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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.

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