The push to incentivize electric vehicle ownership just got a little harder. Most electric vehicles no longer qualify for the full $7,500 federal tax credit that helped millions of buyers lower the cost of switching from gas-powered vehicles to electric over the last decade.
Changes to the tax credit language took effect Tuesday afternoon when President Joe Biden signed into law the Inflation Reduction Act, which includes a number of federal provisions aimed at keeping EVs affordable and limiting China’s influence on the supply chain. Under the new law, in order to qualify for tax credits, buyers must have an income below a certain threshold, the vehicle they select must not exceed a certain price point, and the vehicle’s battery must be made in North America. Auto analysts say these requirements will likely block some buyers from receiving tax credits, particularly those who are more wealthy, but the new legislation is expected to incentivize lower-income households to purchase EVs in the near future.
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Article URL : https://time.com/6206639/electric-vehicle-tax-credits-inflation-reduction-act/