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Does the Toyota bZ4X qualify for the tax credit?

Toyota bZ4X and Federal EV Tax Credit
The 2023 Toyota bZ4X, being Toyota’s first fully electric vehicle, is subject to the federal EV tax credit. However, due to Toyota’s success in selling plug-in hybrid vehicles, the bZ4X is on the cusp of losing its full federal EV tax credit. It’s expected that Toyota will hit the 200,000-unit cap by the end of the second quarter, which means the bZ4X will face a phaseout of the credit at three intervals until it can no longer offer it at all by 2023 .
The bZ4X is not currently listed on the Federal Tax Credit page of FuelEconomy.gov, but based on the qualifications for the credit, the bZ4X would get the full $7,500 before the phaseout begins. However, it’s important to note that the bZ4X is not produced in North America, and due to the Inflation Reduction Act, the vehicle and battery need to be assembled in North America to qualify for the federal tax credit. As a result, the bZ4X is not eligible for the EV tax credit .
As of now, the bZ4X has already hit its 200,000th sale, which means that if you order a 2023 Toyota bZ4X now, you’ll get only $3,750 back as part of the federal EV tax credit.
In summary, the 2023 Toyota bZ4X is facing a phaseout of the federal EV tax credit due to Toyota’s success in selling plug-in hybrid vehicles, and it’s important to consider the eligibility criteria and the current status of the tax credit when purchasing this vehicle.

Will any EV qualify for tax credit?

No more waiting for tax season. To qualify, the EV must be manufactured in North America and have an MSRP below $80,000 for an SUV and $55,000 for a sedan, wagon, or hatchback. To qualify for the first $3,750, some of the EV’s battery components must be produced or assembled in North America.

Is there a federal tax credit for Toyota bZ4X?

A vehicle must be assembled in North America, including Canada and Mexico, to qualify for any tax credit. This eliminates credits for vehicles assembled elsewhere, including the BMW i4, Hyundai Ioniq 5, Kia EV6, and Toyota bZ4X. (This requirement also may not apply to some leased vehicles.)

How long is the battery life on a Toyota bZ4X?

Your Toyota bZ4X battery will typically last between 3 to 5 years, but that can vary heavily depending on type of battery, weather conditions battery size, and driving habits. Even still, just because your battery isn’t entirely dead, doesn’t mean it’s operating accurately.

How much does it cost to replace the battery in a Toyota bZ4X?

How much to replace the battery in my Toyota? Depending on power, size, and quality, prices for a replacement car battery range from about $45 to $250. Your local dealership, auto parts store or automotive service center can check your current battery or hook you up with a new car battery.

How much is insurance for a Toyota bZ4X?

The average cost of full coverage insurance for a 2023 Toyota bZ4X is $201 per month. The bZ4X is the company’s all-electric SUV, which is similar in size to the RAV4. The company only started selling it in mid-2020. State Farm is the cheapest option to cover your bZ4X, with an average rate of $106 per month.

Which EV gets federal tax credit?

Which EVs and PHEVs Are Eligible for a Federal Tax Credit?

Model Year/Vehicle Credit Available Retail Price Cap
2024 Cadillac Lyriq EV $7,500 $80,000
2024 Chevrolet Blazer EV $7,500 $80,000
2022-23 Chevrolet Bolt EV $7,500 $55,000
2022-23 Chevrolet Bolt EUV EV $7,500 $55,000

What is the income limit for the $7500 tax credit?

Income cap for EV tax credit

Filing status Income
Single $150,000
Head of household $225,000
Married, filing jointly $300,000
Married, filing separately $150,000

Dec 25, 2023

How do you qualify for the $7500 EV tax credit?

To qualify, a vehicle must:

  1. Have a battery capacity of at least 7 kilowatt hours.
  2. Have a gross vehicle weight rating of less than 14,000 pounds.
  3. Be made by a qualified manufacturer.
  4. Undergo final assembly in North America.
  5. Meet critical mineral and battery component requirements (as of April 18, 2023).

How does the $7,500 tax credit work?

If you’re eligible for $7,500, the dealer credits you for that money as though you’d brought it in as cash. Then the dealer submits documentation to the IRS, and the IRS pays back the dealer that $7,500 — effectively meaning the tax credit is being handled through the dealership.

Does bZ4X get rebate?

Up to $1,700 in tax credits and rebates are potentially available for the Toyota bZ4X.

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