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TOYOTA: MAY I HAVE SOME MORE CORPORATE WELFARE?

November 30, 2006

Poor Toyota. The tax law that has the government pay a rebate to buyers of "hybrid" cars only subsidizes 60,000 vehicles for each manufacturer. Toyota has hit its ceiling, and sales have fallen off. Toyota wants more welfare. From the TaxProf:

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.

"Help address energy concerns?" Give me a break.

This provision shows that the energy saving is incidental to this "green" tax break. By limiting the subsidies allowed to Toyota, the law steers buyers to the Big 3 automakers, who still have plenty of hybrids to sell before maxing out their subsidy. If the bill was really designed to save energy, it wouldn't distinguish between manufacturers, as long as lots of green cars get sold.

Still, it's hard to weep for Toyota. Live by the dole, die by the dole.

And remember: the Hybrid tax credit doesn't reduce alternative minimum tax.

Link: IRS fact sheets and releases on Hybrid credit.

Related: HYBRID HURRY

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