Will I still receive the full 7500 (which the car qualifies for) when I do my taxes at the end of the year, since I bought it in the beginning of 2022? Sorry this bill is just quite confusing to me THANKS to anyone who explains.
As far as I know, yes you would qualify for the $7,500 tax credit since you bought before the bill was signed by the President, providing of course you owe enough taxes to use it all up.,
https://www.caranddriver.com/news/a39936847/toyota-federal-ev-tax-credits/ Toyota hit their 200,000 unit cap in July. Partial tax credit *may* apply to your purchase.
They get an additional quarter after hitting the cap. So the full amount still applies up until the President signed the bill.
The time period might be extended but *I'm pretty sure* the rebate will be less than $7500 - a lot less. "So, what happens from here? Well, the federal tax credit isn't officially gone quite yet. Once the IRS confirms the cap has been reached, the automaker will have four quarters remaining for buyers to pick up a reduced tax credit. Buyers of electric or plug-in-hybrid Toyotas will have two quarters to take advantage of a $3,750 tax credit, after which it will again be halved to $1,875 for another two quarters before disappearing completely." https://www.cnet.com/roadshow/news/toyota-reaches-ev-tax-credit-cap/
"The beginning of the phase-out starts on October 1, 2022 and customers who purchase a qualifying electrically-powered vehicle on or before September 30, 2022 will be eligible for the full incentive of up to $7,500." https://www.motortrend.com/news/toyota-electrified-vehicles-phase-out-federal-ev-tax-credit/ Toyota hit the 200,000 limit in the second quarter of 2022. The phase-out begins after the next quarter (3rd quarter) ends under the old rules. So under the old rules, October 1, 2022 the tax credit is reduced to $3,750. "The qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”)." https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d
