Toyota Seeks Restoration of Tax Credit as Hybrid Sales Plummet

The AP reports today that Toyota hybrid sales have plummeted since the loss of the full $3,600 tax credit on October 1 and that the company is pushing for the restoration of the credit:

Toyota North American President Jim Press urged Congress Wednesday to extend federal tax credits for hybrid vehicles and accelerate its buying of hybrids and alternative fleet vehicles to help address energy concerns. A 2005 federal energy bill provided up to $3,600 in tax credits to U.S. consumers who buy hybrids, but Toyota Motor Corp. this summer hit the legal production limit -- 60,000 vehicles -- that are eligible for the full tax credit. Toyota officials said the automaker's U.S. hybrid sales in October dropped to its lowest levels since March, attributing the decline in demand in part to the reduced tax credits. The automaker also shifted production of some hybrids from Japan to the U.S.

Prior TaxProf Blog coverage:

• Toyota & Lexus Hybrid Buyers Lose Full Tax Credit on October 1 (8/12/06)
• Toyota & Lexus Hybrid Buyers Lose Full Tax Credit on October 1 (9/21/06)