Are you thinking of buying an electric vehicle or a plug-in hybrid?
And are you looking to benefit from the $7,500 tax credit? If so, you have much to consider—thanks to the newly enacted Inflation Reduction Act.
Let’s get started.
The Electric Vehicle Credit for 2022
The maximum $7,500 credit for fully electric cars or plug-in hybrid electric vehicles that applies to both business and non-business vehicles remains in place through December 31, 2022, subject to one significant change.
The Significant Change Begins August 17, 2022
Electric vehicles purchased and placed in service after August 16, 2022, qualify for the tax credit only if they are assembled in North America.
The North American assembly requirement cuts the supply, leaving only 23 qualifying electric models; click here for the list. But note the instruction at the bottom of the list that you should verify the build location using the vehicle identification number (VIN). Some of the 23 qualifying vehicles are built in North America, but others are not; hence the need to check the build location using the VIN.
Manufacturer’s Sales Cap Remains in Place Through December 31, 2022
The credit is phased out once a manufacturer sells 200,000 electric vehicles. Many of the ... Log in to view full article.
