Perhaps, coming in to this discussion late I'm missing something.

Anyway, here goes. As I understand the tax credit, your taxes are reduced by that amount of the credit. It doesn't mean that you will get a refund of that amount.

I bought my Prius last Feb. I knew at that time I would be entitled to the full tax credit of 3150.00.

I just got my long form 1040's back from my accountant and - sure enough there was the 3150.00 credit. Now, that credit reduced my taxes by 3150 bucks, so as a result (well not the only reason, of course), we got a fed's tax refund of just over 300 bucks.

On the other hand, living in Calif., which gave me a sticker to ride solo in the car pool lane, I have to pay 1600 bucks.

Number of dependents, homes owned, distance driven or what ever has no bearing on the credit. What does is when you bought your Prius. Further, that credit does not come back to you as a refund.

centrider