Government Electric Vehicles Inflation Reduction Act
Inflation Reduction Act Will Slow the Sale of Electric Vehicles
70% of current models won’t qualify for the $7,500 price reduction
Just when you thought EVs were on the fast track to saving the planet the government steps on the economic neck of technology to slow things down.
How — you ask? The same tactic they always use — ignorant, economy stifling, overbearing, regulations.
EV customers are going to show up at dealerships expecting to get a $7,500 price reduction for their new EV purchase only to find out that the model they like doesn’t qualify under the guidelines of the Inflation Reduction Act of 2022.
When President Biden signs this bill his goal of half the vehicles on highways to be electric or hybrid by 2030 will be in jeopardy.
What Regulations Are We Talking About?
The bill removes the $7,500 cap for a tax credit and allows the reduction to be taken at the time of purchase instead of waiting to file it on your taxes in 2023.
For manufacturers and dealers to offer the $7,500 price reduction at the time of purchase they can only build 200,000 plug-in, light vehicles, of any type or price to qualify.
After 200,000 cars are produced the credit is cut in half and then half again till the end of the year.
One half will be based on the manufacturing location of the EV and the other on the country of origin of critical metals used in the batteries — more on batteries below.
The maximum price for a car that qualifies will also be restricted to $55,000, while SUVs and pickups will be limited to $80,000.
They also must be assembled in North America, which will disqualify many models as soon as the law goes into effect.
Tesla and General Motors have entirely exhausted their eligibility so no $7,500 reduction for you.
Toyota is in the phase-out period, with Nissan and Ford expected to enter it next.