[iTim314]

I too considered the Prime for a short time. It has been reported that in the 2nd quarter(April/May/June) of this year Toyota will enter the phase-out period for the Federal Tax Credit for plug-in vehicles. That will been the drop from the full $7500 amount to lesser amounts to $0 at some point. Due to the phase-out and the lack of available Primes here in Pennsylvania, I too decided to concentrate on the Hybrid models instead.

Close, but not quite.

After Toyota sells its 200,000th qualifying vehicle, the full credit will remain for the two following quarters. The next two quarters the credit will be reduced to 50% the original amount. The next two quarters the credit will be reduced to 25% the original amount. After that, the credit expires.

The earliest that the Toyota RAV4 Prime credit will be reduced is 4Q2022, and that amount will be $3,750.

This is an old chart that's as of 3Q2019, but it does a good job to explain how the phase out works. Observe how Tesla and GM credits were phased out.

 

[iTim314]

so if i get a prime in April, I'd be able to write off 7500$ even though the tax credit would end maybe in december? I just don't understand tax write offs

If you get the car in April of this year, you will claim the tax credit on your 2022 tax return that you’ll file in 2023.