Gear Patrol website has posted, “As July wound to a close, Democrats in Congress reached a surprise deal with foot-dragging Senator Joe Manchin on a massive bill called the Inflation Reduction Act of 2022 which aims to, among other things, help fight climate change. If it passes, the act will make some noteworthy changes to the $7,500 federal EV tax credit.”
“The changes could help manufacturers like Tesla, Toyota and GM, who have seen their tax credits expire under the current regime. But the new rules could also hurt other manufacturers — and be a mixed bag for potential EV buyers.”
- The plan removes the 200,000 vehicle limit for manufacturers. So Tesla, Toyota and GM — which have all sold more than 200K EVs and PHEVs — would not have their credits phased out as they would or have under the current system.
- EVs would need to be built in North America to be eligible for the tax credit.
- Individuals with an income above $150,000 or $300,000 household would not be eligible.
- Only cars below $55,000 or trucks/SUVs/vans below $80,000 would be eligible
- Discounts can occur at the time of sale, rather than be deducted against your tax bill the following year.
Vehicles That Would Not Have a Federal Tax Credit Under the Inflation Reduction Act:
- Nissan Ariya
- GMC Hummer EV SUT
- GMC Hummer EV SUV
- Porsche Taycan
- Porsche Cayenne E-Hybrid
- Land Rover Range Rover PHEV
- Subaru Solterra
- Kia EV6
- Hyundai Ioniq 5
- Volvo C40 Recharge
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