Toyota Crosses US EV Credit Limit
July 5, 2022—Toyota on Friday said its vehicles are no longer eligible for the U.S. EV tax credit.
According to a report from Bloomberg, the automaker sold 3,876 EVs and plug-in hybrids in June, pushing its total electric sales over 200,000. The current $7,500 tax credit offered by the U.S. government to automakers only applies to a company's first 200,000 electric sales.
Toyota's vehicles will no longer receive any extra credit after one full year.
Toyota joins General Motors and Tesla as the third automaker to hit that limit. Toyota and other automakers have lobbied for an extension of the credits, but the Japanese automaker has also opposed a suggestion by President Biden to offer an additional $4,500 in credits to unionized automakers such as GM, Ford and Stellantis.