Does anyone know when the IRS 30D phase-out will happen (200,000 plug-ins sold by Toyota)? IT was expected to happen in early 2022, but the chip shortage has delayed it. With Manchin killing the Democrat green initiatives, I think the days of the federal tax credit are numbered and it could happen sometime in 2022. I am then worried if I trade in my car now, I will be stuck with a color choice I don't like for many years.
Here is some data. Q2 2020 cumulative: 127,593 Q3 2020: ~ 4,962 Q4 2020: ~ 7,000 (estimated) Q1 2021: 9,791 Q2 2021: 18,738 Q3 2021: 13,844 Q3 2021 cumulative: ~ 181,928 So, if there were no chip shortage, IRS 30D would have started phasing out on October 1, 2021 (after Q3 2021) for Toyota. It will now start on April 1, 2022 (after Q1 2022). This will what happen if you buy a Prius Prime on or after April 1, 2022 (after Q1 2022): The new qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit ($2,251 for Prius Prime) if acquired in the first two quarters of the phase-out period (April 1, 2022–September 30, 2022) and 25 percent of the credit ($1,126 for Prius Prime) if acquired in the third or fourth quarter of the phase-out period (October 1, 2022–March 31, 2023). Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period (on or after April 1, 2023). The new EV bill that was killed by Manchin did not have a credit for plug-ins with over 2.5-gallon gasoline tanks. Therefore, if I trade in my 2021 Prius Prime Limited Blue Magnetism, I will be stuck with the Titanium Glow that I don't like for many years.
Even if Manchin hadn't killed the bill, I see that there was a 2.5-gallon gasoline-tank limit on the plug-in hybrids in the new bill. Therefore, Manchin or no Manchin, the Prius Prime tax credit is starting to phase out after March 31, 2022. If the chip shortage really halts the production, the full $4,502 could last until June 30, 2022.
Aha, that means for the year 2021 tax return, you have less than10 days left. And the car has to be in service by the end of the year to qualify for this year tax return, meaning you have to deal with the one on a lot, that's if you can find one. Good luck.
I probably won't do it because I feel like if I buy a color that I don't like, it will be cursed. I am getting a lot less bullied with the Blue Magnetism than I was with the Classic Silver Metallic, and the Titanium Glow is similar to that. Besides, there is no more tax credit after this one, and I will be stuck with a color that I don't like for many years. I would certainly do it if they had a Limited Blue Magnetism, but they virtually never had one. I should have ordered one months ago. Also, the tax credit is not really saving you money if you trade in, but it is letting your borrow money at low interest, meaning, I am not making real money by the trade-in but obtaining some useful cash, which could be invested in a good index ETF. When it is gone, you will then actually lose money around $6,000 when you trade in.
I agree. I am now just waiting to find out what law changes on the next year's incentives. I already purchased my current 2021 PP this year. I will not have a large enough tax liability to use another PP purchase with a full $4500 tax credit. Comes the year 2022, if the incentive on PP is gone, then I will not buy another one, but if new incentives on other BEV is a good deal, I will trade in my PP to switch to full Electric next year. If no more PHEV incentives next year, then I guess, my plan to switch our other current car, Pathfinder Hybrid, to either RAV4 PRIME or Pacifica Plug-in is scrapped.
Many Northeast states don't have generous plug in incentives like California. So Toyota put their own incentives in place for the NE to compensate for that. GM gave the Volt incentives when it lost its government ones. Toyota will likely do the same.
No, the only California state incentive remaining on the Prius Prime right now is a meek $450.05. Eligible Electric Cars | California Clean Fuel Reward
Hmm. House passes BBB Act mentions nothing about 2.5 gal requirement. Text - H.R.5376 - 117th Congress (2021-2022): Build Back Better Act | Congress.gov | Library of Congress
You typically lose about $1,000 in a year if you trade in with the tax credit. Without it, it would be like $6,000.
There was a proposal: "...a base amount of $4,000 plus an additional $3,500 for vehicles placed into service before January 1, 2027 with battery capacity no less than 40 kilowatt hours and a gasoline tank capacity not greater than 2.5 gallons, and for vehicles with battery capacity of no less than 50 kilowatt hours thereafter."
The bill's text at that link is the initial submission. Follow the all actions link, and you'll find the current bill's text with the revisions, including the one that increased the minimum battery pack size, and added the gas tank limit. IIRC, the gas tank limit would only disqualify the Prius Prime from an additional chunk of tax credit. The 10kWH pack minimum is what kicked it out. Am I reading Build Back Better correctly? | PriusChat
