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

Not technically true. If you have a signed contract prior to Biden signing in the new law you may be eligible for tax credit depending on when you get delivery (4500 prior to Oct 1, 2250 after_

 

Most deposits are too small or not nonrefundable to benefit from this. Moreover, Prius and Prius Prime seem to be no longer in production.

 

I.e., what that IRS page says:

"Transition Rule for Vehicles Purchased before August 16, 2022

If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022 (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022. ..."

 

I am shocked that they took away promised benefits before end of 2022, normally should allow some time for transition.
I was also mis-understanding the made-in-America rule, I thought that was delayed until 2024.

Interesting list of qualified vehicles...had not been aware of Ford Escape PHEV


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In most cases, anew law wouldn't take effect until the new year, and most of this one does wait until then. The final assembly in North America is the part that goes in effect immediately. Besides that, the credit for 2022 deliveries follows the old law in terms of credit amounts. If the rescinding of limit per manufacturer doesn't take effect until 2023, then GM and Tesla still see no benefit this year.

There are two "made in America" requirements in the law. The final assembly that goes into effect now, and a percent content of the battery and car that is used to determine if the car qualifies for either $3750 portion. The latter is what goes into effect later, and the percentage amount increases with time.

The Escape PHEV came out around the time of the Rav4 Prime; maybe before. The roll out was delayed over battery issues in the beginning.

 

A transition time would be normal, but the legislative sausage making was different this time. Perhaps this was needed to get Manchin's or Sinema's vote?

 

Normally this type of activity is considered illegal

Changing IRS nonsense midstream usually drives an inability to enforce

 

"Many of those new conditions were added to win over Sen. Joe Manchin of West Virginia, who has expressed reservations about offering subsidies for electric vehicle models that are so popular they have waiting lists stretching out for months."

Why buying an electric car just became more complicated | The Seattle Times

 

@Trollbait @Gohkan is there evidence that Prius and Prius Prime are not being manufactured?
I had not heard that one either.

 

They are actually still in production. The LA–OC area just got 20+ Prius Primes today.

 

Just in time to miss out on the federal tax credit. Maybe the dealers will take $4502 off. Not.

 

I'm thinking the 500 toyota incentive may go up this fall as orders start getting cancelled (assuming all the folks who put down deposits and didn't sign contracts decide to back out)

 

It is unlikely for the Toyota factory rebates to increase, as the supply-chain problems are expected to last for another two years or so. However, Toyota has also figured out that they can actually make even more profits by selling less cars and eliminating the rebates and incentives. I think this is the fundamental driver of inflation. Businesses have figured out that they can make more money by reducing the supply and increasing the prices. Perhaps the good old days of ample supply of products is gone.

 

Besides Toyota, what other popular Plug-ins have just lost the tax credits?
I am thinking mainly Hyundai IONIQ

 

Here is the full list of what qualifies and what doesn't in glory detail:

EVs qualifying for new electric tax credit—Consumer Reports

 

I see that..but I am looking for the list of cars no longer qualified, not made in America.
I am looking for the other list: the cars that people were about to buy but just lost the tax credits.

 

^ Did you read to the bottom of the article?

 

Here is the list of what was qualified EV and PHEV before IRA. So, any cars on this list that is not listed on the current list linked above are no longer eligible, unless it was signed to be purchased before 8/16.
https://www.fueleconomy.gov/feg/taxevb.shtml

 

OK got it thank you!

 

The article has the lists you wanted. Note that all GM and Tesla plug-in vehicles were disqualified before the Inflation-Reduction Act because of the 200,000-vehicle cap for those OEMs having been reached.

Which Cars Might Qualify for the New EV Tax Credit?


Depending on where their batteries are manufactured, only cars with a final assembly point in North America will qualify for the tax incentive. In addition, there are new caps on how much vehicles can cost: For SUVs, pickup trucks, and vans, the threshold is $80,000. For sedans, hatchbacks, wagons, and other vehicles, the credit cuts off at $55,000. And vehicles will still have to meet both of those aforementioned battery manufacturing targets to qualify for the full tax credit.

Although we don’t know which vehicles will meet the battery portion of the tax credit, these are the current and upcoming models made in North America with versions that cost less than the bill requires:

• Cadillac Lyriq (only if it is classified as an SUV)
• Chevrolet Blazer EV
• Chevrolet Bolt
• Chevrolet Bolt EUV
• Chevrolet Silverado EV (with certain options and trim levels)
• Ford F-150 Lightning (with certain options and trim levels)
• Ford Mustang Mach-E
• Nissan Leaf
• Rivian R1S (with certain options and trim levels)
• Rivian R1T (with certain options and trim levels)
• Tesla Cybertruck (with certain options and trim levels)
• Tesla Model 3 (with certain options and trim levels)
• Tesla Model Y (only if it is classified as an SUV, and only with certain options and trim levels)
• Volkswagen ID.4 (only 2023+ models made in Tennessee)

Of those vehicles, it remains to be seen which ones would meet the battery requirements. For example, the Chevrolet Bolt and its batteries are assembled in Michigan, so its qualification for a tax credit would be determined by which countries those battery minerals are sourced from. Other vehicles have cells that might be manufactured at multiple factories in different countries. “Once you have cells coming from two different places, how do you figure out the qualification?" asked Smith.

Because their prices are above $55,000, the Cadillac Lyriq and Tesla Model Y would qualify only if they are classified as SUVs and not station wagons, and if buyers don’t choose options that bring the price over $80,000.

For some vehicles, the credit might only be partial. “I’m thinking that maybe the Tesla Model 3 and Y would qualify for half of the $7,500 credit under the battery components requirement but not likely the minerals requirement,” says Loren McDonald of EV Adoption, an electric vehicle research, analysis, and marketing firm.

Which Cars Definitely Won’t Qualify for the New EV Tax Credit?


These current and upcoming EVs (and two fuel-cell vehicles) are not made in North America and therefore won’t qualify for a tax credit, although that might change in the future if their assembly location changes.

• Audi E-Tron
• Fisker Ocean
• Genesis GV60
• Hyundai Ioniq 5
• Hyundai Ioniq 6
• Hyundai Kona Electric
• Hyundai Nexo
• Jaguar I-Pace
• Kia EV6
• Kia Niro Electric
• Lexus RZ
• Mazda MX-30
• Mercedes-Benz EQB
• Nissan Ariya
• Polestar 2
• Subaru Solterra
• Toyota bZ4x
• Toyota Mirai
• Volkswagen ID.4 (only certain models)
• Volvo C40

In addition, regardless of where they are assembled, these vehicles are too expensive and will not qualify for any tax credit:

• Audi E-Tron GT
• BMW i4
• BMW i7
• BMW iX
• Chevrolet Silverado EV (with certain options and trim levels)
• Ford F-150 Lightning (with certain options and trim levels)
• Genesis G80 Electric
• GMC Hummer EV
• Lucid Air
• Mercedes-Benz EQE
• Mercedes-Benz EQS
• Porsche Taycan
• Rivian R1T (with certain options and trim levels)
• Tesla Cybertruck (with certain options and trim levels)
• Tesla Model S
• Tesla Model X