With the implementation of the Inflation Reduction Act, congress modified the regulations governing these rebates, leading to the creation of these additional incentives.
Electric Vehicle New Rebates In 2023
January 1, electric vehicles have new rebates for owners, before the passing of the law, federal rebates for EVs were very straightforward. Customers who purchased one of the first 200,000 electric or plug-in hybrid vehicles that a manufacturer produced, may claim up to $7,500.
According to Market Watch, the credit would gradually end once all 200,000 had been sold and General Motors, Toyota, and Tesla are only allowed to exceed the cap. The new regulations do away with this scale cap and replace it with considerations for customers’ income and the pricing limits
The New Rule
The maximum refund of $7,500 is only available to those who report adjusted gross incomes of less than $150,000. The limit was raised to $300,000 for joint filers and $225,000 for head-of-household filers. Moreover, If a person’s van, sport utility vehicle, or pickup truck costs more than $80,000, they are not eligible for the tax reduction. The top price for the other automobiles is $55,000.
Furthermore, particular models from Tesla and General Motors are not eligible because of higher prices for certain trucks, vans, and SUVs. The limits apply where the car was manufactured and the sourcing of battery and other vehicle components. Consumers will only be eligible for a larger tax credit if they purchased an American-made vehicle, according to the U.SSun.