As of today, tax credits will no longer be available on the Toyota Prius, Highlander Hybrid and Camry Hybrid, or on the Lexus GS 450h and RX 400h.
They sold too many, were too successful and must be punished so others can prosper. It's an odd twist on the free market by the federal tax code. A trapdoor was built into the tax code to cut incentives for buying from successful manufacturers in the event someone would run away with the market.
Credits will continue on manufacturers who missed the market sweet spot for hybrids until Jan. 1, 2009 when all credits end. At that point your only incentive will be making air less polluted and decreasing your dependence on foreign oil.
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