Extending tax credits for electric vehicles made it into the Inflation Reduction Act of 2022. The Clean Electric Vehicle Tax Credit is a federal tax incentive program that was created to encourage the purchase of US manufactured electric vehicles. This program offers up to $7,500 for the purchase of a new EV from companies like Tesla, GM and Ford. The credit is available for cars purchased in 2022 and was set to expire on December 31st, 2022. This new bill keeps these credits into effect through 2030.
It is important to note that the credit can only be used for cars purchased from US manufacturers, so it won’t apply if you buy an EV from overseas. This credit is designed to help make electric vehicles more affordable and accessible to more people in order to reduce our dependence on fossil fuels. The tax credits will continue at their current levels, up to $4,000 for a used electric vehicle and $7,500 for a new one. That would also apply to vehicles whose manufacturers weren’t eligible for the old EV credit, like Tesla and General Motors. Millions of people would qualify for these credits. Couples who earn less than $300,000 a year or individuals who earn not more than $150,000 would be eligible. The new EV credits will begin taking effect next year, 2023 through 2030.