Friday, July 19, 2024
NewsToyota has Run Out of US EV Tax Credits

Toyota has Run Out of US EV Tax Credits

Toyota’s eligibility for the $7,500 tax credit is over. Will this affect its sales?

  • They have sold their 200,000th EV in the US.

  • They now join Tesla and GM who’ve already run out of credits.

The question is legit enough as they’ve only just recently introduced their first full EV, the bZ4X. And that’s right, Toyota’s used up its 200,000-unit allocation selling plug-in hybrid vehicles.

2021 Toyota Prius Prime | Photo: Matt St-Pierre

Toyota is not the first automaker to hit the mark as Tesla and General Motors have both run out of tax credits for their customers looking to purchase an EV. Ford isn’t that far off from facing the same scenario which is why they, along with Toyota and the others, have actively lobbied Congress for an extension of the tax credits, according to Bloomberg.

For Toyota customers, not all is yet lost as, over the next 12 months, the credits will be halved twice before being cut completely. Some progress has been made with respect to EV credit as the Biden administration has proposed to offer an additional $4,500 in credits to unionized carmakers only. Unfortunately for Toyota, this does not help its cause.

Although Toyota’s PHEVs, namely the Prius Prime and RAV4 Prime, are flying off the proverbial shelves, the Japanese giant’s first full EV, the bZ4X, is already facing harsh criticism. Along with mediocre battery performance, it has already been recalled once.

The Toyota bZ4X AWD Might not Charge Below Freezing – UPDATE

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Matt St-Pierre
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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