The Inflation Reduction Act states that if an electric vehicle is to be eligible for tax credits, it needs to be made in North America. According to the Alliance for automotive innovation, the law ends credits for 70% of the models that were eligible before.
Under the new legislation, the cut for EV tax credits of up to $7,500 through the end of the year will be maintained for 20 model year 2022. The Clean Vehicle Credit will only be available to manufacturers that have reached their cap of 200,000 EV credits. The models that are still eligible are listed.
The tax credit for electric vehicles will no longer be available after the law was signed. If a customer made a deposit or down payment before Biden signed the law, they can still be eligible. Customers were urged to put down deposits in order to get more tax credits.
January 1, 2023, is when additional provisions are expected to be added. There will be restrictions on battery and mineral sources. As of the beginning of the year, the clock will be reset for General Motor andTesla to be eligible for EV tax credits again.
When buying a vehicle, buyers will be able to transfer their credits to the dealer.
Some manufacturers make vehicles in multiple locations. The build location can be confirmed with the use of the vehicle identification number.
Winners, losers abound as Inflation Reduction Act becomes law
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