July 28, 2022 – A Senate Democrat deal between Majority Leader Chuck Schumer and West Virginia Senator Joe Manchin includes a new $4,000 tax credit for used electric vehicles and the extension of the existing $7,500 credit for new EVs.
Automakers will be able to continue offering the $7,500 credit for the purchase of new clean vehicles (or 30 percent of the price, whichever is less — the same goes with the $4,000 credit for used EVs).
However, there are a few conditions that companies need to meet. Automakers will need to build cars with minerals that are extracted or processed in a country the U.S. has a free trade agreement with, and the cars must have a battery pack that includes a large percentage of components that were made or assembled in North America.
