Toyota Joins Tesla, GM in Running Out of EV Tax Credits in U.S.



Photo: Toyota

Toyota has run out of a $7,500 tax credit available for buyers of plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) in the U.S. β€” reports Automotive News.

The Japanese automaker reported 3,876 plug-in sales for June, putting the company over the 200,000 credit-eligible sales every automaker is allowed in the U.S.

Toyota joins General Motors and EV market leader Tesla, both of which have already crossed that threshold.

Toyota, alongside rival automakers GM, Ford, and Stellantis urged Congress to remove the credit-eligible sales cap in a letter last month.Β In the letter, the automakers argued that the cap only serves to hinder EV adoption by shifting the burden of rising costs to the customer.

However, Congress is having trouble deciding which automakers should be eligible for an extension.

The window for Congress to extend the EV credits could be closing, especially if Republicans regain control of one or both houses of Congress next year.

If Congress does not increase the limit or remove it entirely, Toyota’s credits will gradually dry up once the U.S. Internal Revenue Service determines the cap has been reached. The credits will be halved twice over a 12-month period before running out entirely.

Earlier this year, U.S. President Joe Biden met with Tesla CEO Elon Musk and executives from other automakers to discuss the future of EVs in the country.

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