2021 RAV4 Prime XSE in Magnetic Gray
Close, but not quite.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.
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.