The Biden Administration’s Inflation Reduction Act significantly raised the bar for federal tax credits for electric vehicles, making it more difficult to get the full $7,500 tax credit.
As reported by Road & Track magazine, the updated regulations have new requirements related to battery sourcing, giving preference to USA-made batteries.
Under the guidelines, the $7,500 tax credit applies to electric vehicles and plug-in hybrids manufactured in the United States. Additionally, the vehicles must have a purchase price below $55,000 for cars and $80,000 for sport utility vehicles.
Now, an electric vehicle must contain a certain percentage of U.S.-sourced battery materials to qualify for the full $7,500 tax credit. This provision means a substantial reduction in the number of eligible vehicles. Sourcing of battery materials is tricky, because the Biden Administration has taken a decidedly anti-mining stance through the Department of Interior Bureau of Land Management.
One of the most notable impacts will be to entry-level versions of the Rivian R1T and R1S, which will no longer qualify for any sort of credit.
Previously, the Audi Q5 plug-in, BMW 3-Series and X5 plug-ins, Genesis Electrified GV70, Nissan Leaf, Volkswagen ID.4, and Volvo S60 plug-in all qualified for some level of tax credit, as these models were manufactured in the United States. However, the recent changes have struck these vehicles from the eligibility list.
The updated regulations have also impacted the tax credit amount for other EV models. The Ford E-Transit, Mustang Mach-E, and Jeep’s plug-in hybrid Wrangler and Grand Cherokee 4XE models, which previously received a $7,500 tax credit, will now only qualify for a credit of $3,750. The tax credit for the Tesla Model 3 has been halved, though all other versions of the Model 3 and all Model Y variants remain eligible for the full $7,500 credit.
General Motors, formerly owned by the federal government, has fared better under the new regulations. All its EVs priced under $80,000 will still qualify for the full $7,500 tax credit, including the Chevrolet Bolt, Blazer, Equinox EV, Silverado EV, and Cadillac Lyriq.
Read more details at Road & Track Magazine.
That’s the Dirty Biden game. Promise everyone who buys into the Climate Clown business a piece of the action, but after they commit, only the homeless get a real discount….. or, a free new EV. Welcome to Biden Communism 101……..
Bait and switch, democrat style.
Do as we want and we’ll reward you- right up until we don’t.
Is this one of those tax credits where they send you a check for that amount? Nothing to do with taxes at all.
No, it is a fully refundable credit claimed when one files their tax return.
Fully refundable means that even if you owe zero in taxes, you get the credit amount. Just like the child tax credits.
No, you get up to a $7500 rebate on your taxes. You don’t get a check.
It’d be interesting to see just how many of our federal politician’s own stock in any of these US manufacturing companies of EV’s and their associated parts.
It’s the classic tyrannical pattern of painting themselves into tighter and tighter corners from which there is no escape. They’ll be standing there wondering what to do next when the storm outside flattens the house with them in it.
That’s why we don’t have a straight consumption tax because this way they can pick winners and losers.
Of course. Leave it to the guy with the crack and porn addicted son who never seems to have ever done an honest days work in his life to lead us into the bright and sunny future of electric cars. Its going to be so much fun to sit on the side of the road with a dead battery as Joey and Hunter go speeding past in his shiny green corvette with the giggling prostitutes on their lap heading to the ice cream store.
Electricity will be so cheap because it can be plugged into during the next lightning storm so it doesnt matter if we get a tax credit or not. Its as simple as that….Right Joe? And the air will be so clean untill the next massive nuclear eruption which Joe is working on as long as we keep paying our taxes.
If the EV is so economical, why are we handing out Tax Rebates?
If the EV is so ethical, why are we handing out Tax Rebates?
If the EV is so effective, why are we handing out Tax Rebates?
Also, what will replace the Taxes associated with the combustion engine vehicle and how might that effect your pocket book and/or your lifestyle???
In addition to tax rebates, EVs are not being required to pay for highway maintenance.
EVs take up space on the road system and wear out road surfaces, but pay no fuel taxes.
EV registration fees should be quite a bit higher than gasoline/diesel vehicles to make up for this shortfall.
Of course, the EV drivers believe that they should be able to have free use of the public road system because they are ‘better’ than the rest of us. And yes, the EV lobbies’ argument against a special EV tax is really that childlike. Go read it.
It’s not like there’s a long line in Alaska to buy an EV. I recently rented a Tesla and I can tell you that I wouldn’t even begin thinking about purchasing one. It was too much of a hassle to go and spend a half an hour or more at a charging center. I might have felt differently if they had thrown in the home charger which is a little more than a trickle charger.
Actually there is. We had to wait months to get our EV and as soon as they arrive (actually, before they arrive), they’re sold on the spot. The demand is there for sure.
That’s pretty surprising. I wonder how they hold up to Alaskan Winters?
My thinking was unless you just going to use it to go down and grab a newspaper or whatever around town, the distance between cities up there might be a distraction.
The battery performance is really bad in the cold and when charging you might light up on fire.
Wrong and wrong. My Bolt does very well in the winter and I think I only lost about 5-10% of range and then only when it got really cold. Also, battery fires are no longer a concern as that issue was addressed by Chevy last year.
I have talked to 5 people with rv and they all say the battery performance drops with cold weather. You must have a super battery that never runs out. There are still battery fires and they have been reported by the media. Wake up cman life is not Rosetta because you have a rv that won’t burn up and run out of power.
Did you not see my above post where I stated that my battery range does indeed drop by as much as 10% in the winter? Since I only use it as a commuter vehicle around town or for trips to say Girdwood or Whittier. Since Chevy worked out the issue with their batteries, there have been no fires in the Bolt that I’m aware of. The bigger question is why do you care? Don’t want an EV, then don’t get one. Problem solved. All I can tell you is that my car, for what I bought it for, has been great and I’ve experienced no issues with the vehicle. It’s an amazing piece of engineering IMO.
He is not a liscensed financial advisor though is he. Would you pay him for financial advice for your family? Furthermore, his personal wealth is three or four lavish, private upscale mansion homes (that we know of in the US). I’d be more likely inclined to take financial advice from President Donald J Trump.
I’ve been driving my Chevy Bolt EUV for a couple of years and love it. It’s a great little commuter car and does everything I need it to do.
Sissy car for commies who rely on coal power to charge their EV. Climate Clown denier.
Is that supposed to be an actual retort? That’s the best you got? The dialectic is not your strong suit for sure.
Let’s see…commuter around Anchorage, trips to Girdwood and Whittier…in a Chevy Bolt.
Just saying…if it walks like a duck and quacks like a duck…well, then, it usually at least tastes like duck.
I’m guessing, just purely a guess with no basis in fact but healthy with good conjecture, that you’re someone who moved to Anchorage years ago under the mistaken notion that Anchorage is Alaskan.
I moved to Fairbanks in 1988 to go to college. I lived there for 17 years, then moved to Seward in 2005 and settled in Anchorage in 2007. Not sure what your duck analogy is supposed to be but I’m assuming you mean it as some sort of insult? Do you have some problem with the fact that I chose to spend my hard earned money on an EV? Does that hurt or offend you in some way princess?
Yes we don’t have coal power in Juneau. We use hydroelectric. You use coal power up there? Yes your right your not a sissy if you drive around in a big truck preferably a diesel those make you taller I hear as well.
Im sticking with Toyota regardless. American car manufacturers simply suck!
Unless you’re driving a unique Toyota or a very old one, look in the door panel…you’ll see that your Toyota is made by Americans in America.
Sounds like American manufacturing to me. Especially since many Americans like me hold shares in Toyota.
This is discrimination as we are punished for not buying the Biden brand. Folks we are losing our freedoms every day with this government. They just keep pushing and pushing us in a corner. People have had enough of government overreach and control. This is supposed to be a free and open country. We need a major reset of the government not the world.
Nobody is forcing you to buy an EV. There are still a lot of ICE vehicles for you to buy if you so choose.
I did not say anybody was forced. What I said is we are given an ultimatum buy electric or pay the penalty. When we are told what and how to buy government approved items that’s control not freedom. Read what I said again cman
‘Nobody is forcing you’ – but the end goal is taking away all alternative choices in the near future.
Federal and blue state governments are working overtime to restrict gasoline engines that auto manufacturers can bring to market, while directly subsidizing EVs with tax credits and allowing them to freeload on highways paid for with gasoline taxes.
The next move in the USA is to ban ICE vehicles from large cities – which they are already doing in major European cities such as London. Its called ‘ULEZ’, where citizens are forced to buy EV vehicles in an ever expanding zone – or they pay a large daily fine that amounts to several hundred GB pounds a month. This affects well over 10 million people in London. EVs sales are brisk when you ban all the alternatives, right?
But ‘nobody is forcing’ them. Left wing garbage talking points designed to mislead, and should be recognized as such.
Remember that just because you’re paranoid doesn’t mean that they aren’t out to get you. Keep your foil hat handy comrade.
I suggest you study the concept of social engineering and the historical uses of the market by government entities to modify behavior.
No, the duck comment was not meant as an insult. Whether it touched a nerve, well, that’s on you. No intent on my part to offend, but no hard concern to avoid it either.
It was a generous attempt to assist you in understanding how your comments are perceived. Us poor common folk only know what you type.
Look at it objectively, right or wrong, in your comments you state you drive a Chevy Bolt. Fine.
Then you state you use it to drive around Anchorage and to Girdwood and Whittier. Okay, great.
Then you state you’re unconcerned about driving it up the highways, because you don’t. Hmmm, well, everyone’s entitled to feel however which way they feel.
You then proffer an “Alaska CV” that suggests you’ve spent these past thirty-five years of your Alaska time in the orbit of the Seward Highway. Hopefully that’s just an incomplete editorial.
However, if you truly do orbit Southcentral Alaska, I suggest you expand your world and open your mind some. The good people of the Interior and points beyond matter also even if they don’t live in the equivalent of a Denver suburb called the Anchorage bowl.
Quiet-Kat … Fat Tire Bike would probably be a good candidate for this type of program. Too bad it’s not eligible!
Its not about accomplishing a ‘goal’, and never was. Current leftist government policy hinges around punishing their enemies, in this case, Americans in rural areas who rely on traditional vehicles.
Think about it. Biden was doing everything possible to force COVID vaccines on the American citizenry.
But what did Biden use as leverage? Our jobs, careers and small businesses.
But did he ever threaten to restrict welfare payments to boost vaccination numbers?
Of course not – because that would have afflicted too many minorities, too many dependents.
Employed people were targeted because Biden knew he was striking at (and impoverishing) the largely White middle class.
We have to recognize that politics today is about rewarding your friends and punishing your enemies, and has very little to do with ‘smart policy’.
I think this is a really positive move. We don’t need to be increasing debt by giving a rebate to people for buying a certain car. Maybe somebody realized they should just let the market do it’s thing.
Cutting tax credits on electric vehicles is a sure fire way to entice 50% of the drivers to purchase zero emission vehicles by 2030. Don’t make me laugh.
“These steps will help the United States meet President Biden’s ambitious goals to confront the climate crisis, by building a national network of 500,000 electric vehicle chargers along America’s highways and in our communities and have EVs make up at least 50% of new car sales by 2030, all while advancing an industrial strategy to continue to build-out the domestic EV and EV charging industry. ”
Good luck finding plentiful and working Level 3* charging stations with that BOLT and any other electric vehicle in order to drive to Fairbanks from Anchorage (Parks or Richardson Highways) during sub-zero weather in December/January. *Level 3 Charging: 400-Volt to 900-Volt (DC Fast Charge & Supercharging)
A Level 3 charger wouldn’t impart any advantages to my Bolt as it has a limited charge rate but since I have a Level 2 charger at my house, I’m not concerned with what is or is not available on the highways.
So you moved to Alaska to stay in the Anchorage bowl?
Why didn’t you just move to Cleveland?
Seriously, up the Richardson and up the Parks, Steese, and Dalton is where real Alaska is. Alaska begins north of Talkeetna and also west of Homer.
If you’re limiting yourself to the Valley, Girdwood, and Anchorage, in all seriousness, why not move to the Twin Cities or Denver?
You do realize that Anchorage is actually in Alaska, right? Do you even have a point?
Slap a cold EV battery with a fast charge, what could go wrong?
According to cman nothing. But wait he is an expert on electricity. He is probably the one I pass on the highway.
In 2016 one of Hunter Biden’s companies made a deal to sell an American company’s cobalt mine in Congo, Africa to a Chinese company. Cobalt is used to make electric vehicle batteries and the deal was worth 2.65 billion dollars. How was he in a position to do that? His corrupt father was vice-president.
The price of the EV looks like a big leap for a retired person. $40,000 to over $50,000 is a large price to pay. And you should see what they have planned in the lower 48 to get power to California. Ultra-large wind farms that will destroy wildlife and farms and wilderness areas are planned for states like Montana. Alaska is the last refuge of the free. Enjoy it while you can. Their wind farms that they are building off the east coast of the US are already killing whales and other fish. Some environmentalists!
Thank goodness we still have oil, which has never killed any wildlife or harmed the environment in any way, right?
Now you’re really out to lunch. How many birds are killed from wind farms bright boy.