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IRS lays out how to get tax credits for purchasing electric vehicles

Biz New Car Sales
Posted at 12:02 PM, Aug 18, 2022
and last updated 2022-08-18 12:02:08-04

The Inflation Reduction Act that President Joe Biden signed into law this week has new provisions for Americans looking to obtain a tax credit for purchasing an electric vehicle.

While there has been a $7,500 credit for electric vehicles, the credits were capped at 200,000 per manufacturer. The new law eliminates that limit.

A number of vehicles, notably all Tesla and Chevrolet Bolt models, met their caps in 2022.

However not all electric vehicles will be eligible for the credit. Only those vehicles that had their final assembly in North America are eligible.

Since some vehicles are assembled in multiple places, the Internal Revenue Service said customers should check to see if the vehicle they are buying is eligible for the credit.

The government also said that if customers were in a written contract before Tuesday for a car previously eligible for a credit, the new made-in-North America requirement is not enforced.

The new law does put the income limit at $150,000 for a single filer or $300,000 for those filing jointly to be eligible for the credit.