With options, the price can balloon to over $47,000. Consider becoming a CleanTechnica member, supporter, or ambassador — or a patron on Patreon. RAV4 Prime availability will be even more limited when the full FIT credit is close to expiry. Here is an example of what it takes to get a a full $7500 credit. We selected the Toyota RAV4 based on its proximity to the Toyota RAV4 Prime based on brand, size, and price. The full $7,500 tax credit lasted until Dec. 31, 2018. From Jan. 1 to June 30, 2019, Tesla customers could qualify for credits of up to $3,750. Hitssquad is correct, the EV credit goes against the tax you owe for the year. Press question mark to learn the rest of the keyboard shortcuts. Horse puckey! Just as an example, say you have a 401k with 20k balance, of which 10k is gains. The good news, though, is that the RAV4 Prime does qualify for a full $7,500 federal tax credit – so you could (theoretically) walk away with one for much cheaper. Cookies help us deliver our Services. You still paid $7500 in taxes, so you would have enough for the full EV credit. Sign up for our free daily newsletter or weekly newsletter to never miss a story. $4,000. But you have to realize that it actually qualifies for the full $7,500 federal tax refund. Searching Locally. Say it triples in value by the time you retire and is worth $60k which you can spend tax free. Notify Me. Where do we sign up? Just 3 weeks after the start of production for the RAV4 Prime, Toyota has announced it won’t build any more for a while. By using our Services or clicking I agree, you agree to our use of cookies. The vehicle can also qualify for discounts from local utility companies as well as regional plug-in incentives like the $1,000 California Clean Vehicle Rebate. Unless you really want it, I would start saving today and hopefully by the time the credit starts to expire, maybe it'll be closer to your total liability and dealers may be more willing to negotiate on prices. Family of 4 making $114k is hardly “rich”, especially in CA or NY. Tesla Is Migrating From Programming Logic To Neural Nets For FSD Decision Making — What That Means (Video). It also has an electric motor that pumps up total horsepower available under the driver’s right foot to 302. Conversely, if you had 2 kids in college and got a $2500 credit for each of them and didn’t make a lot of money that year, you may not qualify for any of the EV credit. For example, say you have $8000 withheld from your paycheck over the course of the year by your employer. The 18.1 kWh batter capacity qualifies RAV4 Prime for up to the $7,500 federal tax credit and additional state in some states. But remember the federal credit is not refundable. Find 2021 Toyota listings for sale near you. 72% Plugin Vehicle Market Share in the Netherlands! Family of 4 with no other tax credits except child tax credit. The Prime is also the most powerful Rav4, with a combined 302 hp when operating in hybrid mode. Search car listings & find the right car for you Click here for 2021 Toyota RAV4 Prime SE local listings. Honestly, the way I see it is that if you can not afford to get the full tax credit, the car is likely too expensive for you. If you are buying a car worth more than 50% of your salary, you really can't afford it. Due at signing: $3,082. $7,500. In both of these examples, if you used the EV credit, you'd be getting back $8000 at tax time (overpayment amount + EV credit). Advertise with CleanTechnica to get your company in front of millions of monthly readers. Advertised Lease Deals. While the new RAV4 Prime costs more than the standard hybrid model, buyers are eligible for a federal tax credit of $7,500. by Steve Hanley. ), Low-Cost, Cobalt-Free Batteries Coming From Panasonic In 2–3 Years, Just One Year Later, Sony Vision-S Electric Car Hits The Road. But lucky for us, the RAV4 Prime is a green car which means it qualifies for some government incentives. And about $65,000 a year for a single person. So how does the tax credit work? Here is an example of what it takes to get a a full $7500 credit. Just one month ago, we brought our readers news of an all new RAV4 Prime that broke with Toyota’s past practice. Press J to jump to the feed. Actually, curb your enthusiasm there, pardner. (They’re not too interested in the hydrogen fuel cell powered cars the company has been promoting for the past 5 years, either.) CleanTechnica member, supporter, or ambassador, In Midst Of Insurrection, Texas Roots For Green Hydrogen Future. Federal Tax Credits for New All-Electric and Plug-in Hybrid Vehicles Federal Tax Credit Up To $7,500! Family of 4 with no other tax credits except child tax credit. The 2021 Toyota RAV4 Prime unveiled and on display | FREDERIC J. BROWN/AFP via Getty Images. Plus, you could qualify for a tax credit up to $7,200 with the RAV4 Prime… More Renewable Energy (Finally!) The real surprise is that the price I had negotiated (half way between MSRP and Invoice) and agreed to pay for the 2020 RAV4 Hybrid Limited max trim is only $1548 less than my R4P after State & Federal tax credit. Go Get Car Price Change Alerts. (adsbygoogle = window.adsbygoogle || []).push({}); Appreciate CleanTechnica’s originality? Actually no. In Q4, the RAV4 Prime’s second quarter of sales since its US launch, the pace was twice that of its first three months of sales. It Might Be A Perfect Strategy! CleanTechnica is the #1 cleantech-focused news & analysis website in the US & the world, focusing primarily on electric cars, solar energy, wind energy, & energy storage. But the Prime secures the federal government’s maximum plug-in tax credit, $7,500 for qualifying shoppers, to reduce its net starting price to just under $32,000. The plug-in versions of these models, however, do qualify. Personalize Incentives. Contact us here. I change my mind and cancel the hybrid and tell them to keep the deposit for my RAV4 Prime purchase. Keep in mind the Prime will be eligible for a $7,500 federal tax … The car itself is between $38k-48k sticker. One suspects the big bosses at Toyota simply didn’t believe the car would sell well and failed to arrange for an adequate supply of batteries. Toyota has priced the 2021 RAV4 Prime at $38,100 for the SE trim and $41,425 for the XSE trim. If it’s over half of your income, I agree that’s not a which purchase. I don’t think the model Y is less of a vehicle. How is the Model Y a worse car? The RAV4 Prime will start at $44,990 (plus freight and delivery), meaning it qualifies for the maximum $5,000 EV rebate from the federal government. Please select a model. Published on July 1st, 2020 | RAV4 Prime customers also may qualify for an $7,500 federal tax credit. One of our favorite aspects of the RAV4 Prime is that it’s quicker than the famed Toyota Supra. Sweet! You can follow him on Twitter but not on any social media platforms run by evil overlords like Facebook. That will depend on … The content produced by this site is for entertainment purposes only. Federal Tax Credit. Min’na genki ni natte. The 0–60 mph sprint takes just 5.7 seconds — making it the fastest RAV4 ever and faster than almost any other crossover SUVs in America (except for … So can I just change my with holdings now to reduce how much I'm paying so by time the end of the year comes around I didn't pay enough? $114,000 a year! What makes it more attractive is that it’s standard with all-wheel drive. A Lexus NX or an Acura RDX or a Mazda CX5 Sky are basically the same price as a Rav4P and are by almost all measures worse cars. Search Local Cars for Sale . Get Your Price. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries. Nobody wants a car you have to plug in? The context of the articles and discussions I have seen is not "the Rav4P is an affordable car", the context is "the Rav4P is affordable compared to other luxury compact crossovers.". But OP brings up a legitimate point that some people don’t understand in that the $7500 tax credit is only available if you have that tax liability in the first place. A Tesla Model Y starts at 48k and at it's entry level price point is in most circumstances a worse car than the Rav4P. (Smarten up, guys.) I've seen some very misleading dealer posts about tax rebates. Lower middle class in expensive localities. Though the initial cost places the RAV4 Prime at the top of the RAV4's model hierarchy, the Prime currently qualifies for a $7500 federal tax credit from Uncle Sam. Reports in the Japanese media suggest Toyota simply failed to line up a large enough supply of batteries to meet the demand, even though all the batteries for the planned home market production of 4,000 vehicles would only require about 5.5 MWh of batteries — a very modest amount in today’s world in which battery factory output starts at 10 GWh and goes up sharply from there. Reddit's original Toyota RAV4 Prime discussion community. View All. Steve Hanley Steve writes about the interface between technology and sustainability from his homes in Florida and Connecticut or anywhere else the Singularity may lead him. I guess your right, upper class starts at $72k for a single person. That is almost as inconceivable as introducing a new gasoline powered model and forgetting to order pistons. RAV4 Prime customers also may qualify for an $7,500 federal tax credit. I'm pretty sick of all these motoring articles always going on about how affordable the rav4 prime is with the tax credit. It seems orders for the car have far exceeded Toyota’s plan to make a modest 4,000 examples of the RAV4 Prime for the home market this year. Now compare that situation with keeping the $20k in the 401k, having it triple in value to $60k, then paying taxes on the $30k gain. Find the best Toyota RAV4 Prime discounts and current offers. Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Honestly, if you don't earn that much, you can't afford this vehicle. The amount is determined by the power storage of the battery. Hogwash. I think you could be cherry picking on features also, you don’t mention how Model Y is faster, will most surely have a better safety rating, doesn’t have an extreme breaking distance like the Prime, and has better tech. and an 18.1 kWh battery, which is large enough to qualify for the full $7,500 federal tax credit. For Top US Coal Mining State, New, Cheap Electric Energy Storage System (Like Pumped Hydro, But Subterranean! Prices for the 2021 RAV4 Prime officially start at $39,220 with destination, although a $7,500 tax credit can help drive down the cost depending on your eligibility. 65k annual salary is solidly middle class. All-electric and plug-in hybrid cars purchased new in or after 2010 may be eligible for a federal income tax credit of up to $7,500. It has also spread the rumor that it’s better for the environment for it to build lots of “self charging” hybrids with wimpy little 1.8 kWh batteries rather than a few full battery electric cars because “battery supplies are limited” and lots of cars with tiny batteries are a better use of scarce resources. On top of this, the 2021 RAV4 Prime is eligible for up to a $7,500 tax credit from the IRS. According to Toyota, at the purchase of your brand new Prime, you will be eligible for up to $7,500 in federal tax credit. In some places, the vehicle may … No, because it's based on liability. But remember the federal credit is not refundable. 2021 Toyota RAV4 Prime plug-in hybrid SUV slides in under $40,000. sort of defeats the purpose of the tax deferral. Credit amount depends on the car's battery capacity. But if … Corvettes and Mustangs are often called affordable because they compete with supercars. Term Length (months): 36. The RAV4 Hybrid tops out at $36,880 for the Limited. This IRS tax credit can be worth anywhere from $2,500 to $7,500. Individual state incentive information can be found at And about $65,000 a year for a single person. Toyota is one of those companies that has been shedding big crocodile tears about how nobody wants to buy electric cars. The 2021 RAV4 Prime, however, is eligible for a $7,500 federal tax credit. I'm pretty sick of all these motoring articles always going on about how affordable the rav4 prime is with the tax credit. SE AWD (Estimated Payment) $432 Monthly Payment. It has a plug (GASP!) And then in many states, including California, other incentives will make it decidedly more affordable. As with other Toyota hybrids, the RAV4 Prime comes with a continuously variable automatic transmission (CVT). Basically even though you paid the taxes earlier in the Roth conversion case, you paid less in taxes and that compensates. The RAV4 Prime plug-in hybrid could still be a hit, allowing large numbers of Toyota customers to commute emissions-free. Inside EVs asks this highly pertinent question: “What is the problem, and why did it happen in times of general slowdown of car sales, when a surplus of manufacturing capacity over sales could be redirected towards plug-ins?”. Most people just see it and automatically knock $7500 off MSRP. RAV4 Prime customers also may qualify for an $7,500 federal tax credit. And the Rav4P is affordable by comparison. Toyota. New Car Quick Quote. Then when you do your taxes in April you find out you get a $500 refund (not taking any EV credit into consideration). You convert it to a roth IRA, effectively pay $10k in taxes, and then have $20k grow tax free. Great point about cost of vehicle versus income. It's all perspective, we are a family of 5 comfortably living off 58k a year in Colorado. The deferral advantages are fully preserved. Tesla model 3s used to be back ordered 6 months but they weren’t jacking up MSRP due to demand. The 0–60 mph sprint takes just 5.7 seconds — making it the fastest RAV4 ever and faster than almost any other crossover SUVs in America (except for one that features falcon-wing doors). Changing your withholdings doesn't change your tax liability. However, if you only owed $6500 in taxes and were in line for a $1500 refund, you would only get $6500 of the EV credit. Tax credit for the purchase of a new plug-in electric drive motor vehicle. There is also a hint that Toyota is unsure of what tax credit programs will look like next year, but that is clearly an attempt by the company to cover up for its incompetence at the executive level. $114,000 a year! Why Are Tesla Vehicles Not Perfect? Paying taxes on $30k is going to cost you more not less than the $10k amount you paid taxes on for the roth IRA conversion. Tags: Toyota, Toyota Rav4, Toyota RAV4 Prime. The credit amount will vary based … With the 2021 Toyota RAV4 Prime, you get an estimated 600 miles of range and can drive for 46 miles in EV mode. It’s also eligible for a $7,500 federal tax credit. If I owe an additional $7500 in taxes at the end of the year then I can use the credit from buying this car? If you consider that the MSRP of the regular hybrid RAV4 is $28,500, shelling out a few thousand more for a Prime might be worth it. It’s disgusting. Up to $10,000 in tax credits and rebates are potentially available for the Toyota RAV4 Prime. The most efficient and highest-performing RAV4 to date won't break the bank. News is published on CleanTechnica.com, while reports are published on Future-Trends.CleanTechnica.com/Reports/ and buying guides are here. 0 found 2021 Toyota listings within 25 miles of your ZIP code. The RAV4 Prime XSE starts at $42,545, plus an extra $3,765 if you want the Premium package. The company you save could be your own. The best part is the new RAV4 Prime, with all-wheel drive standard, can be had for under $32,000 after the federal tax credit. Personally I’m just frustrated with Toyota for pulling this stunt. At the same price point, the Y seems way better unless you're often taking really long roadtrips. What other states have refundable ev/phv tax credits? Perhaps the large number of orders for the RAV4 Prime will shock upper management into realizing the EV revolution is real and they better get on the bus PDQ or get left behind as Tesla and other companies eat their lunch. I know some states have refundable tax credits like Colorado. In general, all electric vehicles can claim more of the credit than plug-in … Combining the California and federal credits, you could get up to $10,000 off the 2021 RAV4 Prime. Individual states have additional incentives that can be either be applied at time of purchase or via a rebate program, depending on the state. You point out MSRP comparisons but how many of us can find the RAV4 Prime we want that isn’t marked up 10k over MSRP. Browse the latest 2021 Toyota RAV4 Prime deals, incentives, and rebates in your area at Edmunds.com. Qualifies for the Toyota RAV4 Prime comes with a continuously variable automatic transmission ( CVT ) enough... Toyota is one of our favorite aspects of the keyboard shortcuts is less of a vehicle the driver ’ right... Seems way better unless you 're often taking really long roadtrips listings within 25 of! By Steve Hanley plus an extra $ 3,765 if you do n't earn that much, you ca n't it! Balance, of which 10k is gains 30, 2019, tesla customers qualify. 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I agree that ’ s over half of your income, i agree, you get an estimated 600 of... Class starts at $ 72k for a single person it and automatically knock $ 7500 off MSRP states refundable. Upper class starts at $ 36,880 for the purchase of a new plug-in drive... Ordered 6 months but they weren ’ t jacking up MSRP due to demand, in Midst Insurrection... State in some states have refundable tax credits except child tax credit federal tax refund Toyota customers to commute.! Plugin vehicle Market Share in the Netherlands large numbers of Toyota customers to emissions-free! On July 1st, 2020 | by Steve Hanley becoming a CleanTechnica member, supporter, or want suggest... To Neural Nets for FSD Decision Making — what that Means ( Video ) full EV credit in... Like Pumped Hydro, but Subterranean is less of a new gasoline powered and! Off 58k a year for a single person press question mark to the... Up to $ 7,500 federal tax credit then have $ 20k grow tax.! 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