Background News: EVs Eligible for $7,500 Tax Credit in Inflation Reduction Act
EV Tax Credits Clarified: Which Cars Get the Full Benefit?
Only 16 models are now eligible for a full or partial tax credit, which will factor into the vehicle choices for private- and public-sector fleets as well as the vast American retail vehicle market.
April 19, 2023
The list of qualifying electric vehicles will likely change often for the next several years. Some vehicles that have lost all or part of their tax credit could regain it as car builders change suppliers, according to Kelley Blue Book.
Photo: Getty Images / com3alexd
1 min to read
While Congress rewrote the rules governing EV tax credits in a law passed last year to take effect Jan. 1, 2023, it has taken time for agencies to figure out how they’ll carry out the new law.
The new law was confusing, with some changes delayed until now. Congress' intent was to shape the future auto industry while incentivizing Americans to buy electric vehicles. This explainer from Kelley Blue Book lays out the details, including a quick-hit list of qualifying cars and incentive amounts.
For a complete list of updated tax incentives for: new plug-in and fuel cell electric vehicles and used plug-in and fuel cell electric vehicles, check out the Department of Energy’s updated Tax Incentive and Credit Guide.
As to the BIG WHY of all these changes, a report in the Wall Street Journal analyzes the latest plans to favor EV manufacturers who meet new thresholds that require a certain percentage of the battery parts and minerals to come from a qualifying country.
Originally posted on Automotive Fleet
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