2022 Tax credits

[goldbrick]

Here's a shameless copy and paste of an interesting post from a Rav4 forum. https://www.rav4world.com/threads/rav4-prime-tax-credit-may-go-down-in-2022.316617/

The 2022 federal budget regarding EV tax credits has not yet been finalized (though it's moving fast now), but if the current version goes through then I am seeing that the tax credit for a Rav4 Prime may go down from the current $7,500 if purchased in 2021 to $4,000 if purchased in 2022. If so, you might want to get one this year ( a new 2021 or 2022 model), assuming you can find one.

Here is the text of the House bill HR 5376 as of 10-28-2021 (EV credits begin on page 1240):

HR 5376 as of 10-28-2021

Here are the tax credits I see:

$4,000 for any plug-in vehicle (PHEV or full electric) within certain limits.
$3,500 more for a 40 kWhr or greater battery and a gas tank no greater than 2.5 gallons (I guess this eliminates most current PHEVs including the Rav4 Prime).
$4,500 more for domestic assembly with a collective bargaining agreement (Union made).
$500 more for "domestic content" (US made battery).

Credits limited to a maximum $69K MSRP for an SUV, $55K for a sedan, and $74K for a truck.

Income limits of $800K for filing joint and $400K for single.

The new credits would begin Jan 1, 2022 if the bill passes in its current form.

I only see that the Rav4 Prime qualifies for the first $4000 tax credit. While the R4P might be manufactured in the US some day, I don't think Toyota currently has a collective bargaining agreement. I also don't believe the battery is currently US made.

I might have missed something (lots of legal stuff in there) so feel free to add corrections. As of now, I think the GM full EVs (Bolt, Bolt EUV, Lyriq) would qualify for all credits ($12,500) but I'm not aware of any other manufacturers that meet all requirements. I think the Mach-E is made in Mexico. A Tesla should qualify for up to $8,000 after several years of no credit.

 

[jjeff]

The 2022 federal budget regarding EV tax credits has not yet been finalized (though it's moving fast now), but if the current version goes through then I am seeing that the tax credit for a Rav4 Prime may go down from the current $7,500 if purchased in 2021 to $4,000 if purchased in 2022. If so, you might want to get one this year ( a new 2021 or 2022 model), assuming you can find one.

And there's the rub, find one
We've been on the list for over a year and other than a false alarm about a month ago when we were told "they were about to start building ours" only to find out it was nothing like what we ordered, wrong color, wrong packages, wrong model! we still have no idea when we might expect it. To be fair, when we ordered it we were told it could be 2 years or more, so we can't really complain but it would sure be a bummer if by the time it came it, the $7500 EV credit had gone down or worse yet eliminated
It kind of ticks me off when the media talk about EVs like they are here or what a wide variety we have to choose from when in actuality we really only have one choice for the most popular vehicle design in N. America and it's been that way for many years! but I guess it sounds good for people who aren't really interested in EVs or those who don't bother actually trying to order one only to find out the vehicle they read about is actually years off or in the case of startups the media talk about, will ever come to fruition......in the meantime countries that really care about supporting EVs have a multitude of choices, mostly available now.
Of course it's been that way for years with ICE vehicles, we get a small selection of the smaller more efficient vehicles while other smaller countries in Europe, Asia, etc. have a much larger choice of available vehicles.