TORONTO, ONTARIO, CANADA - 2020/06/12: A Toyota sign on car dealer during the daytime. The sky is blue with some clouds. Toyota customers soon won't be able to get U.S. federal tax credits for buying electric or hybrid vehicles.
The lack of credits is problematic for automakers shifting from petroleum-powered vehicles to batteries in the effort to reduce emissions, meet government fuel-economy standards and fight climate change. Nissan is about 30,000 vehicles away from reaching the cap, and others will follow as more EVs are introduced.Tesla, the top seller of electric vehicles in the world, and GM already are at a price disadvantage to other automakers without the credits, and Toyota soon will be.
The Build Back Better bill would give EV buyers a $7,500 tax credit through 2026 to charge up sales. But the following year, only electric vehicles made in the U.S. would qualify for the credit. And the base credit rises by $4,500 if the vehicle is made at a U.S. plant that runs under a union-negotiated collective bargaining agreement. Only GM, Ford and Stellantis vehicles would qualify.