Is the Toyota bZ4X Losing Its Tax Credit Eligibility?
Toyota is suffering from success. The Japanese automaker has sold so many plug-in hybrid and electric vehicles that it’s running out of tax credits to give consumers. Is the Toyota bZ4X electric SUV losing its tax inventive eligibility?
Toyota EV fans should strike while the iron is hot
Sometimes opportunity comes knockin’, and sometimes you watch it fade before your very eyes. Toyota bZ4X fans, now is the time to get the most out of federal electric vehicle tax incentives.
The federal government has given automakers like Toyota 200,000 tax credits to give to consumers that purchase eligible models. Why? The government is incentivizing the purchase of vehicles that produce less carbon because it is working to reduce carbon emissions in the United States.
Carbon emissions can cause health issues as well as environmental issues. Companies like Tesla exist to offer consumers alternative options to typical gas-powered internal combustion engine vehicles. One happy byproduct of the purchase of an electric vehicle is a reduced cost of ownership, as EVs are cheaper to refuel. They can be more expensive to produce, so tax credits help automakers and consumers meet in the middle.
The problem with federal electric vehicle tax credits is that they are limited. This means that consumers can potentially miss the chance to claim the full $7,500 tax credit if they purchase an EV from an automaker that has exceeded its 200,000 tax credit limit. According to InsideEVs, Toyota has already used 190,000 of its tax credits. This isn’t great news for consumers patiently waiting on the bZ4X to release.
Is the Toyota bZ4X eligible for tax credits?
The Toyota bZ4X’s tax credit eligibility is entirely dependent on how many plug-in hybrid and EVs Toyota sells. The more PHEVs and EVs sold, the less likely it is for consumers 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 won’t completely revoke an automaker’s tax credit eligibility after 200,000 credits are used. The incentive is gradually phased out over the course of 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 are looking to claim a $7,500 tax credit on the Toyota bZ4X. The Japanese automaker could retain its federal tax credit incentive for a year, or more, depending on sales.
Is the 2023 Toyota bZ4X a good deal?
Toyota has yet to release official pricing for the 2023 Toyota bZ4X. Car and Driver estimates that the electric SUV will cost around $37,000. Kelley Blue Book estimates a $36K starting price. Either way, the electric SUV could be an incredible deal with the help of tax incentives.
The bZ4X is expected to get decent range (around 250 miles). Its battery has the potential to last for decades. The Toyota bZ4X is set to be one of the most impactful electric SUV models released to date.