IRS Releases Eligibility Rules for EV Tax Credits
The Internal Revenue Service (IRS) released rules this week for eligibility for the revamped electric vehicle (EV) tax credit. This follows the passage of the Inflation Reduction Act (IRA) which was signed into law by President Joe Biden in August.
The Inflation Reduction Act (IRA) re-ups the $7,500 consumer tax credit for EVs, but adds a variety of additional requirements for qualification. This includes a requirement that vehicles must be manufactured in the United States.
The ruling from the IRS specifies that automakers will have to submit periodic reports to the agency to show compliance with the Made in America rules. Additionally, consumers purchasing EVs will have to submit similar reports in order to claim the tax credit.
The IRS will continue to release rules regarding the Inflation Reduction Act EV provisions. Read the current rule here.