Toyota’s EV Tax Credit Program Is Coming to an End

Toyota's EV Tax Credit Program Is Coming to an End

If You’re Going To Jump On The EV Bandwagon, You Need To Do It Now

( – Over the last few months, President Joe Biden has pushed Americans to ditch gasoline-guzzling vehicles for expensive battery-powered ones. If you want to take advantage of the government’s generous tax credits for purchasing an electric or hybrid vehicle, now is the time to act. In 2009, Congress extended the EV tax credit program. Now, many electric vehicle makers are closing in on purchase thresholds. Toyota is among them.

Toyota recently surpassed 200,000 sales of plug-in vehicles under the EV tax credit program, triggering the beginning of the program’s phase-out. So, how does the law work? After a car company sells 200,000 electric vehicles or hybrids, the federal tax credits begin to wane. The figure cuts in half every six months until it reaches zero.

Toyota says the full $7,500 tax credit is available through September. From October to March 2023, the benefit will drop to $3,750. From April to September 2023, it will drop again to $1,875. At that point, tax rebates will no longer be available unless Congress extends the credit.

The other companies to join Toyota include General Motors and Tesla. Ford and Nissan are also close to hitting the 200,000 thresholds on their vehicles. Opponents of the tax credit say the wealthy are the ones who benefit from the plan, adding that the government shouldn’t be in the business of subsidizing businesses or innovations. Supporters argue the tax credits help the public transition to renewable energies faster and lower the cost of the already pricey vehicles.

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