Does anyone have a 'final' answer on the tax deduction question?<br><br>I downloaded the 2000 form 8834 which is the Qualified Electric Vehicle Credit. It has a very specific paragraph saying that Hybrids are NOT QEV's.<br><br>It goes on to recommend Pub 535 to determine the amount of deduction for a 'clean fuel vehicle'.<br><br>Chapter 12 (pages 43-45) Leads you down the path of determing the portion of the vehicle cost which is attributable

The batteries are at least $3,000, and I remember $15,000 to replace the Transmission w/electric Motors.<br><br>I thought someone had obtained a letter from Toyota documenting the extra cost of the Hybrid System, as backup for taking the full deduction.<br><br>At the least I'll take the deduction, but will be reviewing that credit in detail before I'll be filling out the tax forms...<br><br>The only situations I'm aware of that would prevent you taking the tax deduction are if you didn't take ownership of the car prior the end of 2000, or bought a demo (TRAC) or port car. The latter are legally "used" vehicles, you've got to buy the Prius as a "new" vehicle.<br><br><br>Paul R.

Also, the Prius sticker price was about $5,000 (U.S.) more than a similarly equipped Echo. Granted, the fit/finish of the Prius is much better than the Echo (IMO), but probably not justifying the difference in price between the two cars. The Clean Air specific components have to easily be at least $2,000 of the difference.<br><br>Paul R.

When I was first looking at the Prius - the dealer told me that you could get a tax deduction for this car. Was this a slick selling point?<br>I am going to push this issue at income tax time.

Ask your dealer to give you a copy of the letter from Toyota stating that you can take a federal tax deduction up to $2000 of the value of the auto.<br><br>A tax deduction is &lt;tax rate&gt; * $2000<br><br>A tax credit is money in the pocket which would be $2000 if this were a ZEV (zero emmision vehicle)<br><br>The Prius is NOT a ZEV.