The Toyota Prius Prime plug-in hybrid electric vehicle (PHEV) is not eligible for a federal tax credit, as its final assembly doesn’t take place in North America
On August 16, 2022, the passage of the Inflation Reduction Act meant that more electric and hybrid vehicles would be once again eligible for a federal tax credit. While this is good news overall, new eligibility requirements mean that a lot of vehicles no longer meet the criteria for the tax credit—and one of those vehicles is the Toyota Prius Prime.