Tax credits on Toyota hybrids being halved

Reduction starts Oct. 1 after carmaker reached limit set by Congress

WASHINGTON – Tax incentives for environmentally concerned drivers shopping for certain energy-efficient hybrids will soon start disappearing like autumn leaves.

The Internal Revenue Service said Wednesday its tax collectors have been told that Toyota this summer hit the legal production limit

The announcement means that federal tax credits for Toyota and Lexus hybrid vehicles will be cut in half beginning in October, the IRS said.

The $3,150 credit for the popular Toyota Prius, the largest hybrid tax credit available, will shrink to $1,575 on Oct 1.

AP