Toyota suffers from success. The Japanese automaker has sold so many hybrid and plug-in electric vehicles that it’s running out of tax credits to give consumers. Does the Toyota bZ4X electric SUV lose its inventive tax eligibility?
Toyota EV fans should strike while the iron is hot
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Sometimes opportunity presents itself, and sometimes you watch it fade before your eyes. Toyota bZ4X fans, now is the time to make the most of the federal electric vehicle tax incentives.
The federal government has given automakers like Toyota 200,000 tax credits to give to consumers who buy qualifying models. Why? The government encourages the purchase of vehicles that produce less carbon as it strives to reduce carbon emissions in the United States.
Carbon emissions can cause health problems as well as environmental problems. Companies like Tesla exist to provide consumers with alternative options to typical gasoline-powered internal combustion engine vehicles. A happy by-product of buying an electric vehicle is a lower cost of ownership because electric vehicles cost less to refuel. They can be more expensive to produce, so tax credits help automakers and consumers meet each other.
The problem with federal tax credits for electric vehicles is that they are limited. This means consumers can potentially miss out on the chance to claim the full $7,500 tax credit if they purchase an electric vehicle from an automaker that has exceeded its $200,000 tax credit limit. InsideEVs, Toyota has already used 190,000 of its tax credits. This is not good news for consumers who are patiently waiting for the release of the bZ4X.
Is the Toyota bZ4X eligible for tax credits?
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Eligibility for the Toyota bZ4X tax credit depends entirely on the number of plug-in hybrids and electric vehicles sold by Toyota. The more PHEVs and EVs sold, the less likely consumers are to claim the full bZ4X incentive if they don’t get the electric SUV soon.
There is a silver lining to this dark cloud of bad news. The government will not completely revoke an automaker’s tax credit eligibility after 200,000 credits have been used. The incentive is being phased out over the months. Some consumers will receive 50% of the initial incentive. Others will receive 25% of the incentive months later.
So, there’s still hope for you if you’re looking to claim a $7,500 Toyota bZ4X tax credit. The Japanese automaker could keep its federal tax credit incentive for a year or more, depending on sales.
Is the 2023 Toyota bZ4X a bargain?
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Toyota has yet to release official pricing for the 2023 Toyota bZ4X. Car and Driver estimates the electric SUV will cost around $37,000. Kelley Blue Book estimates a starting price of $36,000. Either way, the electric SUV could be an amazing deal with the help of tax incentives.
The bZ4X should have a decent range (around 250 miles). Its battery has the potential to last for decades. The Toyota bZ4X is expected to be one of the most impactful electric SUV models released to date.
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