2022-32: Toyota electric vehicle credits will start phasing out soon

Toyota has announced that it has sold over 200,000 electric vehicles, the threshold that triggers a phaseout of the full $7,500 IRC §30D New Qualified Plug-In Electric Drive Motor Vehicle Credit (EV Credit). According to news reports, the EV Credit will begin to phase out for Toyota electric vehicles purchased after September 30, 2022, at which time the credit will be reduced to $3,750, and then reduced again to $1,875 starting April 1, 2023. The credit for Toyota electric vehicles will phase out completely on October 1, 2023.

Let your clients know that if they are interested in purchasing an electric vehicle from Toyota, they should try to do so prior to October 1, 2022, to maximize the amount of the available federal credit. Tesla and General Motors are the only other car manufacturers that have reached the 200,000-vehicle limit for purposes of qualifying for the full credit.

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