The US inflation reduction act: What we know so far
This situation is fluid and is being voted on by the House of Representatives on Friday, August 12, 2022.
Updates will be provided.
The US Senate recently passed a new inflation reduction deal that could make the decision to purchase an EV a lot easier.
It calls for an expansion of the soon-expiring $7,500 new EV credit and a newly introduced used EV credit.
The used EV credit, which is worth up to $4,000, will be available for anyone who buys a used electric vehicle.
In addition, automakers will receive grants and tax credits to help them retool their factories to build more green cars.
At a high level, this bill will change the landscape for the better when it comes to EV purchasing:
Federal tax credit for EVs maintained at $7,500
A new federal tax credit of $4,000 for used EVs
The tax credit cap on vehicles sold was eliminated. GM and Tesla are once again eligible.
The language in the legislation suggests that the credit would be given at the point of purchase instead of on taxes.
To receive maximum credit, the EV must be built in North America, the majority of battery components must originate from North America, and a certain proportion of the minerals used in its manufacture must come from countries with free trade pacts with the US.
Non-sedan EVs up $80,000 qualify.
Electric sedans priced up to $55,000 qualify.
Families earning up to $300,000 in adjusted gross income each year would be eligible to receive the full credit. $150,000 per individual is the cut off.
Further documentation provided by the US Senate: