As of January 1st, 2023, a bunch of electric vehicles became newly eligible for the $7,500 tax credit, which passed into law as part of the $430 billion Inflation Reduction Act a year ago.
Some models new to the list had lost their eligibility when their manufacturer hit the previous credit’s sales cap of 200,000 vehicles (Tesla models, Chevy Bolts). Others have recently shifted their production to North America, meeting one of the crucial requirements (VW ID.4).
There’s still a lot in the air right now — the Treasury Department has set a March deadline for releasing guidance on some of the thornier issues surrounding battery material sourcing and other rules that could drastically reduce the eligibility list if enacted — but for now, these are the EVs that qualify.
Foreign automakers are pressuring the Biden administration to give them a piece of the action, while Senator Joe Manchin (D-WV) is threatening to block the implementation in an effort to prevent companies from exploiting loopholes. And Tesla CEO Elon Musk is whining about how it’s “messed up” that certain versions of the Tesla Model Y that exceed the $80,000 price cap don’t qualify, while a bunch of hybrid Jeeps do.
Bottom line: if you’re unsure whether the new EV you’re eyeing qualifies for the credit, talk to an accountant. Every state has at least a few CPAs that are familiar with the EV tax credit craziness and can help you navigate the murky waters ahead. They can also tell you what state incentives, if any, may be available.
This list is a good start, but don’t consider the last word.
Technopreneurph 