be based on the combined mileage, not the highest mileage. I thought that the Prius Combined MPG was in the low fifties?
#72 of 258 Re: Tax credit analysis (Part II) [stevedebi]
Aug 03, 2005 (5:13 pm)
The document states "a fuel economy", but I can't seem to find out how it is defined. If, as you suggest, it's a weighted average of city and highway driving, then, consulting the EPA numbers, I'll try these numbers:
HCH CVT: 47 mpg (48 city/47 hwy)
TP: 54 mpg (60 city/51 hwy)
The credits from lifetime fuel savings remained unchanged:
The HCH CVT receives a $500 credit; the TP receives a $750 credit.
The credits for fuel economy improvement change for the TP:
Then, from table 2:
TP: 54/26.4 = 201% --> $1,600 credit
HCH CVT's total credit remains:
HCH CVT: $1,700
And the amended TP total credit is:
#73 of 258 Re: Tax credit analysis (Part II) [stevedebi]
Aug 03, 2005 (6:18 pm)
In you research did you find what incentives they will offer for diesel cars?
#74 of 258 Re: Tax credit analysis (Part II) [gentadventurer]
Aug 03, 2005 (7:13 pm)
Ok so this "vehicle inertia weight class" is a big deal b/c this is what the hybrid mileage is compared to. So I actually looked up 42 usc 7521. NOT ONCE does it ever mention "inertia." So ok, I check out 42 usc 7550 which is titled "Definitions." But guess what, no "inertia" mentioned at all. I'm thinking someone meant to write "Gross Vehicle Weight Rating" instead of "inertia weight class" If you look at the bill, p 1402, line 4-6, "blah blah passenger automobile or light truck and which has a GVWR of not more than 8500 lbs ..." and the table listing the 2002 city mileages which you're suppose to reference, goes up to 8500 lbs. hmmmm, I gotta wonder if I can use GVWR for my calculations.
IF that's the case, then a HH AWD should be eligible for $1600 + $1000 credit using a GVWR of 5500. What's interesting is the HH FWD- using the same assumptions, it actually qualifies for the $2000 fuel economy credit IF it uses the "Passenger Automobile" table instead of the "Light Truck" table. I'm also just using City MPG since that's whats labeled in the table headers.
#76 of 258 Energy Policy Act of 2005 Effective Date
Aug 15, 2005 (11:42 am)
I have been unable to determine if the new energy Policy Act of 2005 allows one to use a tax credit in purchasing a 2006 Toyota Prius prior to January 1, 2006. It seems some parts are effective the moment President Bush signed the new law. In the Section 1341 of HR6 it referes to "a new qualified hybrid motor vehicle placed in service by the taxpayer during the taxable year ..." Does that mean a 2006 hybrid can use the tax credit in 2005 if purchased and placed into service in 2005, like maybe late September or October? If this is not the case, then I would think the automobile dealers will have a very difficult time selling the new year models during the last 3 or so months of 2005.
#77 of 258 60k cars per manufacturer limit
Aug 17, 2005 (4:58 pm)
Anyone know how this limit on the # vehicles for which the tax credit is applicable, is going to be implemented? How does a buyer know that his is one of the 1st 60k vehicles sold by the manufacturer after the bill's effective date? I suppose if someone buys 2 eligible vehicles, he can't claim the credit twice. But his 2nd credit would be lost; that credit wouldn't go to 60001st buyer?
#78 of 258 Re: 60k cars per manufacturer limit [chickensoup]
Aug 17, 2005 (5:05 pm)
Welcome to the forum. That is a darn good question that I have had also. When it gets down to the wire and a dealer in CA sells number 60k the same time a dealer in NY sells # 60k, who gets the tax break. Like was said before I think this was put in to equalize the playing field. Right now Toyota is the only one that would be able to build 60k hybrids in one year. Honda my gear up for that kind of sales. None of the Big 3 will sell that many in 2006. Unless it includes diesel cars with high mileage. Then all the majors will get involved.
#79 of 258 Re: 60k cars per manufacturer limit [gagrice]
Aug 17, 2005 (7:56 pm)
The law is kinda hard to read, but the credit is phased out the 2nd quarter after a manufacturer sells 60k hybrids. So let's say from Jan-Mar, toyota sells 59,999 hybrids. Then toyota presumably hits their quota during Q2. So anyone who buys their hybrid between Q1 through Q3 gets the FULL credit. Q4 and Q1 07 get 50% credit, and Q2 and Q3 07 get 25% credit.
You don't have to be one of the first 60,000 hybrids- you just have to buy it within 3-5 months after the 60,000th hybrid is sold to get the FULL credit.