An eligible vehicle’s battery must contain certain levels of critical minerals-such as lithium-that are sourced in North America or one of the countries with which the U.S.Here’s more on the new plan that establishes tough new restrictions on where battery materials for electrified vehicles can come from and where qualified vehicles can be assembled: 31, 2022.īecause the battery content restrictions get even more restrictive after 2023, it’s possible that no EVs would qualify for the credit in a few years unless manufacturers adjust pricing, build North American assembly plants and find new, approved sources for their battery materials. Vehicles must be assembled in North America to be eligible, and credit applies to vehicles built after Dec.Income limits for buyers of new vehicles are $300,000 for those filing joint federal tax returns, $225,000 for head of household filers and $150,000 for individual filers.The MSRPs for eligible trucks, vans and SUVs cannot exceed $80,000. Eligible cars cannot have an MSRP exceeding $55,000.Here are the price limits for qualified cars and trucks and income limits on buyers who want to snag the $7,500 credit: Justin Sullivan/Getty Images Lots of Limits Rivian is looking into workarounds to credit $7,500 to customers through 2022. Its initial models, while built in the U.S., start in excess of $100,000, more than 25% above the measure’s price cap for trucks. “Nearly all of our vehicles would be ineligible for incentives” until the company’s lower-priced models are introduced several years from now, said James Chen, vice president for public policy at electric truck and SUV maker Rivian. The industry group has estimated that 70% of the electric and plug-in hybrid vehicles eligible for the existing tax credit would lose eligibility in 2023 under the measure’s tough battery content rules and vehicle price caps. “The $7,500 credit might exist on paper, but no vehicles will qualify for this purchase over the next few years,” John Bozzella, chief executive of the Alliance for Automotive Innovation, said in a statement. The new program continues the credit, but with a different rollout and eligibility requirements. The clean vehicles tax credits program in the Inflation Reduction Act of 2022 is both more inclusive and more restrictive than the present program, which offers up to $7,500 in tax credits. Drew Angerer/Getty ImagesĪ far-reaching climate and energy bill that includes a dramatic makeover of the nation’s electric vehicle tax credit program has received final congressional approval and is on its way to the White House for President Biden’s signature. The Inflation Reduction Act of 2022 is both more inclusive and more restrictive than the present EV tax credit program.
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