{"id":29400,"date":"2022-08-16T21:11:47","date_gmt":"2022-08-17T01:11:47","guid":{"rendered":"https:\/\/autosector.com\/?p=29400"},"modified":"2022-08-16T21:11:47","modified_gmt":"2022-08-17T01:11:47","slug":"ev-tax-credit-list-of-cars-eligible-7500-inflation-reduction-act","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=29400","title":{"rendered":"Here are the cars eligible for the $7,500 EV tax credit in the Inflation Reduction Act"},"content":{"rendered":"

The Inflation Reduction Act<\/a>, the major climate bill, was signed today<\/a>, changing the availability of electric vehicle tax credits. Now, only EVs assembled in North America qualify for the credits. Today the US government released a preliminary list of which vehicles currently qualify for the $7,500 EV tax credit.<\/p>\n

There are a number of provisions in the new climate bill affecting the availability of EV credits, and those provisions will phase in over the coming months and years. Most of them are focused on bringing more EV and battery production to the US.<\/p>\n

But the phase-in times of various provisions have created a lot of confusion in the EV community about which vehicles will qualify and when.<\/p>\n

The Department of Energy\u2019s Alternative Fuels Data Center has released the list of vehicles<\/a> with final assembly in North America, and we\u2019ve copied the list below.<\/p>\n

We\u2019ve added links where possible so you can search local dealer inventory for the car you\u2019re looking for. We\u2019ve also added our own notes in the \u201cnote\u201d column to clarify which models qualify.<\/p>\n

The list does include vehicles that are assembled in North America but for which the manufacturers are currently over the 200k cap on the previous credit. That cap is lifted on January 1, 2023, so <\/strong>cars tagged as \u201cmanufacturer sales cap met\u201d will not qualify for the electric car tax credit until next year<\/strong>.<\/p>\n

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Note that this list is not written in stone, and will change with the phase-in of other provisions of the new EV tax credit or as manufacturers change their production plans (for example, VW moving 2023 ID.4 production to Tennessee<\/a>). We can\u2019t guarantee that any given customer will get access to the credit and are providing the best information we can.<\/p>\n

Further, some models may change production mid-year or based on specific trim levels, so you should confirm that your individual vehicle was assembled in a North American plant. The AFDC recommends that you use the NHTSA VIN decoder<\/a> on your VIN to confirm that it was assembled in North America. The country name of the final assembly plant can be found under \u201cplant information\u201d at the bottom of the page.<\/p>\n

Additionally, the IRS has released a page explaining<\/a> section 30D of the Internal Revenue Code, which is the section that contains the EV tax credit. This includes a description of what a \u201cwritten binding contract\u201d is, which allowed EV buyers to take the \u201cold\u201d credit if they signed a purchase contract before the day the IRA was signed<\/a> (today).<\/p>\n

Other requirements which have not yet phased in include battery material and critical mineral sourcing guidelines which will be developed by the IRS. The IRS must issue those guidelines by the end of this year, but from the language on the page, it feels<\/em> like the IRS probably<\/em> won\u2019t issue them until December 31 (or maybe that\u2019s just wishful thinking on our part).<\/p>\n

Some vehicles will not qualify for the EV tax credit once the IRS issues its guidance, due to being above the $55k MSRP cap for cars and $80k MSRP cap for trucks. Income caps will also be put into place, meaning those earning over $150k ($225k head of household, $300k filing jointly) will not qualify.<\/p>\n

There\u2019s also a provision to allow buyers to take advantage of the EV tax credit upfront at the point of sale, but from our reading of the bill, that doesn\u2019t seem to go into place until 2024.<\/p>\n

The information in this article supersedes our older article, which had information on the \u201cold\u201d tax credit<\/a><\/em>.<\/p>\n

Electrek\u2019s Take<\/h2>\n

The confusion over these new EV tax credits is unfortunate, and we wish their implementation was made a little simpler and a little less sudden. But given the difficult political situation regarding the passing of the bill, once the Senate reached a compromise, nobody wanted to touch the bill\u2019s language. So, unfortunately, with half of the Senate unwilling to support this important legislation, we got what we got.<\/p>\n

We hope the IRS will make implementation of the new EV tax credits easier by phasing everything in at the same time, and will be responsive to public comments which we\u2019ll inform you about when they become available.<\/p>\n

The number of plug-in hybrids on the list is a little unfortunate \u2013 it feels like hybrids should get a smaller portion of the credits than full EVs. But considering the battery-supply-constrained environment we\u2019re in, PHEVs do manage to electrify more vehicles per kWh than BEVs do. So as long as people are plugging in their PHEVs and not just using the engine, they\u2019re still a beneficial thing in terms of decarbonization.<\/p>\n

Also, PHEV sales levels have been low for years and aren\u2019t rising, whereas BEVs are. All-electric is just a more pleasurable experience, so we still expect this will result in fewer ICE engines on the road.<\/p>\n

Overall, despite these difficulties, the goals of the legislation will help to address the challenges EVs are having right now (mostly supply challenges), will encourage more environmentally and socially responsible sourcing of materials, and should apply to far more individual cars on the road than the previous legislation due to removal of the per-manufacturer cap and extension for another decade.<\/p>\n

While we\u2019ll have some growing pains with the new EV tax credit\u2019s structure in the coming months and years, the law includes some much-needed changes to the tax credit which should help the industry as a whole, along with lots of other climate spending and action to help bring emissions down and improve the US\u2019 position in the green energy economy of the future, so on balance, we\u2019re happy about the law.<\/p>\n

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