Toyota runs out of federal EV tax credits, pushing prices higher

Toyota is the latest car company to run out of tax credits in the US and it will lose access to the subsidy. In June, the company exceeded the sales threshold for EV and hybrid.

Toyota and other companies have been lobbying for the cap on EV tax credits to be removed. The loss of the credit will make it more expensive for consumers to buy an EV, which will slow the transition away from cars with engines.

The Biden administration wants to give extra credits to unionized carmakers. The parent companies of Chrysler and Ford have unionized plants. Extra credits for cars made in the US were included in the bill that passed through the House.

Toyota's tax credits will be phased out over the course of one year. The subsidy will be worth less before it expires. Toyota can take advantage of incentives at the state level.