{"id":29473,"date":"2022-08-18T00:03:50","date_gmt":"2022-08-18T04:03:50","guid":{"rendered":"http:\/\/autosector.com\/?p=29473"},"modified":"2022-08-18T00:03:50","modified_gmt":"2022-08-18T04:03:50","slug":"1136859_irs-2022-ev-phev-tax-credit-american-made","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=29473","title":{"rendered":"IRS: You can still buy an EV or PHEV in 2022 and claim tax credit\u2014only if it\u2019s American-made"},"content":{"rendered":"

The revamped EV tax credit that was ushered in Tuesday when President Biden signed the Inflation Reduction Act, dramatically and immediately cuts the number of eligible EV and plug-in hybrid models<\/a>.\u00a0<\/p>\n

<\/strong>It also leaves a lot of room for interpretation on whether buyers for the rest of the 2022 calendar year might be able to claim it at all. But with some preliminary guidance issued late Tuesday by the Department of Energy<\/a> and Internal Revenue Service<\/a>, those aiming to claim the Clean Vehicle Credit, as it\u2019s now called, have some early assurance of two things:<\/p>\n

The 200,000-vehicle cap isn\u2019t lifted until 2023.<\/strong> So Tesla and GM vehicles aren\u2019t eligible again until the 2023 tax year\u2014on purchases made from January 2023 on. A Tesla Model 3 bought today is not eligible for the credit, for instance.\u00a0<\/p>\n

North American assembly is mandatory.<\/strong> The location of final assembly needs to be in North America\u2014that\u2019s the U.S., Canada, or Mexico in this case\u2014to claim it on vehicles purchased on or after August 16, 2022.\u00a0<\/p>\n

\"2022<\/p>\n

2022 Ford Mustang Mach-E<\/p>\n<\/div>\n

So the Ford Mustang Mach-E, for instance, remains eligible for the $7,500 credit, as Ford hasn\u2019t yet hit the 200,000-vehicle cap and it\u2019s made in Mexico.<\/p>\n

<\/strong>Thanks to Transition Rule language written into the rule, those who signed a binding purchase contract for an EV that qualified before August 16 will still be able to claim the credit.\u00a0<\/p>\n

<\/strong>That means some buyers of vehicles that qualify as American-made but fail to meet the new credit\u2019s price caps\u2014such as those from Rivian and Lucid\u2014likely have until January 1, 2023 buy a tax-credit-eligible vehicle.\u00a0<\/p>\n

\"2022<\/p>\n

2022 Lucid Air Grand Touring Performance<\/p>\n<\/div>\n

The stipulation on final assembly leaves a very short list of eligible plug-in vehicles. And with the application of upcoming rules on critical minerals, battery sourcing, and domestic content thresholds.\u00a0<\/p>\n

<\/strong>Because Mexico and Canada aren\u2019t the same as U.S.-made to many shoppers, we\u2019ve indicated the current country of origin. Starting with the list of North American\u2013assembled vehicles from the DOE and filtering out vehicles from GM and Tesla, here are models for which you might be able to claim the credit (with credit amounts specifically carrying over from this pre-revamp list<\/a>):<\/p>\n

<\/strong>Audi Q5 plug-in hybrid (Mexico)
BMW 330e (Mexico)
BMW X5 xDrive45e (Mexico)
Chrysler Pacifica Hybrid (Canada)
Ford Escape Plug-In Hybrid (U.S.)
Ford F-150 Lightning (U.S.)
Ford Mustang Mach-E (Mexico)
Ford E-Transit (U.S.)
Jeep Grand Cherokee 4xe (U.S.)
Jeep Wrangler 4xe (U.S.)
Lincoln Aviator Grand Touring (U.S.)
Lincoln Corsair Grand Touring (U.S.)
Lucid Air (U.S.)
Nissan Leaf (U.S.)
Rivian R1S (U.S.)
Rivian R1T (U.S.)
Volvo S60 Recharge (U.S.)<\/p>\n

\"2023<\/p>\n

2023 Mercedes-Benz EQS SUV<\/p>\n<\/div>\n

The tax credit might also potentially apply to a few deliveries of the Mercedes-Benz EQS SUV, due for U.S. production (and deliveries) before the end of the year\u2014squeaking in before price caps apply in 2023.\u00a0<\/p>\n

<\/strong>There will surely be some exceptions on the eligibility list, and the IRS notes: \u201cBecause some models are built in multiple locations, there may be vehicles on the Department of Energy list that do not meet the final assembly requirement in all circumstances.\u201d<\/p>\n

<\/strong>Some of these anomalies that you might find at the dealership likely result because of supply-chain issues. For instance, the federal government lists the BMW 330e as having final assembly in North America, while the example we drove last spring was confirmed (by VIN and window sticker) as built in Germany.\u00a0<\/p>\n

It\u2019s all in the VIN<\/strong><\/p>\n

<\/strong>To double-check, we recommend looking specifically at the VIN (the vehicle-specific identifier, found at the base of the windshield) of the vehicle you\u2019re buying\u2014and using the NHTSA\u2019s VIN decoder<\/a> to verify the assembly point. There are other ways to read the VIN, but it gets complicated<\/a>.\u00a0<\/p>\n

\"VIN<\/p>\n

VIN tag of 1995 Chevrolet Caprice, by Flickr user Ingue86<\/p>\n<\/div>\n

It\u2019s also buyer beware and, to some degree, subject to change, and the federal government is underscoring this. \u201cThe Internal Revenue Service and the Department of the Treasury will post information and request comments from the public on various existing and new tax credit incentives in the coming weeks and months,\u201d the IRS noted.\u00a0<\/p>\n

<\/strong>The past day\u2019s additional news brings some peace of mind, however. If you choose a vehicle that you can document had final assembly in the U.S., a model that previously made the cut, and one from a manufacturer that hasn\u2019t yet reached its 200,000-vehicle cap, it appears you\u2019ll be able to take advantage of this important perk for tax year 2022 after all.<\/p>\n","protected":false},"excerpt":{"rendered":"

The revamped EV tax credit that was ushered in Tuesday when President Biden signed the Inflation Reduction Act, dramatically and immediately cuts the number of eligible EV and plug-in hybrid models.\u00a0 It also leaves a lot of room for interpretation on whether buyers for the rest of the 2022 calendar year might be able to […]<\/p>\n","protected":false},"author":1,"featured_media":29474,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-29473","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/29473","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29473"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/29473\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/29474"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29473"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}