Why Subaru Solterra EV edges Toyota bZ4X twin in price

The announcement will trigger a six-month phaseout — which begins at the start of the following quarter — in which the maximum federal EV tax credit for qualifying Toyota and Lexus vehicles will fall to $3,750, followed by a second reduction six months after, when it will fall to $1,875. Afterward, it phases out completely. Buyers may be eligible for additional state and local EV tax incentives.

Among credit-eligible vehicles are the bZ4X and electric Lexus RZ 450e, which is due in the U.S. late this year, as well the Prius Prime and RAV4 Prime plug-in hybrids.

Though the Solterra will be manufactured at a Toyota plant in Japan, a Subaru of America spokesman confirmed that eligible Solterra buyers will qualify for the full credit. Subaru has more than 95 percent of its $7,500 federal tax credits still available to its customers, since the only other eligible vehicle it sold was a plug-in hybrid version of the Crosstrek in limited quantities.