PR: Lexus RX 400h Luxury Hybrid Vehicle Is Eligible for up to $2,000 Tax Deduction
05-06-05, 03:18 PM
#1
Lexus Connoisseur
Thread Starter
PR: Lexus RX 400h Luxury Hybrid Vehicle Is Eligible for up to $2,000 Tax Deduction
05/06/2005 Torrance, CA
May 6, 2005 - - Lexus announced today that it had received official notification from the Internal Revenue Service (IRS) that the 2006 model year RX 400h is certified for a clean-burning fuel deduction. This certification means that taxpayers who purchase a new RX 400h during calendar year 2005 may claim a tax deduction of up to $2,000 on Form 1040.
"Lexus RX 400h purchasers can use or take this certification to their individual tax advisors to determine how they can take full advantage of this important federal tax benefit," said Bob Carter, Lexus group vice president and general manager.
Under the Working Families Relief Act of 2004, the clean-burning fuel deduction is limited to up to $2,000 for certified vehicles first put into service in 2005 and $500 for vehicles placed in service in 2006. Currently, no tax deduction will be allowed by the IRS after 2006.
Federal law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean-burning fuel. In a May 5, 2005 statement, the IRS stated that, "By combining electric motors with a gasoline engine, hybrid vehicles obtain greater fuel efficiency and produce fewer emissions than similar vehicles powered solely by conventional gasoline-powered engines."
This one-time deduction is for purchasers only and must be taken in the year the vehicle is put into service. The IRS does not allow the deduction for lessees. The taxpayer must be the original owner and individuals do not have to itemize deductions on their tax return to claim this deduction. This benefit can be taken as an adjustment to income on the 1040 Form.
In addition, many states offer additional tax incentives for hybrid vehicles. RX 400h purchasers are encouraged to check with their tax preparer or financial consultant for specific information regarding possible state tax incentives.
As automakers rush to bring more environmentally responsible products to market, one thing is clear — not all hybrid-electric vehicles are created equal. For example, the Lexus RX 400h hybrid powertrain adds high-performance to the traditional hybrid advantages of improved fuel economy and low emissions, and it was developed to meet the load-carrying and performance requirements of a sport utility vehicle. Importantly, the RX 400h hybrid is rated a Super Ultra Low Emissions Vehicle (SULEV) — one of the most-stringent emissions ratings in the industry— and the reason it qualifies for a clean-burning fuel tax deduction. For a further reduction of harmful gases, the RX 400h is equipped with a unique exhaust system that absorbs hydrocarbons emitted when the engine is first started with a cold catalytic converter. After the catalyst has a chance to warm up, the hydrocarbons are slowly purified.
The RX 400h delivers a combined horsepower of 268, matching the performance of a V8-powered luxury SUV while delivering a combined EPA fuel economy rating of 29 mpg, which is slightly better than the average for a four-cylinder compact sedan and more than a 100 percent improvement compared to V8 SUVs. Even more impressive is how quickly and powerfully torque is delivered during mid-range acceleration. The RX 400h’s electric motors are capable of delivering maximum torque, immediately upon demand. This unique power delivery characteristic is most noticeable and most useful during the frequent 30-50 mile-per-hour passing and merging maneuvers.
Lexus has designed its hybrid system to make its operation feel seamless to the driver. The hybrid system works by employing two power sources, a 3.3-liter V6 gasoline engine and a pair of electric-drive motors. It then creates and maintains total synergy between the gas engine and electric motors under all driving conditions. The batteries which power the electric motors never require external charging because recharging is generated internally. Hybrids typically get higher mileage in stop-and-start city traffic than they do on the open road, and the RX 400h is no exception with an EPA city rating of 31 mpg and a highway rating of 27 mpg.
The key component for coordinating low emissions and higher fuel efficiency is the proprietary Lexus Hybrid System, which lets the RX 400h operate on either electricity, gasoline or a combination of both. No competitive luxury hybrid vehicle can achieve this level of powertrain versatility
Credit: Lexus USA
May 6, 2005 - - Lexus announced today that it had received official notification from the Internal Revenue Service (IRS) that the 2006 model year RX 400h is certified for a clean-burning fuel deduction. This certification means that taxpayers who purchase a new RX 400h during calendar year 2005 may claim a tax deduction of up to $2,000 on Form 1040.
"Lexus RX 400h purchasers can use or take this certification to their individual tax advisors to determine how they can take full advantage of this important federal tax benefit," said Bob Carter, Lexus group vice president and general manager.
Under the Working Families Relief Act of 2004, the clean-burning fuel deduction is limited to up to $2,000 for certified vehicles first put into service in 2005 and $500 for vehicles placed in service in 2006. Currently, no tax deduction will be allowed by the IRS after 2006.
Federal law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean-burning fuel. In a May 5, 2005 statement, the IRS stated that, "By combining electric motors with a gasoline engine, hybrid vehicles obtain greater fuel efficiency and produce fewer emissions than similar vehicles powered solely by conventional gasoline-powered engines."
This one-time deduction is for purchasers only and must be taken in the year the vehicle is put into service. The IRS does not allow the deduction for lessees. The taxpayer must be the original owner and individuals do not have to itemize deductions on their tax return to claim this deduction. This benefit can be taken as an adjustment to income on the 1040 Form.
In addition, many states offer additional tax incentives for hybrid vehicles. RX 400h purchasers are encouraged to check with their tax preparer or financial consultant for specific information regarding possible state tax incentives.
As automakers rush to bring more environmentally responsible products to market, one thing is clear — not all hybrid-electric vehicles are created equal. For example, the Lexus RX 400h hybrid powertrain adds high-performance to the traditional hybrid advantages of improved fuel economy and low emissions, and it was developed to meet the load-carrying and performance requirements of a sport utility vehicle. Importantly, the RX 400h hybrid is rated a Super Ultra Low Emissions Vehicle (SULEV) — one of the most-stringent emissions ratings in the industry— and the reason it qualifies for a clean-burning fuel tax deduction. For a further reduction of harmful gases, the RX 400h is equipped with a unique exhaust system that absorbs hydrocarbons emitted when the engine is first started with a cold catalytic converter. After the catalyst has a chance to warm up, the hydrocarbons are slowly purified.
The RX 400h delivers a combined horsepower of 268, matching the performance of a V8-powered luxury SUV while delivering a combined EPA fuel economy rating of 29 mpg, which is slightly better than the average for a four-cylinder compact sedan and more than a 100 percent improvement compared to V8 SUVs. Even more impressive is how quickly and powerfully torque is delivered during mid-range acceleration. The RX 400h’s electric motors are capable of delivering maximum torque, immediately upon demand. This unique power delivery characteristic is most noticeable and most useful during the frequent 30-50 mile-per-hour passing and merging maneuvers.
Lexus has designed its hybrid system to make its operation feel seamless to the driver. The hybrid system works by employing two power sources, a 3.3-liter V6 gasoline engine and a pair of electric-drive motors. It then creates and maintains total synergy between the gas engine and electric motors under all driving conditions. The batteries which power the electric motors never require external charging because recharging is generated internally. Hybrids typically get higher mileage in stop-and-start city traffic than they do on the open road, and the RX 400h is no exception with an EPA city rating of 31 mpg and a highway rating of 27 mpg.
The key component for coordinating low emissions and higher fuel efficiency is the proprietary Lexus Hybrid System, which lets the RX 400h operate on either electricity, gasoline or a combination of both. No competitive luxury hybrid vehicle can achieve this level of powertrain versatility
Credit: Lexus USA
05-06-05, 03:32 PM
#2
Lexus Connoisseur
Thread Starter
Originally Posted by Lexus USA
]the RX 400h is no exception with an EPA city rating of 31 mpg and a highway rating of 27 mpg.
05-06-05, 04:58 PM
#3
Good news! This will really help brighten the financial picture, and improve the case for buying hybrids. Incidentally, I had my first public RX 400h sighting today...in a parking garage, I saw a brand new "Elite Lexus" RX 400h...admired the unique rims.
05-06-05, 05:12 PM
#5
Lexus Connoisseur
Thread Starter
Makes me wonder how well the GS450h's fuel economy will be. sounds very promising.
05-06-05, 05:26 PM
#6
Racer
Join Date: Dec 2004
Location: so. cal
Posts: 1,789
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by flipside909
Makes me wonder how well the GS450h's fuel economy will be. sounds very promising.
05-07-05, 03:23 AM
#7
Lead Lap
Join Date: Sep 2004
Location: VA
Posts: 661
Likes: 0
Received 0 Likes
on
0 Posts
If you look at overall hybrid registrations they are the highest in states that allow HOV lane use by hybrids. In the No. VA (DC) area it's probably a very important reason for the purchase of a hybrid. For those folks, HOV lane use is probably even more important than the 2K tax break.
If Bush's plan on alternative fuel vehicle tax breaks becomes reality, diesels will get the same break as the hybrids now enjoy.
If Bush's plan on alternative fuel vehicle tax breaks becomes reality, diesels will get the same break as the hybrids now enjoy.
Trending Topics
05-07-05, 01:57 PM
#8
Racer
Join Date: Dec 2004
Location: so. cal
Posts: 1,789
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by biker
If you look at overall hybrid registrations they are the highest in states that allow HOV lane use by hybrids. In the No. VA (DC) area it's probably a very important reason for the purchase of a hybrid. For those folks, HOV lane use is probably even more important than the 2K tax break.
If Bush's plan on alternative fuel vehicle tax breaks becomes reality, diesels will get the same break as the hybrids now enjoy.
If Bush's plan on alternative fuel vehicle tax breaks becomes reality, diesels will get the same break as the hybrids now enjoy.
Importantly, the RX 400h hybrid is rated a Super Ultra Low Emissions Vehicle (SULEV) — one of the most-stringent emissions ratings in the industry— and the reason it qualifies for a clean-burning fuel tax deduction.
05-07-05, 02:02 PM
#9
Lexus Connoisseur
Thread Starter
Originally Posted by biker
If you look at overall hybrid registrations they are the highest in states that allow HOV lane use by hybrids. In
05-08-05, 01:41 AM
#10
Lead Lap
Join Date: Sep 2004
Location: VA
Posts: 661
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by flipside909
That's false. CA has the highest registered amount of Hybrid vehicles...specifically SoCal. Because of gas prices, we account for a big percentage of hybrid sales due to it's demand and popularity. You're not in the United States to judge what states have the most hybrid vehicle registrations. And for the record, the bill to allow Hybrid vehicles into HOV lanes has yet to passed here in the state of CA.
Whenever something new comes out there's going to be some demand. At the current prices (for the vehicle and gas), most hybrids on economics alone don't make sense (the pay back period on the gas milage savings is longer than most people keep the car). The use of an HOV lane however is priceless for road rage prone commuters.
Last edited by biker; 05-08-05 at 02:19 AM.
05-08-05, 02:18 AM
#11
Lead Lap
Join Date: Sep 2004
Location: VA
Posts: 661
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by xioix
diesels are not as clean as hybrids, so i dont think they will get it
If emissions was the only driving force, there are plenty of regular gas powered SULEV vehicles that could qualify. Virtually all cars will be SULEV within a couple of years.
The emissions game that CA is impossing on the rest of the industry is getting to the point of diminishing returns. An SULEV car emits as much polutants in 100K miles as spilling 1 qt of gas on the ground. As an old Volvo commercial once pointed out, in some places new cars' tailpipe emissions are cleaner than the air going into the air cleaner.
05-08-05, 03:07 AM
#12
Racer
Join Date: Dec 2004
Location: so. cal
Posts: 1,789
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by biker
Bush's plan doesn't want to subsidize cleanliness directly, just alternative fuels as a way to curb overall demand for gas. So the Civic GX gets it (natural gas), some diesels get it, some hybrids, etc.
If emissions was the only driving force, there are plenty of regular gas powered SULEV vehicles that could qualify. Virtually all cars will be SULEV within a couple of years.
The emissions game that CA is impossing on the rest of the industry is getting to the point of diminishing returns. An SULEV car emits as much polutants in 100K miles as spilling 1 qt of gas on the ground. As an old Volvo commercial once pointed out, in some places new cars' tailpipe emissions are cleaner than the air going into the air cleaner.
If emissions was the only driving force, there are plenty of regular gas powered SULEV vehicles that could qualify. Virtually all cars will be SULEV within a couple of years.
The emissions game that CA is impossing on the rest of the industry is getting to the point of diminishing returns. An SULEV car emits as much polutants in 100K miles as spilling 1 qt of gas on the ground. As an old Volvo commercial once pointed out, in some places new cars' tailpipe emissions are cleaner than the air going into the air cleaner.
Importantly, the RX 400h hybrid is rated a Super Ultra Low Emissions Vehicle (SULEV) — one of the most-stringent emissions ratings in the industry— and the reason it qualifies for a clean-burning fuel tax deduction.
05-08-05, 10:40 AM
#13
Lexus Connoisseur
Thread Starter
Originally Posted by biker
If you look at overall car registration, the hybrids don't follow the same percentage. VA has the second highest hybrid registrations although it's probably barely in the top 10 of overall registrations. If you watch this weeks' Motorweek, they have a segement about PHIL (the at home natural gas filling station for the Civic GX). One of the main reasons those folks got it is the ability to use HOV lanes. BTW, in that same episode you'll notice that in the test of the hybrid Highlander, the actual combined gas milage obtained (while 30% better than a the gas version) is still below both the city and hwy EPA estimates.
Whenever something new comes out there's going to be some demand. At the current prices (for the vehicle and gas), most hybrids on economics alone don't make sense (the pay back period on the gas milage savings is longer than most people keep the car). The use of an HOV lane however is priceless for road rage prone commuters.
Whenever something new comes out there's going to be some demand. At the current prices (for the vehicle and gas), most hybrids on economics alone don't make sense (the pay back period on the gas milage savings is longer than most people keep the car). The use of an HOV lane however is priceless for road rage prone commuters.
I don't really follow what's in VA, but here in CA, hybrid demand is up considering many Californians drive short trips to work or run errands. Hybrid usage here is mainly local around the town use which is perfect especially w/the price of unleaded gasoline inflated. That is a big reason why there are more hybrid vehicle registrations here in CA than any other place in the world. We have the most cars registered here in one state than any other in the world..majority of them are sold here in Southern California. So what's your point? Hybrid sales accounted here aren't because of HOV lane usage. If that was the case, the CNG and 100% electric vehicle sales would be up exponentially here in CA (those are the only vehicles that can be registered in CA for 1 passenger HOV lane usage). Unfortunately that was never the case. But then again the facts are the facts, not speculation you hear through the media. It's not like you use HOV lanes where you are, so why even bother making an argument. If you were on your bike here in CA, you would be able to use the HOV lanes yourself. Is your background in Economics?
Last edited by flipside909; 05-08-05 at 03:19 PM.
05-08-05, 03:08 PM
#15
Racer
Join Date: Dec 2004
Location: so. cal
Posts: 1,789
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by flipside909
Again, you're seeing/hearing this through media sources all the way over in Switzerland. Unless you live here or work closely w/the automotive industry or DMV, you really don't know what's going on. I don't really follow what's in VA, but here in CA, hybrid demand is up considering many Californians drive short trips to work or run errands. Hybrid usage here is mainly local around the town use which is perfect especially w/the price of unleaded gasoline inflated. That is a big reason why there are more hybrid vehicle registrations here in CA than any other place in the world. We have the most cars registered here in one state than any other in the world..majority of them are sold here in Southern California. So what's your point? Hybrid sales accounted here aren't because of HOV lane usage. If that was the case, the CNG and 100% electric vehicle sales would be up exponentially here in CA (those are the only vehicles that can be registered in CA for 1 passenger HOV lane usage). Unfortinately that was never the case. But then again the facts are the facts, not speculation you hear through the media. It's not like you use HOV lanes where you are, so why even bother making an argument. If you were on your bike here in CA, you would be able to use the HOV lanes yourself. Is your background in Economics?
I don't really follow what's in VA, but here in CA, hybrid demand is up considering many Californians drive short trips to work or run errands. Hybrid usage here is mainly local around the town use which is perfect especially w/the price of unleaded gasoline inflated. That is a big reason why there are more hybrid vehicle registrations here in CA than any other place in the world. We have the most cars registered here in one state than any other in the world..majority of them are sold here in Southern California. So what's your point? Hybrid sales accounted here aren't because of HOV lane usage. If that was the case, the CNG and 100% electric vehicle sales would be up exponentially here in CA (those are the only vehicles that can be registered in CA for 1 passenger HOV lane usage). Unfortinately that was never the case. But then again the facts are the facts, not speculation you hear through the media. It's not like you use HOV lanes where you are, so why even bother making an argument. If you were on your bike here in CA, you would be able to use the HOV lanes yourself. Is your background in Economics?