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The Biden administration recently signed into law the Inflation Reduction Act of 2022 which includes more tax rebates for purchasing electric vehicles. The exact amount of the rebate will vary from one make and model to another depending on the size (capacity) of the battery. Vehicles that quality must also be assembled in North America.
Qualifying EVs must be driven by an electric motor with a battery that has at least four kilowatt-hours (kWh) of capacity. The vehicle must also be a plug-in EV that uses an external energy source to recharge the battery. Vehicles that qualify for the tax rebate must also weigh no more than 14,000 pounds (Gross Vehicle Weight or GVW).
The tax credit may range from $2,500 up to a maximum of $7,500 based on the vehicle battery capacity and the vehicle's gross weight rating.
If you are considering buying an EV, don't delay because there's a catch. The EV tax credit will begin to phase out for any vehicle manufacturer once they have built and sold a minimum of 200,000 EVs. Consequently, Tesla does NOT quality for any of the new tax credits because they have already exceeded 200,000 EV sales in the U.S.
For a list of Electric Vehicles that are eligible for the new tax rebates, Click Here
For a list of the rebate amounts for qualifying Electric Vehicles, that are eligible for the new tax rebates, Click Here
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