The Inflation Reduction Act, which President Joe Biden signed into law Tuesday, says that if automakers want their electric vehicles to be eligible for tax credits, they must have a final assembly line in North America. According to the Alliance for Automotive Innovation, the law, which comes into effect immediately, ends lending for around 70 percent of the 72 previously eligible models.
Approximately 20 model year 2022 and early model year 2023 vehicles will still take the EV tax credit cut of up to $7,500 by the end of the year under the new legislation. Manufacturers who have vehicles assembled in North America and have reached their 200,000 EV credits cap will not be eligible for the newly named Clean Vehicle Credit this year. This means that the following models are still eligible:
EVs eligible for Clean Vehicle Credit starting in 2022 model year
- Audi Q5
- BMW 3 Series Plug-In and BMW X5
- Chrysler Pacifica PHEV
- Ford F Series; Ford Mustang Mach E; Ford Transit van
- Jeep Grand Cherokee PHEV
- Jeep Wrangler PHEV
- Lincoln Aviator PHEV and Lincoln Corsair plug-in
- Clear air
- Nissan Leaf
- Rivian IT; Rivian R1S; Rivian R1T
- Volvo S60
Electric vehicles from model year 2023 are eligible for Clean Vehicle Credit
- BMW 3 Series plug-in
- Mercedes EQS
- Nissan Leaf
EVs that have used up their tax credits
- 2022 Chevrolet Bolt EUV; 2022 Chevrolet Bolt EV; 2023 BoltEV
- 2022 GMC Hummer pickup and SUV
- 2022 Tesla Models 3, S, X and Y
- 2023 Cadillac Lyriq
The signing of the law means electric vehicles sold by Toyota, Hyundai, Porsche, Kia and others will no longer be eligible for the tax credit. However, if a customer paid a non-refundable deposit or deposit equal to 5% of the total contact price before Biden signed the law, they may still qualify. Many automakers had asked customers to do business and put down deposits to squeeze in a few more tax credits.
Additional provisions are expected to come into effect on January 1, 2023. For example, there will be new restrictions on sourcing batteries and minerals, as well as price and income caps. The start of the year will also turn the clock back for General Motors and Tesla to become eligible for EV tax credits again.
Until 2024, buyers can transfer their credits to dealers when purchasing the vehicles in order to reduce the selling price.
The US Department of Energy found that some manufacturers produce vehicles at multiple locations. The build location can be confirmed by referencing a vehicle’s vehicle identification number by using the VIN decoder tool.
https://techcrunch.com/2022/08/16/biden-admin-says-about-20-models-will-still-qualify-for-ev-tax-credits/ Biden admin says about 20 models will still qualify for EV tax credits – TechCrunch