Inflation Reduction Act: Why Isn’t My Car On The Clean Vehicle Credit List?
President Joe Biden signed the Inflation Reduction Act into law on Aug. 16, sweeping legislation which addresses climate, energy and healthcare issues. One of the provisions of the act is to provide tax credits to those who purchase eligible electric vehicles (EVs).
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The Department of Energy explained on its website that the act amends the “qualified plug-in electric drive motor vehicle credit” — which will now be known as the “clean vehicle credit” — and adds a new requirement for final assembly to be performed in North America that took effect on Aug. 16, 2022.
The Internal Revenue Service (IRS) detailed that consumers can verify whether an EV meets the final assembly requirement by searching the vehicle identification number (VIN) of the vehicle on the VIN decoder website via the National Highway Traffic Safety Administration (NHTSA).
The act extends $7,500 in tax credits to EV owners but puts a cap on claimant salaries. For joint returns that cap would be $150,000, for head of household it is $112,500, and for a single taxpayer it is $75,000, according to the text of the bill. It also contains incentives concerning the purchase of used electric vehicles. As of Jan. 1, EV purchasers can receive a $4,000 credit. However, the sale price of the vehicle can’t exceed $25,000, according to the text of the bill.
Which Cars Are Eligible for the Clean Vehicle Credit?
The Energy Department has compiled a list of the cars generally eligible for the clean vehicle credit, noting that as “vehicle manufacturers continue to submit the applicable vehicle identification information to the relevant government agencies, this list will be updated as more information becomes available.” That list follows.
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Note that certain models have reached their cap limit of 200,000 EV credits used, and as marked, these models are not currently eligible to claim the clean vehicle credit as a result.
- Audi Q5.
- BMW 330e.
- BMW x5.
- Chevrolet Bolt EUV (manufacturer sales cap met).
- Chevrolet Bolt EV (manufacturer sales cap met).
- Chrysler Pacifica PHEV.
- Ford Escape PHEV.
- Ford F Series.
- Ford Mustang MACH E.
- Ford Transit Van.
- GMC Hummer Pickup (manufacturer sales cap met).
- GMC Hummer SUV (manufacturer sales cap met).
- Jeep Grand Cherokee PHEV.
- Jeep Wrangler PHEV.
- Lincoln Aviator PHEV.
- Lincoln Corsair Plug-in.
- Lucid Air.
- Nissan Leaf.
- Rivian EDV.
- Rivian R1S.
- Rivian R1T.
- Tesla Model 3 (manufacturer sales cap met).
- Tesla Model S (manufacturer sales cap met).
- Tesla Model X (manufacturer sales cap met).
- Tesla Model Y (manufacturer sales cap met).
- Volvo S60.
- BMW 330e.
- Chevrolet Bolt (manufacturer sales cap met).
- Cadillac Lyriq (manufacturer sales cap met).
- Mercedes EQS SUV.
- Nissan Leaf.
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