GreenCarReports: Inflation Reduction Act drastically cuts EV, plug-in hybrid models eligible for federal tax credit

Green Car Reports has posted, “The [US Federal] tax credit knocks out higher-priced and luxury EVs, with a cap of $80,000 for vans, SUVs, and pickups, and a cap of $55,000 for passenger cars. It also sets a maximum adjusted gross income (AGI) for those who can claim the credit, of $150,000 for single filers, $225,000 for heads of households, and $300,000 for joint filers.”

“There is an exception on the eve of the new rule, which starts as soon as Biden signs: A binding purchase contract will grandfather in the old qualification terms.”

“The tax credit is almost certainly gone for the rest of 2022 and will be back at the beginning of 2023 for a smaller group of vehicles. Some domestic-content and supply-chain rules need guidance from the Treasury Department, and automakers will shift to more U.S.-sourced batteries and components, but this won’t happen overnight—or even in a year.”

Among electric vehicles that currently qualify for the credit but are too expensive to meet the new price caps include the Genesis G80 Electrified. And among electric vehicles that would otherwise qualify by price but aren’t built in North America include Genesis GV60, Hyundai Kona Electric, Hyundai Ioniq 5, Kia EV6, Kia Niro EV. Plug-in hybrids which currently qualify on price but don’t have final assembly in the U.S. include Hyundai Tucson Plug-In Hybrid, Hyundai Santa Fe Plug-In Hybrid, Kia Niro Plug-In Hybrid and Kia Sorento Plug-In Hybrid.

Currently no Hyundai, Kia or Genesis EV qualifies both under price limits and assembly point.

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