Electric-vehicle tax credits are coming to an end for new Toyota buyers – EQ Mag Pro
Toyota is expecting to reach the 200,000-vehicle cap on the US EV Tax credits before June end. Toyota has reached the US electric vehicle tax credits cap by selling mostly plug-in gas-electric hybrid vehicles. As per Toyota’s head of North American sales, Bob Carter, once they reach the vehicle cap, the credits will be phased out, reaching zero over the next year, just like Tesla and General Motors.
The lack of credits will make it challenging for automakers who are transitioning from petroleum-powered vehicles to battery-powered ones in order to cut emissions, meet regulatory fuel-economy standards, and combat climate change.
Nissan is around 30,000 vehicles short of meeting the threshold of US electric vehicle tax credits, and other automakers will follow suit as they introduce more electric vehicles in the market.
By 2030, Toyota plans to sell 30 fully electric vehicles under the Lexus and Toyota brands. Without the credits, Tesla, the world’s leading seller of electric vehicles, and GM are already at a price disadvantage over other automakers. And with Toyota’s US electric vehicle tax credits reaching the cap, soon they will also be added to the list of high-priced EV makers.
Though additional electric vehicle tax credits are included in President Biden’s Build Back Better spending bill, it is currently stalled in Congress. In order to boost EV sales in the US market, the Build Back Better bill would provide EV customers with a $7,500 tax credit that would last until 2026. The following year, however, only electric vehicles manufactured in the United States would be eligible for the credit.
If the car is manufactured in the United States under a union-negotiated collective bargaining agreement, the base credit increases by $4,500. This means that only general Motors, Ford, and Stellantis vehicles would qualify for the tax credits. Toyota lobbied and fought against the additional credit only for union plants, claiming it was unfair to nonunion workers. Carter also said that they are not anti-EV credits, and it should be a level playing field, and Congress really needs to resolve the ..
Democrats who support the United Auto Workers’ EV tax credits argue that protecting union jobs is good for the economy and communities as unions help to develop the middle class in a country. General Motors CEO Mary Barra also said that automakers who have launched electric vehicles in the country should not be put in a disadvantageous position.
Source: PTI
