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IRS Cuts Prius Tax Break in Half

The insanity of the hybrid tax break cap is finally a reality: The IRS made it official this week that Toyota hit the 60,000-vehicle limit in 2006. That means the Toyota and Lexus tax break will be chopped in half in October. The $3,150 break for the Toyota Prius will fall to $1,575. Congress needs to rethink this sales-crimping limit through a tax credit on a type of technology that can reduce our addiction to foreign oil and cut vehicle global-warming pollution emissions by more than 80 percent on some vehicles. Let's get serious. We need a much more robust hybrid tax credit that puts more hybrids on the road -- not one that looks out first for those dinosaurs in Detroit ... The demand for hybrid-related breaks is huge and growing. In California, a new law would raise the ceiling on carpool lane access stickers for hybrids from 75,000 to 85,000. The bill is still wating for the governor's signature and 83,000 sticker applications already are pending ... More insurance breaks for hybrid owners are now available in Kansas and New Jersey ... Are officials in Washington state the first in the nation to buy significantly more hybrids than traditional gas-powered vehicles? In 2006, the state bought 218 gas-only vehicles, which was easily offset by the state's purchase of more than 400 gas/electric hybrids and nearly 400 gas/ethanol powered vehicles ...

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