![]() The problem right now is that the program designed at the federal level arguably is long-term - it is guaranteed for 10 years. You can also hedge your bets that the whole system will incentivize changes to manufacturing locations and battery component sourcing: In that case, you can wait and more vehicles will be eligible - theoretically, anyway. If you’re worried that the battery restrictions will make it harder or more expensive, then you have until 2024 to make your move. So if you make a lot of money and want to buy a more expensive EV that’s assembled in the U.S., your best shot may be before the end of the year. But buyer-beware: There are lots and lots of BUT’s. There’s something of a feeding frenzy going on when it comes to EVs. (For more detailed information see links below.) The rule is designed partly to keep China and Russia out of the mix. The rules ramp up over several years to a point that in some cases no tax credit will be allowed. There will now be regulations governing where battery components come from and where the difficult-to-find minerals for them come from. The battery: Here you get to the really complicated stuff.Nor will super rich folks who make a lot of money, even if they’re buying a less expensive EV. In other words, super-expensive luxury vehicles will not qualify. There are also income limits, which are lower for used vehicles. Cost and income limits: Also starting next year – only new EVs that cost less than $55,000 or $80,000 depending on size, and used vehicles under $25,000, are eligible for tax credits.1, 2023, which makes Teslas, Bolts and Hummers eligible for the first time in a long time, as long as they and the buyer meet all the other criteria. If you had a binding contract for a 2022 or 2023 vehicle when the program started but hadn’t received it yet, you’re still OK. That provision went into effect immediately in August, knocking gobs of vehicles out of eligibility. Final vehicle assembly: Must be in North America.Notice “up to.” Leased cars are not eligible fuel cell vehicles are. Up to $4,000 for a used one starting next year – that‘s a first for the fed – but they must be purchased through a dealer. Federal tax credit: Up to $7,500 for a new car. ![]() ![]() Here are some of the main components of the new federal EV program. So figuring out when to buy – there’s a lot to consider. And in light of all kinds of factors including residual COVID supply chain problems and Russia’s invasion of Ukraine, demand for at least certain EVs far outstrips supplies. Some have already kicked in that also make it harder. Other rules also kick in then that will make getting the tax credit harder. That cap does, however, go away under the new law, but not until next year. ![]()
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