July 29, 2022 12:51 am

Tax Credit for Toyota Electric Powered Vehicles Curtailed

Plug-in electric powered vehicles manufactured by Toyota reached the 200,000 manufacturing cap in June of this year. As a result, the maximum $7,500 credit for the purchase of a Toyota plug-in electric powered vehicle is reduced to $3,750 from October 1, 2022, to March 31, 2023. Such Toyota vehicles purchased from April 1, 2023, through September 30, 2023, will have a maximum credit of $1,875. No credit will be available for purposes starting October 1, 2023, and beyond. Use Form 8936 to figure your credit.

Tax Glossary

Simplified employee plan (SEP)

IRA-type plan set up by an employer, rather than the employee. Salary-reduction contributions may be allowed to plans of small employers set up before 1997.

More terms