Toyota announced that as of Friday, the company has used up their allotment of US tax credits for hybrid and EVs.
The $7,500 federal tax credit can be used for full or partially electric cars but only up to 200,000 per company.
The thinking was that once companies reached 200,000 vehicles, the economy of scale would lower EV prices.
Toyota‘s cumulative sales have now surpassed this threshold.
This means that those looking to buy a Toyota in the US will no longer receive the $7,500 tax credit to help with the cost of the vehicle shortly.
Bloomberg compiled the sales data, and Toyota confirmed the company surpassed the threshold.
Toyota is the third automaker to reach the limit for the tax credit. In addition to Toyota, Ford and Tesla have surpassed the threshold.
Without changes in Congress to the tax credit, Toyota will gradually see its credits reduced over one year once the Internal Revenue Service confirms the cap is hit.
Toyota along with other automakers are lobbying Congress for an extension of the tax credit.
The Biden administration did propose an additional $4,500 in credits to unionized automakers.
However, Toyota and Tesla oppose the proposal by the Biden administration.
Instead, they want a broader tax credit without the union restriction.
While Ford, General Motors and Stellantis support the Biden administration’s proposal.