U.S. Treasury Department Releases Guidance on New EV Tax Credits Following Passage of Inflation Reduction Act
Today, President Joe Biden signed the Inflation Reduction Act into law. This legislation represents the most aggressive action addressing climate change since the start of the Biden Administration. The bill includes important changes to the electric vehicle (EV) tax credits.
The new legislation cuts the number of vehicles eligible for a tax credit by 85%-- leaving 18 model year 2022 and 3 model year 2023 vehicles that meet the standards for the tax credit. A variety of criteria, including a provision that the vehicle must be manufactured in the United States, make consumers eligible for a tax credit up to $7,500 for the purchase of a new EV.
Read the U.S. Treasury Department regulations here.