I keep hearing about a tax rebate for 2K. Went to the IRS web site and found Form 8834 - Qualified Electric Vehicle Credit. This is a 4K tax credit for cars ran "primarily" on electric. Does anyone know if the Prius qualifies? I asked a tax specialist and his reply was "I am not familiar with that type of car." Any ideas?

I'm pretty sure that you can get up to a $2,000 taxable income deduction (not a tax credit) provided you buy the Prius new and take ownership by the end of this year. I think you also have to keep the car 3 years, and can't modify it in a way that would cancel out the 'clean-fuel' aspect. Leased vehicles and the TRAC cars supposedly don't qualify.<br><br>Look on the IRS web site for "clean fuel". I think it's publication 5535. There've been a few e-mails on the Prius bulletin boards discussing this and the possibilities of additional state tax deductions in Arizona and Maryland.<br><br>Paul.

BTW - The Prius doesn't qualify for the EV credit - it is not primarily an Electric vehicle...

Thanks for the info. I will check out publication 5535. Gee, It would be nice if I could take ownership by December 31. It probably will be more like January. Ordered it on 8/9 and confirmation letter stated mid December to January. The waiting game drives me crazy!!!!!!!!--Diana

I picked this information up on the Edmund's Prius forum regarding rebates:<br>

It's actually publication 535 and you have to search on clean-fuel or you won't find it. As I read the regulation it says that you are eligible for the deduction if buy the Prius and not lease. Then it says the deduction is the maximum of $2000 or the extra amount that the electric components add to the price of the Prius, whichever is smaller. If Toyota will confirm that the the Prius electric components cost at least $2000 then the $2000 deduction should apply.<br><br>--Joe