Like GM And Tesla, Toyota Running Out Of EV Tax Credits
10
Sponsored Links
Toyota has run through its available U.S. tax credits for electrified vehicles, prompting the automaker to voice concerns over higher vehicle prices and a possible roadblock to widespread EV adoption.
Per a recent report from Automotive News, Toyota announced last week that it sold a total of 3,876 plug-in hybrid and electric vehicles in June, bringing the Japanese automaker over the available tax credit cap.
The U.S. EV tax credit applies to both electric hybrid vehicles and fully electric vehicles, with upwards of $7,500 available to buyers. Toyota previously only offered hybrid models, such as the Toyota Prius, although the automaker is now launching the bZ4X, its first fully electric vehicle set for launch across the U.S.
That said, the U.S. EV tax credit is limited to 200,000 units per automaker. Toyota has since surpassed the cap, making it the third automaker to do so alongside GM and Tesla.
In its approach to the cap, Toyota has called for Congress to extend the available EV tax credits, joining GM, Ford, and Stallantis in asking that the cap be removed entirely to help combat climate change. However, the automakers vary in the way in which the new credits should be applied. For example, although GM, Ford, and Stellantis back a proposal from the Biden administration calling for an additional $4,500 tax credit for unionized automakers, Toyota and Tesla oppose the plan. The proposed incentive plan was since scrapped after pushback from Democratic senators and a lobby of foreign automakers.
Without additional tax credits from Congress, Toyota’s remaining EV tax credits are set to be reduced over a one-year period, a phase triggered once the IRS determines that the automaker has indeed hit the cap. Unfortunately for Toyota, the current high fuel prices and renewed interest in electrified vehicles across the U.S. make for poor timing with regard to a drawdown in available EV tax credits.
Subscribe to GM Authority for more GM business news, GM political news, GM electric vehicle news, GM technology news, and around-the-clock GM news coverage.
- Sweepstakes Of The Month: Win a Corvette Z06 and 2024 Silverado. Details here.
Sponsored Links
If EVs truly are worth the cost then they should stand on their own and the market should decide their fate.
I concur. We should have a free market. Not a subsidized government welfare credit.
Their should be a price point for E/V credits. Why should someone get a tax credit for an $80K vehicle. If you can afford an $80K vehicle, you don’t need the TAXPAYER to subsidize it!
… indeed, the guy who pays € 539989,89 for a Rolls Royce do not need subside
… neither me in 2013, came in store and paid € 7700 cash for my Dacia Sandero E10 & very happy with
… remember, all cars are still 4 wheels, stop in red light side by side and get fines from policemen, egal ob EVs… However very nice blue-greenish colour in this Toyota, of course won’t buy, but nice
I disagree. Why should there be any tax credit? Get rid of it.
China has most of the rare earth metals needed for the batteries and even if allowed to be mined here where available must be sent abroad for processing, a very dirty process. Our greenies don’t don’t seem to care as long as it’s not done in the US. Can we not put a couple of windmills on a SUV roof? Meanwhile China adds another new coal powered plant about every week or so. Lots of hidden problems with electric.
Newer cell chemistry uses iron and phosphorus so there is much less need of rare earths. There are more cellphones with “dirty processed” materials than electric vehicles (iPhones are made in China). Why put a windmill on an SUV? Do you mill wind?
Instead of a tax credit , I prefer a direct point of sale rebate, so anyone who buys an EV can qualify, because not everyone pays over $7,500 in Federal taxes, and some, such as myself, don’t pay any Federal taxes.
Finally only domestic brands should qualify, such as Ford, GM, Rivian, and Tesla. Neither Asian or European brands gets any rebate money since they don’t give any to U.S. brands in their home nations.
I’m glad they are running out of tax credits, why should I/we help pay for other people’s EV’s. If you want an EV pay for it yourself.
Tax credit doesn’t help for any incentives for the manufacturer’s to lower cost and MSRP.