Starting Jan. 1, many Americans will qualify for a tax credit of up to $7,500 for buying an electric vehicle.
The new law also provides a smaller credit for people who buy a used EV.
But the question of which vehicles and buyers will qualify for the credits is complicated and will remain uncertain until Treasury issues the proposed rules in March. And 50% of the battery parts will have to be made or assembled in North America, eventually rising to 100%. Until Treasury issues its rules, though, the requirements governing where minerals and parts must be sourced will be waived. This will allow eligible buyers to receive the full $7,500 tax incentive for qualifying models early in 2023.were manufactured in North America in the 2022 and 2023 model years. They’re from Audi, BMW, Chevrolet, Chrysler, Ford, GMC, Jeep, Lincoln, Lucid, Nissan, Rivian, Tesla, Volvo, Cadillac, Mercedes and Volkswagen.
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EXPLAINER: 2023 tax credits for EVs will boost their appealStarting Jan. 1, many Americans will qualify for a tax credit of up to $7,500 for buying an electric vehicle. The credit, part of changes enacted in the Inflation Reduction Act, is designed to spur EV sales and reduce greenhouse emissions.
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