As part of a massive rollout of new climate, tax and health legislation, the US government is moving forward with plans to offer new tax credits to electric vehicle buyers.
Several new websites were launched on Tuesday to help identify eligible vehicles for credit. At least 31 of his new 2022 and 2023 models are eligible for the tax credit, based on data filed with the National Highway Traffic Safety Administration. First, it must be manufactured inNorth Americato qualify.
President Joe Biden signed the Democratic Party's landmark climate change and healthcare legislation into law on Tuesday. This includes a tax credit of up to $7,500 that can be used to help cover the cost of purchasing an electric vehicle.
Models included are the 2022 Ford F-Series electric pickup, BMW X5, Nissan Leaf, Chevrolet Volt, Jeep Wrangler plug-in hybrid, and all four of his Tesla models.
However, some models may exceed sticker price limits in complex laws, allowing automakers to find minerals or produce batteries that could qualify for credit. We don't know yet.
Consumers go to https://vpic.nhtsa.dot.gov/decoder/ and enter the 17-digit vehicle identification number of the EV they want to buy, and it is shipped from the United States, Canada, or México. You can check thatThe Treasury Department also published a frequently asked questions page on the provisions of the new law.
As of Tuesday, the tax credit will no longer apply to vehicles assembled outside of the United States, Canada or Mexico. However, those who signed his EV's purchase contract before Tuesday will be able to receive the credit. The rest of the electric vehicle provisions in the law will come into force on January 1.
The plan will put the US 2030 climate target within reach and ensure Americans can afford to buy electric cars, Treasury officials told reporters on a conference call on Tuesday. said it would help. Electric car.
Passage of this bill will accelerate automakers' efforts to find North American batteries and battery minerals from the US, Canada, or Mexico to ensure their EVs qualify for credit. We fought a scramble to get it.
While automakers are announcing US battery plants and seeking to secure domestic mineral supplies, a large industry group says the vast majority of EVs sold in the US today are completely Inflation Control Act.
"We are working overtime to localize our supply chain and expand production," Ford's chief government affairs officer, Chris Smith, said in a statement. .
Credit is important because an automaker doesn't want to see a competitor sell a car with his $7,500 price advantage. Especially since the credit is primarily aimed at middle-class buyers.
"The biggest obstacle to EV adoption is cost," said Cox Automotive executive her analyst Michelle Krebs. “So, in some of the markets this is for, the $7,500 difference is significant from one vehicle to another.”
To be eligible, batteries must be installed in North America using minerals mined or recycled on the continent.
And those rules will get tougher over time, and in a few years there could be no tax-deductible EVs, according to the Alliance of Automotive, the industry's leading trade group. Innovation says. At this time, the Alliance estimates that approximately 50 of the 72 electric, hydrogen or plug-in hybrid models sold in the United States do not meet the requirements.
The tax credit will go into effect next year under the $740 billion economic package Biden signed into law. For an EV buyer to be eligible for full credit, his 40% of the metal used in the vehicle's batteries must come from North America. By 2027, that required threshold will reach 80%.
If metal requirements are not met, automakers and their buyers are entitled to half of her $3,750 tax credit.
Another rule requires that half the value of batteries be manufactured or assembled in North America. Otherwise, you will lose any remaining tax credits. These requirements will also become stricter each year, eventually reaching 100% in 2029. Yet another rule requires that the EVs themselves be manufactured in North America, thereby excluding foreign-made vehicles from the tax credit.
The thinking behind this requirement is to incentivize domestic manufacturing and mining, build robust battery supply chains in North America, and reduce the industry's reliance on potentially disruptive overseas supply chains. is to reduce
However, China currently has a monopoly on the production of lithium and other minerals used in the production of EV batteries. The Democratic Republic of the Congo is also the world's leading producer of cobalt, another component of EV batteries.
The tax credit only applies to couples earning $300,000 or less or singles earning $150,000 or less. Also, trucks and his SUVs with sticker prices over $80,000 or cars over $55,000 are not eligible, and many EVs are excluded from the credit.
There is also a new $4,000 credit for used EV buyers, which could help moderate-income households transition to electricity.
The Treasury Department, which administers the tax credit, has said further guidance is coming and will be in a position to say which vehicles qualify for the credit after all provisions of the law have been considered.
