What Should Toyota Buyers in Houston Know About EV Tax Credits?
Federal incentives for electric vehicles are changing. The Clean Vehicle Credit, which can provide up to $7,500 in tax savings, is scheduled to end on September 30, 2025, unless extended. A separate credit for home EV charger installation will expire on June 30, 2026. If you're planning to purchase a Toyota EV or plug-in hybrid, it’s important to act while the credits are still available.
How Much Could You Qualify for with the Clean Vehicle Credit?
The credit offers a total of $7,500, divided as follows:
- $3,750 if the EV meets battery component requirements
- $3,750 if it meets critical mineral sourcing standards
Some vehicles may only qualify for a partial credit. Others may not qualify at all, depending on how they’re built and where the materials are sourced.
What Are the Eligibility Requirements for Toyota EVs?
To qualify for the Clean Vehicle Credit, a Toyota EV must:
- Be new at the time of purchase
- Include a battery capacity of at least 7 kWh
- Be assembled in North America
- Be made by a qualified manufacturer
- Fall under the $80,000 MSRP limit for trucks, SUVs, and vans, or $55,000 for other vehicles
- Have the sale properly reported to the IRS by the dealership
- Be purchased by a buyer who meets federal income limits
When Will These EV Incentives Expire?
The Clean Vehicle Credit is set to end on September 30, 2025, and the charger installation credit will end on June 30, 2026. There’s no guarantee that either will be extended, so timing your purchase is key.
