Tax Credits Should Apply To The Lexus ES300h

Hybrids like the Lexus ES300h make a great case for those who are hesitant about going full EV.

After a week with the Lexus ES300h, I could only deduct one conclusion. “Why aren’t hybrids incentivised like EVs?” Considering how this hybrid does a great job at reducing tailpipe emissions, overall emissions, and more, it makes for a curious case. But it doesn’t get tax credits for a number of reasons.

The biggest and most notable reason is that the ES300h isn’t built in the US. The Inflation Reduction Act signed by the White House takes the beneficial tax credits that were used to initially lure manufacturers into EV production, and strips them away for cars not made in the US. Most of the Lexus and Toyota PHEV and full EV’s aren’t made here. As such, they get hosed.

While I fully understand that EVs are beneficial in some ways to the environment and it does help the US economy to produce them here, it doesn’t make sense to play favorites if the ultimate goal is to go all electric. If it really was about the environment, cars like the ES300h should have at least some support or incentive.

The entire reason for the short rant above is because the ES is quite good. The EPA’s own ratings prove this. Hybrid ES models produce 3.3 tons of tailpipe CO2 per year, compared to 5.7 for the V6. That’s a huge reduction. And fuel consumption is lower too. Annual fuel consumption for the Hybrid is about 286 gallons, and the V6 drinks up 193 on top of that.

Thankfully the ES300h is good enough on its own that it doesn’t need the government to convince you to buy it.

Yes horsepower ratings are different. The V6 gets 302 horsepower and the hybrid has 210. Torque has a smaller delta with 267 vs 220. But its the earlier power delivery that makes up the difference in overall numbers. Because despite it being an F-Sport model, it’s not a sports car. And you won’t be driving it like one anyway.

Driving the ES300h is, normal. And in this instance that’s high praise. Glass Fuses focuses on the fun and exciting, but we do understand regular car sexist too. A few longer-haul trips in the ES prove it to be a great highway companion, with barely believable fuel consumption. I breached 40 mpg regularly, and the plug-in hybrids couldn’t come close to that as they revert back to all ICE on longer journeys.

I didn’t think the black on white interior would grow on me either, but it has. And interiors on Lexus models are wonderful these days. Gone is the funky/peksy track pad that used to be a “delight” to write about and now you have an easy to use touch screen. Other parts of the Lexus interior are familiar to many, as this most recent ES generation has been around since 2019.

And the styling is nice too. Though one would once bemoan the grill on the lexus (and some still do) it’s very clear that other manufacturers are capable of much more offensive styling crimes. I’ve grown to accept it. And if the front end of the car is distinct, the rest of the car is rather unoffensive. It is nice to have something shaped like a sedan rather than a weird tall-sedan/crossover/SUV. It looks low ands sleek. But it is also kinda ordinary.

And ordinary is what people actually want in a car. Think I’m wrong? Check out the constant barrage of tabloid-like headlines any time something happens to a battery powered vehicle. It’s almost as if the entire media industry has a quota to meet regarding headlines about EV malfunctions. “Tesla recall!!” “Amazon delivery truck seen connected to a gas generator at the side of the road.” “EV charging stations charge slowly!!” As an enthusiast, and someone who puts forward an effort to be honest, its exhausting.

And that’s why I like the ES300h. It’s not a revolution. It’s a better car. But that doesn’t get clicks or headlines.

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