ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Automobiles

U.S. tax credit for EVs out of reach for Toyota, most other Japanese cars

North American production rule for vehicles and batteries presents roadblock

Toyota Motor and other Japanese car companies make almost not electric vehicles or plug-in hybrids in North America. (Photo by Shuji Nakayama)

NEW YORK -- The Biden administration's latest move to promote electric vehicles in the U.S. poses a roadblock for Toyota Motor and other Japanese automakers: a requirement to make the cars in North America.

Sweeping tax, climate and health care legislation that the White House has dubbed the Inflation Reduction Act provides a tax credit of up to $7,500 for buyers of new EVs through 2032. Used EVs qualify for maximum credit of $4,000. Some plug-in hybrids also qualify.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more