EXPLAINER 2023 tax credits for EVs will boost their appeal The Associated Press

News Summary

  • The new law also provides a smaller credit for people who buy a used EV.Certain EV brands that were eligible for a separate tax credit that began in 2010 and that will end this year may not be eligible for the new credit.
  • GM says its eligible EVs should qualify for the $3,750 credit by March, with the full credit available in 2025.Until Treasury issues its rules, though, the requirements governing where minerals and parts must be sourced will be waived.
  • But the question of which vehicles and buyers will qualify for the credits is complicated and will remain uncertain until Treasury issues the proposed rules in March.What’s known so far is that to qualify for the credit, new EVs must be made in North America.
  • Several EV models made by Kia, Hyundai and Audi, for example, won’t qualify at all because they are manufactured outside North America.The new tax credit, which lasts until 2032, is intended to make zero-emission vehicles affordable to more people.
  • Automakers have been scrambling to move more EV supply chains to the U.S.___HOW DOES THE USED-EV CREDIT WORK?Consumers can receive tax credits of up to $4,000 — or 30% of the vehicle price, whichever is less — for buying EVs that are at least two years old.
  • But because of the requirements for where batteries, minerals and parts must be manufactured, it’s likely that buyers of those vehicles would initially receive only half the tax credit, $3,750.
WASHINGTON (AP) Starting Jan. 1, many Americans will qualify for a tax credit of up to $7,500 for buying an electric vehicle. The credit, part of changes enacted in the Inflation Reduction Act, is de [+8927 chars]