Congress giveth as well as they taketh, usually with the skill of a magician, especially since they don’t want to be caught and get reelected.
So, if you are thinking of buying an electric vehicle in 2023? You need to take note of the changes to the EV tax credit that are included in the Inflation Reduction Act.
Most changes to the law changes apply to 2023 or later. The revamped credit is slated to go through 2032. The maximum tax break remains $7,500. But the factors for figuring the credit are new. To be eligible for the full $7,500 credit, EVs put in use after 2022 and must meet a critical minerals requirements and a battery component rule. If only one factor is met, then the credit is capped at $3,750.
So, the country’s conversion may be a bit more costly and maybe slower because of these changes.