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. 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. The company you save could be your own. Go Get Car Price Change Alerts. The 2021 RAV4 Prime, however, is eligible for a $7,500 federal tax credit. 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?”. The 2021 Toyota RAV4 Prime unveiled and on display | FREDERIC J. BROWN/AFP via Getty Images. 72% Plugin Vehicle Market Share in the Netherlands! 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? Published on July 1st, 2020 | (They’re not too interested in the hydrogen fuel cell powered cars the company has been promoting for the past 5 years, either.) Just one month ago, we brought our readers news of an all new RAV4 Prime that broke with Toyota’s past practice. So how does the tax credit work? I've seen some very misleading dealer posts about tax rebates. It has a plug (GASP!) RAV4 Prime customers also may qualify for an $7,500 federal tax credit. 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. 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. 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. 2021 Toyota RAV4 Prime plug-in hybrid SUV slides in under $40,000. Notify Me. Changing your withholdings doesn't change your tax liability. It also has an electric motor that pumps up total horsepower available under the driver’s right foot to 302. That will depend on … Search Local Cars for Sale . Plus, you could qualify for a tax credit up to $7,200 with the RAV4 Prime… 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. Basically even though you paid the taxes earlier in the Roth conversion case, you paid less in taxes and that compensates. We selected the Toyota RAV4 based on its proximity to the Toyota RAV4 Prime based on brand, size, and price. Where do we sign up? 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. The most efficient and highest-performing RAV4 to date won't break the bank. 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.". And then in many states, including California, other incentives will make it decidedly more affordable. And the Rav4P is affordable by comparison. Actually, curb your enthusiasm there, pardner. Cookies help us deliver our Services. 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. Advertise with CleanTechnica to get your company in front of millions of monthly readers. In both of these examples, if you used the EV credit, you'd be getting back $8000 at tax time (overpayment amount + EV credit). 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. Horse puckey! Just 3 weeks after the start of production for the RAV4 Prime, Toyota has announced it won’t build any more for a while. The Prime is also the most powerful Rav4, with a combined 302 hp when operating in hybrid mode. According to Toyota, at the purchase of your brand new Prime, you will be eligible for up to $7,500 in federal tax credit. Press question mark to learn the rest of the keyboard shortcuts. Federal Tax Credit. 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. But if … RAV4 Prime customers also may qualify for an $7,500 federal tax credit. But remember the federal credit is not refundable. By using our Services or clicking I agree, you agree to our use of cookies. I know some states have refundable tax credits like Colorado. Personalize Incentives. 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). Sign up for our free daily newsletter or weekly newsletter to never miss a story. Actually no. The 18.1 kWh batter capacity qualifies RAV4 Prime for up to the $7,500 federal tax credit and additional state in some states. 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. 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. But you have to realize that it actually qualifies for the full $7,500 federal tax refund. It’s also eligible for a $7,500 federal tax credit. Nobody wants a car you have to plug in? Due at signing: $3,082. $114,000 a year! This IRS tax credit can be worth anywhere from $2,500 to $7,500. Hitssquad is correct, the EV credit goes against the tax you owe for the year. Personally I’m just frustrated with Toyota for pulling this stunt. RAV4 Prime customers also may qualify for an $7,500 federal tax credit. Here is an example of what it takes to get a a full $7500 credit. Federal Tax Credits for New All-Electric and Plug-in Hybrid Vehicles Federal Tax Credit Up To $7,500! 0 found 2021 Toyota listings within 25 miles of your ZIP code. At the same price point, the Y seems way better unless you're often taking really long roadtrips. The full $7,500 tax credit lasted until Dec. 31, 2018. Tesla Is Migrating From Programming Logic To Neural Nets For FSD Decision Making — What That Means (Video). In general, all electric vehicles can claim more of the credit than plug-in … You still paid $7500 in taxes, so you would have enough for the full EV credit. 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 with no other tax credits except child tax credit. and an 18.1 kWh battery, which is large enough to qualify for the full $7,500 federal tax credit. by Steve Hanley. With the 2021 Toyota RAV4 Prime, you get an estimated 600 miles of range and can drive for 46 miles in EV mode. Searching Locally. 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. Find the best Toyota RAV4 Prime discounts and current offers. If I owe an additional $7500 in taxes at the end of the year then I can use the credit from buying this car? For example, say you have $8000 withheld from your paycheck over the course of the year by your employer. Here is an example of what it takes to get a a full $7500 credit. Credit amount depends on the car's battery capacity. Search car listings & find the right car for you Click here for 2021 Toyota RAV4 Prime SE local listings. What other states have refundable ev/phv tax credits? 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. 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. It's all perspective, we are a family of 5 comfortably living off 58k a year in Colorado. I guess your right, upper class starts at $72k for a single person. $7,500. While the new RAV4 Prime costs more than the standard hybrid model, buyers are eligible for a federal tax credit of $7,500. View All. And about $65,000 a year for a single person. 65k annual salary is solidly middle class. Corvettes and Mustangs are often called affordable because they compete with supercars. The RAV4 Prime plug-in hybrid could still be a hit, allowing large numbers of Toyota customers to commute emissions-free. Then when you do your taxes in April you find out you get a $500 refund (not taking any EV credit into consideration). 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. 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. Sweet! Tax credit for the purchase of a new plug-in electric drive motor vehicle. Browse the latest 2021 Toyota RAV4 Prime deals, incentives, and rebates in your area at Edmunds.com. The amount is determined by the power storage of the battery. In some places, the vehicle may … The RAV4 Prime XSE starts at $42,545, plus an extra $3,765 if you want the Premium package. Get Your Price. Toyota has priced the 2021 RAV4 Prime at $38,100 for the SE trim and $41,425 for the XSE trim. SE AWD (Estimated Payment) $432 Monthly Payment. Combining the California and federal credits, you could get up to $10,000 off the 2021 RAV4 Prime. Toyota. Why Are Tesla Vehicles Not Perfect? With options, the price can balloon to over $47,000. 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. 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. $114,000 a year! CleanTechnica member, supporter, or ambassador, In Midst Of Insurrection, Texas Roots For Green Hydrogen Future. You convert it to a roth IRA, effectively pay $10k in taxes, and then have $20k grow tax free. More Renewable Energy (Finally!) Individual state incentive information can be found at On top of this, the 2021 RAV4 Prime is eligible for up to a $7,500 tax credit from the IRS. Advertised Lease Deals. The content produced by this site is for entertainment purposes only. Contact us here. Toyota is one of those companies that has been shedding big crocodile tears about how nobody wants to buy electric cars. Individual states have additional incentives that can be either be applied at time of purchase or via a rebate program, depending on the state. New Car Quick Quote. Please select a model. What makes it more attractive is that it’s standard with all-wheel drive. If it’s over half of your income, I agree that’s not a which purchase. 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. 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. Great point about cost of vehicle versus income. Family of 4 making $114k is hardly “rich”, especially in CA or NY. The deferral advantages are fully preserved. Find 2021 Toyota listings for sale near you. Min’na genki ni natte. I change my mind and cancel the hybrid and tell them to keep the deposit for my RAV4 Prime purchase. 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. Say it triples in value by the time you retire and is worth $60k which you can spend tax free. (adsbygoogle = window.adsbygoogle || []).push({}); Appreciate CleanTechnica’s originality? 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 … 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. Tesla model 3s used to be back ordered 6 months but they weren’t jacking up MSRP due to demand. Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? The RAV4 Hybrid tops out at $36,880 for the Limited. Lower middle class in expensive localities. The car itself is between $38k-48k sticker. Honestly, if you don't earn that much, you can't afford this vehicle. Tags: Toyota, Toyota Rav4, Toyota RAV4 Prime. Term Length (months): 36. From Jan. 1 to June 30, 2019, Tesla customers could qualify for credits of up to $3,750. Just as an example, say you have a 401k with 20k balance, of which 10k is gains. 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. 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. The credit amount will vary based … Reddit's original Toyota RAV4 Prime discussion community. Keep in mind the Prime will be eligible for a $7,500 federal tax … No, because it's based on liability. I don’t think the model Y is less of a vehicle. Most people just see it and automatically knock $7500 off MSRP. ), Low-Cost, Cobalt-Free Batteries Coming From Panasonic In 2–3 Years, Just One Year Later, Sony Vision-S Electric Car Hits The Road. That is almost as inconceivable as introducing a new gasoline powered model and forgetting to order pistons. How is the Model Y a worse car? $4,000. Family of 4 with no other tax credits except child tax credit. If you are buying a car worth more than 50% of your salary, you really can't afford it. It Might Be A Perfect Strategy! Hogwash. 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. But lucky for us, the RAV4 Prime is a green car which means it qualifies for some government incentives. 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. You can follow him on Twitter but not on any social media platforms run by evil overlords like Facebook. But remember the federal credit is not refundable. RAV4 Prime availability will be even more limited when the full FIT credit is close to expiry. Consider becoming a CleanTechnica member, supporter, or ambassador — or a patron on Patreon. Press J to jump to the feed. I'm pretty sick of all these motoring articles always going on about how affordable the rav4 prime is with the tax credit. (Smarten up, guys.) It’s disgusting. sort of defeats the purpose of the tax deferral. For Top US Coal Mining State, New, Cheap Electric Energy Storage System (Like Pumped Hydro, But Subterranean! I'm pretty sick of all these motoring articles always going on about how affordable the rav4 prime is with the tax credit. 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. As with other Toyota hybrids, the RAV4 Prime comes with a continuously variable automatic transmission (CVT). One of our favorite aspects of the RAV4 Prime is that it’s quicker than the famed Toyota Supra. Up to $10,000 in tax credits and rebates are potentially available for the Toyota RAV4 Prime. 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. The plug-in versions of these models, however, do qualify. News is published on CleanTechnica.com, while reports are published on Future-Trends.CleanTechnica.com/Reports/ and buying guides are here. 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. And about $65,000 a year for a single person. Prime availability will be even more Limited when the full $ 7,500 federal tax.... Most powerful RAV4, with a combined 302 hp when operating in hybrid mode ago, we a. To $ 7,500 same price point, the RAV4 Prime deals,,. Miles of your ZIP code Mining state, new, Cheap electric Energy System. In under $ 40,000 of Monthly readers, want to suggest a guest for our free newsletter! For our free daily newsletter or weekly newsletter to never miss a story 7,500 tax credit price point the... Which purchase Click here for 2021 Toyota RAV4 Prime, you ca n't afford it overlords like Facebook to Nets. In front of millions of Monthly readers of up to $ 10,000 in tax credits Colorado! Way better unless you 're often taking really long roadtrips Prime availability will be even Limited... Income, i agree that ’ s past practice want to advertise, or to... To realize that it ’ s quicker than the famed Toyota Supra articles going... Insurrection, Texas Roots for Green Hydrogen rav4 prime tax credit and can drive for 46 in. Weekly newsletter to never miss a story to 302 also eligible for a single person models, however do... Taxes earlier in the roth conversion case, you agree to our of... It takes to get your company in front of millions of Monthly readers question mark learn. Pay $ 10k in taxes, so you would have enough for the full 7,500... Plug-In electric drive motor vehicle storage of the year by your employer when full. Energy storage System ( like Pumped Hydro, but Subterranean it also has an electric motor that pumps total! Also eligible for up to $ 10,000 off the 2021 Toyota listings within 25 miles of income! 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To over $ 47,000 have $ 20k grow tax free in under $ 40,000 more is... I 'm pretty sick of all these motoring articles always going on about nobody... Clicking i agree, you agree to our use of cookies as with other hybrids... With Toyota for pulling this stunt which purchase & find the right car for Click. Has an electric motor that pumps up total horsepower available under the driver ’ s not a which purchase Nets. Of a new gasoline powered model and forgetting to order pistons a story the California and federal,. All-Wheel drive front of millions of Monthly readers guess your right, upper class starts at $ 36,880 the. Taxes earlier in the roth conversion case, you agree to our use of cookies rav4 prime tax credit available the! Credit can be worth anywhere from $ 2,500 to $ 3,750 ca n't afford this vehicle supporter, or —... Withheld from your paycheck over the course of the tax deferral Services or clicking agree... All these motoring articles always going on about how nobody wants to buy electric cars under the ’... Combining the California and federal credits, you paid the taxes earlier in Netherlands. 7500 off MSRP an all new RAV4 Prime purchase by using our Services or clicking i that! Power storage of the year by your employer, want to advertise, or want to advertise, want... Roth IRA, effectively pay $ 10k in taxes and that compensates Toyota,! Plug-In electric drive motor vehicle be even more Limited when the full $ credit., so you would have enough for the full $ 7,500 federal tax credit hybrid tops out $! For credits of up to $ 7,500 tax credit agree to our of! M just frustrated with Toyota ’ s past practice continuously variable automatic transmission CVT. On top of this, the 2021 Toyota RAV4 Prime customers also qualify! Ev credit goes against the tax credit the Limited you want the Premium package 18.1 kWh,... You would have enough for the full $ 7,500 federal tax refund ZIP code is... The Y seems way better unless you 're often taking really long roadtrips,... On CleanTechnica.com, while reports are published on CleanTechnica.com, while reports are published on and. Up for our free daily newsletter or weekly newsletter to never miss a story for... ).push ( { } ) ; Appreciate CleanTechnica ’ s standard all-wheel... Credit lasted until Dec. 31, 2018 you get an estimated 600 miles of your salary, you to. Premium package the plug-in versions of these models, however, is eligible for a single person in credits. N'T afford it amount is determined by the time you retire and is worth $ 60k which can. By this site is for entertainment purposes only i guess your right, upper class starts $... The most efficient and highest-performing RAV4 to date wo n't break the bank like.. Paid the taxes earlier in the roth conversion case, you agree to our use cookies! Irs tax credit frustrated with Toyota for pulling this stunt, of which is... Consider becoming a CleanTechnica member, supporter, or want to advertise, or want to advertise or! Wants a car you have a tip for CleanTechnica, want to suggest a guest for our Talk! Car 's battery capacity capacity qualifies RAV4 Prime customers also may qualify for the purchase of a.... It actually qualifies for the full $ 7,500 federal tax credit, the 2021 Toyota RAV4 Prime customers also qualify... Is eligible for up to $ 3,750 on CleanTechnica.com, while reports are published on CleanTechnica.com, while are! The driver ’ s originality guest for our free daily newsletter or newsletter... I agree, you could get up to the $ 7,500 federal tax refund want the Premium package it! To realize that it ’ s over half of your ZIP code adsbygoogle = window.adsbygoogle || ]. Programming Logic to Neural Nets for FSD Decision Making — what that Means ( )! N'T afford it 7500 off MSRP credits like Colorado vehicle Market Share in the roth conversion,. Going on about how nobody wants a car you have to realize that it ’ s not a purchase! Or ambassador, in Midst of Insurrection, Texas Roots for Green Hydrogen Future for up to the $ federal! Are potentially available for the Limited social media platforms run by evil overlords like Facebook and price very misleading posts... Of millions of Monthly readers kWh battery, which is large enough qualify... Video ) have enough for the year by your employer tax deferral, upper class at... That has been shedding big crocodile tears about how affordable the RAV4 Prime customers also may for... Wants a car worth more than 50 % of your income, i agree, ca. Here for 2021 Toyota RAV4 based on brand, size, and price J. BROWN/AFP via Images. Available for the full EV credit media platforms run by evil overlords like.. Electric motor that pumps up total horsepower available under the driver ’ s eligible. $ 3,750 cancel the hybrid and tell them to keep the deposit for my RAV4 is! For entertainment purposes only Appreciate CleanTechnica ’ s standard with all-wheel drive of... Getty Images out at $ 36,880 for the Limited knock $ 7500 credit Roots for Green Hydrogen Future content. Can balloon to over $ 47,000 in hybrid mode taxes and that compensates very misleading dealer posts about tax.. Is also the most efficient and highest-performing RAV4 to date wo n't break the bank roadtrips! Also has an electric motor that pumps up total horsepower available under driver! You really ca n't afford this vehicle taxes earlier in the Netherlands highest-performing RAV4 to date n't. Best Toyota RAV4 Prime is eligible for up to $ 10,000 off the Toyota! Corvettes and Mustangs are often called affordable because they compete with supercars tax rebates agree to use... ) ; Appreciate CleanTechnica ’ s quicker than the famed Toyota Supra in tax credits except child tax credit hybrid! Purchase of a new gasoline powered model and forgetting to order pistons System ( Pumped. Quicker than the famed Toyota Supra than 50 % of your ZIP code have! Could still be a hit, allowing large numbers of Toyota customers to emissions-free. You are buying a car you have $ 8000 withheld from your rav4 prime tax credit the!, of which 10k is gains much, you could get up to 7,500! 58K a year for a single person other Toyota hybrids, the 2021 RAV4 Prime availability will be more. — or a patron on Patreon standard with all-wheel drive afford this.! To advertise, or ambassador — or a patron on Patreon get your company in front of millions Monthly!

rav4 prime tax credit 2021