EV Federal Tax Credit

The Chevy Bolt is already a great enough deal to get our Electrek Vehicle of the Year award, but after the US Treasury delayed its guidance on battery sourcing requirements, that deal might be even better – but only for the next couple of months.

The United States Treasury department announced it will delay its guidance in regard to the sourcing requirements for battery materials in order for EVs to qualify for federal tax credits. Beginning January 1, 2023, a slew of new requirements will still take affect, but the lack of battery guidelines could offer a brief window in 2023 where electric vehicle purchases that may not fit the pending battery sourcing requirements still qualify for some level of tax credits.

The Inflation Reduction Act, the major climate bill, was signed August 16, changing the availability of electric vehicle tax credits. The law is still in the process of being implemented, so tax credit qualifications continue to change as the IRS offers further guidance. This post intends to break down the current eligibility requirements for the EV tax credit as they continue to be updated.

Volkswagen Group CEO Oliver Blume recently shared that the company is actively searching for a home for its first battery cell factory in North America. Furthermore, Blume has named Canada specifically as “one logical option.” By joining Volkswagen’s current EV production footprint in Tennessee, the Group may soon meet the battery manufacturing requirements outlined in the Inflation Reduction Act for vehicles like the ID.4 to continue to qualify for US federal tax credits, while opening the door for more EVs under its umbrella to qualify.

You may be in luck if you’re looking to buy an electric vehicle. A new bill introduced in the US Congress called the Affordable Electric Vehicles for America Act would allow essentially all EVs in the US to qualify for the $7,500 tax credit if passed.

The European Union has asked the United States to include EVs, batteries, and other sustainable products sold on US soil in federal tax credits, similar to benefits it currently offers its North American neighbors. According to a recent report, the US and EU are in discussions about what’s possible.

General Motors CEO Mary Barra spoke with analysts Tuesday, saying GM’s EV models will be able to qualify for the full tax credit in two to three years.

With more mainstream curiosity surrounding EVs, bolstered by a ten year extension in federal tax credits under the Inflation Reduction Act, there’s never been a more exciting time to buy an EV, and there has never been a wider selection of options to choose from. What many US consumers may not be aware of, however, is what electric vehicle tax credits may be available to them at the state level in addition to discounts or money back on EV charger installations. Luckily for you, we’ve broken it all down, state-by-state, below.

Georgia Senator Reverend Warnock introduced a new bill that would expand which electric vehicles qualify for a tax credit through the Inflation Reduction Act. The Affordable Electric Vehicles for America Act would give automakers like Hyundai a “grace period” to build and assemble EVs in North America, allowing them to qualify for the tax credit.

Kia will start producing electric vehicles in the United States starting in 2024 in order to qualify for new EV tax credits in the Inflation Reduction Act, according to Korean news outlets Maeli Business News and SBS.

Magna Steyr – an Austrian-based contract manufacturer owned by Magna International – recently shared aspirations to enter the US market and produce vehicles in a climate-friendly facility in North America. The facility overseas currently manufactures the Jaguar I-Pace and will begin production of the Fisker Ocean in November. Based on revised terms for US federal tax credits, could a move by Magna happen?

Spoiler alert: A week after announcing the first EQS SUV models began rolling off its US assembly lines, Mercedes-Benz has finally shared what starting price and trims consumers can expect to see. Although this all-electric SUV and its battery components will be built on US soil, its price tag will prevent US customers from qualifying for federal tax credits. Shocking.

Biden will sign the Inflation Reduction Act tomorrow, Tuesday, August 16, which means Monday, August 15 is the last day to qualify for the “old” EV Tax credit.

Update: The bill is now signed. The Inflation Reduction Act is law. Click through for information on the new EV Tax Credit.

Rivian, Fisker, and other EV makers are offering binding purchase agreements to reservation holders after the Senate passed the Inflation Reduction Act with big EV tax credit changes. The availability of tax credits could change within the span of the next few days now that the House has passed the bill, if President Biden signs it quickly.

Major Update: The bill has been signed. It is now law. Click through for information on the new EV Tax Credit.

If you’re looking to buy an EV soon, check below to see how various manufacturers will be affected by these changes, and what you can do to try to ensure access.

The United States House of Representatives has voted to pass the Inflation Reduction Act, the massive climate bill passed by the Senate on Sunday, in a party-line vote of 220-207, supported by Democrats and opposed by republicans.

Now it goes on to Biden’s desk – where the President is expected to sign it in the coming days – which will immediately affect the availability of EV tax credits.

Major Update: The bill has been signed. It is now law.

The Senate has voted to pass the Inflation Reduction Act, which includes nearly $400 billion over 10 years in funding for climate and energy related programs, and an extension and improvement of the US electric car tax credit.

Update: Since many EVs may lose access to tax credits within a week or so, we’ve posted an article to help you find out how best to navigate these changes for most affected EVs in the US.

Major Update: The bill has been signed. It is now law.

Toyota has sold its 200,000th plug-in car in the US, meaning its access to the $7,500 federal tax credit will sunset over the course of the next 15 months.

The company joins Tesla and GM in no longer qualifying for credits, with Ford and Nissan also expected to hit the limit later this year.

According to recent comments from Toyota North America, the automaker expects to surpass the 200,000 vehicle threshold for EV sales sometime this summer, disqualifying itself from any additional tax credits in the United States under current legislation. Toyota’s federal tax credits will be phased out just as the automaker plans to begin sales of its lone BEV, the bZ4X, later this year.

During a congressional sprint to pass legislation before holiday recess, the US Senate is reportedly planning to put a pin in President Joe Biden’s $1.9 trillion Build Back Better bill to focus on other acts it hopes to pass before 2021’s end. Unfortunately, any delays to the Build Back Better bill means a delay in the proposed revisions to federal tax credits for EV automakers and moreover, US consumers.

The US House of Representatives passed the $1.9 trillion “Build Back Better” legislation early this morning, following a lengthy session that included a record-setting speech from House Minority Leader Kevin McCarthy. The Build Back Better bill, which includes robust changes to federal tax credits for EVs, will now face the Senate, where two vital Democrats have already shared that they are undecided on their vote.

After an entire day (and indeed months) of deliberation and negotiations, Congress approved a long-debated infrastructure bill totaling $1.2 trillion. The 228-206 vote held by the US House of Representatives early Saturday morning will put a core piece of President Biden’s domestic legislature into action. While six Democrats didn’t vote for the bill, 12 Republicans joined

While this is a huge win for the Biden administration, the President and House Speaker Pelosi were unable to land a vote of passage for the “Build Back Better Act,” which includes a restructured federal tax credit for EVs to up to $12,500.