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Toyota buyers will soon lose US electric vehicle tax credits | Associated Press

Detroit (AP) — Toyota customers will soon be unable to obtain a US federal tax credit to purchase electric or hybrid vehicles.

Toyota’s North American sales manager, Bob Carter, said Wednesday that automakers expect credit limits to reach 200,000 by the end of June. After that, credits will be phased out next year and reach zero, as Tesla and General Motors have already done.

Lack of credit is a problem for automakers moving from oil cars to batteries to reduce emissions, meet government fuel economy standards, and combat climate change. Nissan has about 30,000 vehicles by the time it reaches the cap, followed by other vehicles as more EVs are introduced.

The world’s top electric car sellers, Tesla and GM, are already at a price disadvantage to other automakers without credit, and Toyota will soon. An additional EV tax credit is included in the Buildback Better Spending Bill backed by President Joe Biden. I’m stuck in Congress..

Toyota has reached the limit mainly by selling plug-in gas-electric hybrid vehicles. The company’s plug-in RAV4 Prime compact SUV has a 42-mile electrical range and allows buyers to earn up to $ 7,500 credits available. The Prius Prime plug-in with a 25-mile microwave earns $ 4,500. Toyota had previously offered a fully electric RAV4, but it was canceled due to poor sales. This summer, we are rolling out a fully electric model called the bZ4X, which is 250 miles on a single charge.

The Build Back Better Bill will charge EV buyers for sales by 2026 with a $ 7,500 tax credit. However, the following year, only electric vehicles manufactured in the United States will be credited. Also, if the vehicle is manufactured in a US factory operated under a collective bargaining agreement negotiated by the union, the base credit will increase by $ 4,500. Only for GM, Ford and Stellantis vehicles.

In a conference call with reporters, Carter said Toyota opposed additional credit only to union factories and was unfair to non-union workers. “It just has to be a place of equal competition,” Carter said. “We are not anti-EV credits.”

Democrats who support EV credits made by the United Auto Workers say it’s good for the economy and the community to support the union’s work because the union has helped build the middle class.

GM CEO Mary Barra said automakers who provided electric vehicles early should not be at a disadvantage.

Credit recovery is “a problem that Congress really needs to solve,” Carter said.

Toyota plans to offer 30 fully electric vehicles from the Lexus and Toyota brands by 2030.

Copyright 2022 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.



Toyota buyers will soon lose US electric vehicle tax credits | Associated Press

Source link Toyota buyers will soon lose US electric vehicle tax credits | Associated Press

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