Toyota Motor Corp used major US tax credit for EVs

It was reported that Japan’s Toyota Motor Corporation’s new energy vehicles in the United States have used up all the tax credits . This means that the cost of buying a Toyota electric or hybrid vehicle will increase. According to current U.S. law, the first 200,000 new energy vehicles sold by car companies can receive a tax credit of $7,500  per vehicle, and the number of vehicles Toyota has received this subsidy has reached 20 10,000 caps .

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Only one electric vehicle in Toyota’s lineup is eligible for the tax credit, so most of the credit goes to the company’s plug-in hybrids, the Toyota Prius Prime and RAV4 Prime plug-in Hybrid vehicles are the two models that benefit the most.

Toyota’s luxury car brand Lexus also has an NX crossover plug-in hybrid, while its new all-electric SUV, the bZ4X, isn’t on the road until the tax credit expires, with first orders just starting. But a few weeks ago, Toyota began recalling the bZ4X due to an issue with wheels that could come off. Toyota said in its half-year sales report that it has sold 232 electric vehicles so far this year.

Toyota also plans to expand its electric vehicle business over the next few years, with plans to launch 30 electric vehicles in 2030 and 15 all-electric models by 2025. The company is building a battery factory in North Carolina to support the production of its electric vehicles, and has just partnered with lithium-ion battery recycling startup Redwood Materials to collect and recycle batteries and battery materials for use in future electric vehicles.

Toyota isn’t the first automaker to hit the 200,000-unit cap, with Tesla and General Motors also hitting the cap . GM, Toyota, Ford, Stellantis and several electric vehicle makers are lobbying the U.S. Congress to extend subsidies ahead of the November election, when Republicans could have a chance to take control of both houses of Congress.

Historically, conservative lawmakers in Congress have opposed EV subsidies. Auto experts and lawyers say this will make it difficult to achieve the U.S. government’s goal of electric vehicles making up 50 percent of all new vehicle sales by 2030.

However, customers who currently pre-order a Toyota will still receive the full tax credit as long as they deliver by the end of the quarter (September 30) . The Internal Revenue Service (IRS) needs to confirm that Toyota’s subsidy has been fully exhausted. After that, Toyota will also have four quarters to offer electric vehicle tax breaks to buyers. Buyers will be eligible for a $3,750 tax credit for the first two quarters. For the last two quarters, they’ll get $1,875 off.

To be clear, the U.S. federal tax credit isn’t a discount on the purchase of an electric vehicle, it’s a tax rebate that benefits taxpayers at the end of the fiscal year. So, if someone owes $10,000 in federal taxes, they can get a $7,500 tax rebate after buying an electric car, and only need to pay $2,500.

(via)