The Biden Administration signed changes for new EV Tax Credits in order to encourage North American production. So, under the new Inflation Reduction Act, qualifications for this new $7,500 Clean Vehicle Credit contain very important stipulations. Coming in the next months and years expect changes such as:

* Personal Income Cap: $150,000 for a single filing taxpayer and $300,000 for those filing jointly.

* Vehicle Price: Must be under $55K for Sedan & $80K for SUV & Trucks. THIS MAJORLY EXCLUDES MANY VEHICLES!

* Final Assembly Location: Must be in North America- Effective Immediately (unless signed contract before 8/16/2022) Check the VIN (vehicle identification number) to be certain!

* Where battery material Is sourced: 40% of key minerals for battery must be sourced in US, or places where we have a free trade deal starting in 2024

* When was EV purchased: Those with contracts in place before 8/16/2022 are exempt from new rules. Some requirements are effective immediatley, others Jan 1, 2023

* Credit can be used at Point of Sale

Does it apply to a Used Vehicle?
Max credit of $4K available. This is a deviation from the former qualifications which were established in 2008/2009 to encourage the adoption of electric cars which included:

* Manufacturers previously had a cap of 200,000.00 vehicles sold (ends this year)

* Used vehicles were’t eligible

* Amount of credits depended on size of battery capacity

* Whether the vehicle was a full EV or Hybrid. Keep an eye on more specifics that will eventually be unveiled…

Go electric ✌🏼