Bad news for potential Toyota BZ4X buyers; Toyota hit the 200,000 plug-in vehicle sales mark, which means BEV and PHEV vehicles from the brand will soon not be eligible for federal tax incentives.
The United States’s EV tax credit program can give buyers of plug-in vehicles a tax credit worth $7,500. But, automakers are removed from the program when they sell more than 200,000 worth of plug-in vehicles. Once the automaker crosses that line, a phaseout program starts; Toyota and Lexus vehicles will be eligible for the full tax credit until the end of Q3. Then, over the next two quarters, the benefit will be halved. After those two quarters, it will be halved once more, then removed entirely. Toyota is the third manufacturer to no longer qualify for tax credit incentives. First, Tesla hit the mark in July 2018, then General Motors also reached the phase-out clause by April 2020.
Right now, the Toyota BZ4X, RAV4 Prime, and Prius Prime are still eligible for the full tax credit, but not for long. When Q4 starts on October 1, the $7,500 tax credit will only be worth $3,750. By October 1, 2023, no Toyota plug-in vehicle will qualify for any federal tax credit.
Although this isn’t great news for buyers that are considering the Toyota BZ4X, the mechanically similar Subaru Solterra won’t be affected by the phase-out. Subaru hasn’t sold many plug-in vehicles, which means the brand is still very much eligible for the full $7,500 credits. Still, if you want a Toyota EV or PHEV, now’s the time to do it.
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The post Toyota Sold More Than 200,000 Plug-In Vehicles and Will No Longer be Eligible for $7,500 Tax Credit appeared first on AutoGuide.com.