EV Federal 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.

Sixty-six percent of registered US voters say developing sources of clean energy should be a high or very high priority for the president and Congress. That’s according to a study released last week by Yale University and George Mason University’s climate change communication programs.

Marie Sapirie of E&E’s Tax Notes group reports on some potential big developments for the US federal EV tax credit contained in a draft bill, the ‘‘Growing Renewable Energy and Efficiency Now Act of 2019’’ or ‘‘GREEN Act of 2019’’. The draft is being promoted by Congressman Mike Thompson (D-CA), a member of the powerful Ways & Means committee, which is the chief tax-writing committee in the US House of Representatives. That means this draft bill should be taken seriously. The bill is a potential huge win for Tesla and General Motors, for whom the existing credit has almost fully extinguished.

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A House Democrat is set to introduce a bill that would expand the electric vehicle federal tax credit in the U.S., while linking it to domestic automotive manufacturing.

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A Trump administration official has now announced that they are indeed planning to kill to the federal tax credit for electric vehicles, but they are offering a strange timeline as it is unclear if they even have the power to do it.
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Several automakers, including Tesla, GM, and Nissan, have joined forces with other players in the electric vehicle space to launch a “coalition” with the aim to “reform and recharge” the electric vehicle tax credit.
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These are confusing times for the US’ federal tax credit for electric vehicles as three different bills have been introduced to the legislation to change the law.

The latest would be good news for Tesla and GM as it would remove the 200,000 car delivery cap, which the former has reached and the latter is about to reach, and replace it with a deadline.
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Last night, voting in the dead of night, offering little opportunity for bipartisan discussion and despite the public opposing the plan by nearly a 2:1 margin, the Republican party passed their bill which raises taxes on the middle class and will add $1.5 trillion to the deficit through the US Senate, paving the way for the bill to become law.

Despite initial confusion, the version of the bill passed in the Senate looks like it does keep the $7,500 EV credit intact.  Originally we weren’t sure whether the version passed did maintain the credit, given that the 479-page bill was revealed just hours before the vote, and it’s full of illegible scribbles in the margins.  But the House version of the bill eliminates the credit, and either version could prevail as the differences are worked out between the two (call your representative if you have thoughts on that).

What the bill certainly does keep intact, though, is the US’ portion of the massive ~$5 trillion yearly global subsidy which fossil fuels benefit from in the form of unpriced externalities.  There’s a solution to this, and this solution has even been proposed by many high-profile Republicans.

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Early this morning, the U.S. Senate passed their major tax bill after weeks of debate and according to the latest available information, it looks like the federal tax credit for electric vehicles is still in danger despite some changes since the original introduction of the bill that removed the incentive.

Update: we are receiving other reports suggesting the EV tax credit wasn’t removed from the approved bill with Senator Flake’s amendment, but it is still unclear. We actually don’t know exactly what they passed and most senators probably don’t either if we are being honest.

Update 2: The amendment is now confirmed not to be in the bill that passed in the Senate – document in full further down.
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