Scientist: Inflation Bill Could Help Mitigate Global Warming
PresidentBiden's signing of the Inflation Reduction Act is changing the landscape for Americans interested in buying electric cars. The law replaces previous tax breaks for EVs with a new set of credits, depending on where the cars are assembled.
The manufacturing requirements are in effect from his August 16th when the bill was passed. Other restrictions, including strict restrictions on where batteries can be mined and assembled, will begin in 2023 and increase over the next few years. Here's what you need to know if you buy an EV.
Eligible Cars and His SUV
The Department of Energy has released a list of vehicle models likely to qualify for credit. In order to know for sure if the vehicle qualifies, the driver will have to check the VIN using his vehicle's vehicle identification number on his decoder, the agency said. .
"[S]Some models are produced in multiple locations, which vary by year and trim level for the same vehicle. To the government:
2022 model year
- BMW likely eligible for tax credit under the Inflation Reduction Act 330e and X5
- Chrysler Pacifica PHEV
- Ford F-Series
- Ford Escape PHEV and Mustang Mach E
- Ford Transit Van
- Jeep Grand Cherokee PHEV and Jeep Wrangler PHEV
- Lincoln Aviator PHEV and Corsair Plugin
- Lucid Air
- Nissan Leaf
- Rivian EDV, R1S and R1T
- Volvo S60
Likely to fit in 2023 Models:
- BMW 330e
- Mercedes EQS SUV
- Nissan Leaf
Not included are the most popular EVs in the market, which were assembled in North America but are currently ineligible for credit because the manufacturer exceeded the sales cap allowed by previous legislation.This sales cap will be lifted in 2023, when other requirements, including battery requirements, will apply.
As a result, these electric vehicles will not be eligible for credit under the new inflation law. Chevrolet Volt EVs and EUVs GMC Hummer pickups and SUVs Tesla Model 3, Model S, Model X and Model Y vehicles The agency did not specify whether Toyota-built EVs qualify for tax breaks.
What if I buy a late car?
Drivers who purchased a car before August 16th but delayed their purchase after that date, for example, do not have to worry about procurement requirements due tosupply his chain issues. to the Internal Revenue Service. As long as the buyer makes a binding commitment to buy the car, such as paying a deposit of at least 5% of the car's value, the IRS will consider purchases made before the new law took effect. To do.
Starting next year, the list of vehicles eligible for credit will change significantly to comply with the IRA's requirements for battery manufacturers. Consumers should keep an eye out for the revised list before the end of the year, according to the IRS.
Consumers will also have to be patient as vehicle credits could be disruptive in the next few years, according to clean energy professor Jesse Jenkins of Princeton University.
On theVolts podcast this week, Jenkins said, "The list of eligible vehicle models changes."
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