In the Market for a New Electric Vehicle? Get One Today if you Want the Most EV Credits
Due to the newly proposed legislation (Inflation Reduction Act), if you are in the market for a new electric vehicle, you may want to rush to the dealership today (August 11th)! In the proposed legislation, Congress extended the electric vehicle credit but has added new restrictions which will make qualifying for the credit more difficult.
Here is a list of the new limitations proposed for Electric Vehicles delivered in 2023:
40% of the Battery must have been made in a country in which the US has a free trade agreement.
MSRP must be under $55,000 for sedans and $80,000 for vans and SUV’s.
Modified Adjusted Gross Income must be less than $300,000 for married joint returns and $150,000 for others.
On a positive note, the $200,000 sales limitation that has kept Tesla and a few other manufacturers from qualifying for electric vehicle credit will be removed. So if you are thinking about getting one of these models, you may want to wait until next year to see if these manufacturers can meet the above qualifications.
To use the old credit, you must take delivery of the car in 2022 or have a binding contract to purchase before the bill is signed into law. The bill has already been approved by the Senate and will head to the House for a vote on Friday, August 12.
Which cars are still eligible for the old credit?
If you want to act quickly, this link contains a list of cars that are still eligible for the old credit. Please note that Tesla and some other dealers are not eligible for the old credit, but may be eligible for the new credit given they comply with the limitations above.
As always, we are here to help. Please reach out to your advisor team or email luke@humaninvesting.com if you have any questions.
