Toyota Runs Out of US Tax Credits for EVs - Bloomberg.com: 07/01/2022

According to Bloomberg.com, as of last quarter, Toyota sold more than 200,000 EVs, in total over the years.


Therefore, for the Prius Prime, the Federal Tax Credit will be:

$4,502 for cars bought and ?delivered? until September 30th 2022.

$2,251 for cars bought and ?delivered? between October 1st 2022, until March 31st 2023.

$1,126 for cars bought and ?delivered? between April 1st, until September 30th 2023.


From a Federal Tax Consideration, the date is likely the "placed in service" date.
?Therefore, that might be the official delivery date?

Note: The official State-consider "placed in service" date may differ from State to State.
That may be different from what the tax Federal "placed in service" date.

Note, for people right on the cusp of a date, I suggest that you consult a tax attorney.
I am not a tax specialist, nor an attorney.
I'm a geek researcher/engineer.


Fwiw, some links:

Code:

Qualified Plug-In Electric Drive Motor Vehicles (IRC 30D)
https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit


IRC Section 30D(g) Qualified 2- or 3-Wheeled Plug-In Electric Drive Motor Vehicles
https://www.irs.gov/businesses/irc-section-30dg-qualified-2-or-3-wheeled-plug-in-electric-drive-motor-vehicles
Excerpt: (note, out dated)
Internal Revenue Code Section 30D(g) currently provides a credit for qualified 2-wheeled plug-in electric vehicles. The amount of the credit is 10 percent of the cost of any qualified 2-wheeled plug-in electric vehicle placed in service by the taxpayer during the taxable year and cannot exceed $2,500.


Qualified Plug-in Electric Drive Motor Vehicle Credit
https://www.irs.gov/pub/irs-pdf/f8936.pdf
Excerpt:
Line3 Enter date vehicle was placed in service (MM/DD/YYYY)


Instructions for Form 8936 (01/2022)
https://www.irs.gov/instructions/i8936
Excerpt: (note, out dated)
Credit for two-wheeled vehicles. The credit for qualified two-wheeled plug-in electric vehicles expired for vehicles acquired after 2021. However, if you acquired the two-wheeled vehicle in 2021, but placed it in service during 2022, you may still be able to claim the credit for 2022. Do not report two-wheeled vehicles acquired after 2021 on Form 8936 unless the credit is extended.


https://www.investopedia.com/terms/p/placed-in-service.asp
Excerpts:
===========
According to the Internal Revenue Service (IRS) Reg. Sec. 1.167(a)-(11)(e)(1), property is considered to be placed in service when it is "first placed in a condition or state of readiness and availability for a specifically assigned function." This may or may not coincide with the purchase date of a depreciable asset, depending on how a company interprets "state of readiness and availability." IRS's Reg. Sec. 1.46-3(d)(1)(ii) applies the same criterion as the above regulation for the purpose of an investment tax credit for the purchase of property.
...
If an asset is purchased and stored in a warehouse, but still needs to be fixed before use, the IRS will not consider it placed-in-service. The company thus will not be allowed to take depreciation charges to lower pretax income. Only when the asset is "placed in a state of readiness and availability for a specifically assigned function" will the IRS allow depreciation to commence. Buildings are usually considered placed-in-service when a certificate of occupancy is issued. However, there have been numerous disputes between companies and the IRS over the exact interpretation of the placed-in-service language.
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From:

Code:

https://www.bloomberg.com/news/articles/2022-07-01/toyota-runs-out-of-us-tax-credits-for-evs-joining-tesla-and-gm

Toyota Runs Out of US Tax Credits for Electric Cars, Joining Tesla and GM - Bloomberg

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Toyota Runs Out of US Tax Credits for EVs, Joining Tesla and GM
Automaker has crossed 200,000-car cap on $7,500 subsidy
July 1, 2022

Toyota Motor Corp. has used up a key US tax credit for hybrid and electric vehicles, a milestone that the automaker says will raise its costs and hinder adoption of climate-friendly cars.

The company said Friday that it sold 3,876 plug-in hybrid and electric cars in June. The US allows automakers to offer a $7,500 tax credit to buyers of fully or partly electric cars, but only up to 200,000 per company. Toyota’s cumulative sales of eligible vehicles have now surpassed that threshold, according to data compiled by Bloomberg and confirmed with the company.

The Japanese manufacturer becomes the third automaker to hit the limit, joining General Motors Co. and Tesla Inc. Demand for hybrid and electric vehicles has steadily grown in the US, especially as gasoline prices surge above $5 a gallon in some states.

Toyota and its rivals have lobbied Congress for an extension of the tax credits, but they disagree on who should be eligible. Toyota and Tesla oppose a proposal by the Biden administration to offer an additional $4,500 in credits to unionized carmakers, a position favored by GM, Ford Motor Co. and Stellantis NV.

Absent Congressional action, Toyota’s credits will gradually be reduced over a one-year period once the Internal Revenue Service determines the cap has been reached. The credits will be halved twice over 12 months before running out entirely.
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Thanks for catching the typo!
While I still could, I updated the original post.

While I still could, I updated the original post, and added a number of links.
From a Federal Tax Consideration, the date is likely the "placed in service" date.
Therefore, that might be the official delivery date?
Note, for people right on the cusp of a date, I suggest that you consult a tax attorney.
Note: I am not a tax specialist, nor an attorney. I'm a geek researcher/engineer.

For me, my registration and delivery date are the same. However, that's because of a lot of hustle by many people - especially my salesperson.
I "could have" picked up the car ~~1-7+ days after the car was registered. It depends on the dealership, and any arraignments/agreements.

For my car, for the ?dealership? to consider the car to be officially delivered, I had to drive the car off the lot (more specifically, the car had to taken off the dealership's lot), and the car had to remain off the dealership lot for at least one night.
My guess is that it's because of some State law(s), and some precedents concerning what constitutes an "official delivery" of a vehicle?


The purchase and sales date can be different than the registration date.
Toyota mails the paper "Certificate Of Origins" to the dealership, separately from the delivery of the actual vehicle.
The "Certificate Of Origin" for a specific vehicle may arrive at the dealership before, same day, or many days later(like it did for my car).

For many States, a "Certificate Of Origin" is required to register a new vehicle. Like in Mass.
For many States (but not all, e.g. Michigan), insurance is required to register a new vehicle. Like in Mass.
In many States, the insurance company will require a "Certificate Of Origin" for a new vehicle, before the insurance company will issue the official paperwork/forms for the DMV/RMV/what-ever. Like in Mass.

My car arrived on the dealership lot on Thursday 4/28/2022.
I paid and finalized the paperwork and sale on that date.
However, the Certificate Of Origin(from Toyota) didn't arrive by mail, at the dealership, until Monday afternoon 05/02/2022. That was also the last day of the Toyota $1,500 cash back. I doubt that it mattered in my case. Still, if I didn't have to, I didn't want to take any chances.
My awesome salesperson "made things happen", and I was able to pick up the car at 5pm that day.

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