Some industry experts argue that the stricter guidelines around this tax credit will actually reduce EV sales.
This legislation will go into effect next year, and the credits will then stay in place through 2032.
Probably not as good as youd like.
Shopping for an EV? These are themost affordable electric cars in 2022.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Congress has also eliminated the 200,000 model sales cap currently in place.
As of today, Tesla, General Motors, and Toyota are all disqualified and Ford isnt far behind.
All these automakers will be back in the game starting next year.
Theres another key stipulation in that legislation: The EVs battery must have been built in North America.
Depending on who you ask, that could encourage more production here in North America.
He predicted that within a few years, no electric vehicle will qualify for the tax break.
The price cap for used EVs is $25,000, and there are income restrictions.
Individual tax filers who make more than $75,000 are ineligible.
The income cap is $150,000 and $112,500 for joint filers and heads of household, respectively.
Is Now a Good Time to Buy an Electric Vehicle?
Prices will likely fall back as we come out of supply chain shortages and rampant inflation.
What Brand of EV Do You Want?
Hoping to drive home in a Tesla, Toyota, or Chevy?
None of those automakers currently qualify for the EV tax credits because of the sales cap.
Starting in 2023, those automakers will be able to enter the program once again.
Would You Rather Buy Used?
Thats when the used EV tax credits kick in.
Can You Wait a Few Years?
When the new regulations take effect in 2023, many vehicles may suddenly become ineligible for tax credits.
Could You Really Get a New EV This Year if You Wanted?
Of course, you might stilltryto buy an electric vehicle now if you think its the right time.
Even then, EV tax credits arent refundable.
Get a refresher onhow tax credits and tax deductions work.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
