Toyota is the third automaker, after Tesla and General Motors, to reach the 200,000 plug-in vehicle sales mark in the U.S., which determines eligibility for the U.S.-wide tax credit.
According to Bloomberg's calculation, Toyota passed that mark in June, and the manufacturer confirmed as much to the news agency. Full credits will continue to be credited until the end of the quarter (Sept. 30), after which they will decline. As Toyota further indicated, the now-following meltdown of the tax credit will increase costs for consumers and hinder the adoption of climate-friendly cars.
The 200,000-vehicle cap provision dates back to 2009, and when a manufacturer reaches that limit, the tax credit is cut by 50 percent (i.e., to $3,750) for vehicles sold in the next six months. For another six months, the tax credit is cut in half again, to $1,875, before automatically expiring one year after the cap is reached.