The Senate has voted to pass the Inflation Reduction Act. The main portion of the bill is the $7,500 electric vehicle tax credit, which is renewed starting in January 2023 and will last a decade – until the end of 2032.
The new credit makes quite a few changes, the largest of which is to remove that cap at the start of 2023. Now, all manufacturers have access to unlimited credits as long as they fulfill the other requirements of the bill. Also, the credit can be applied upfront at the point of sale if purchased from a dealer, rather than needing to file for it on your taxes in the following April – a welcome change.
New requirements include that the cars must be assembled in North America and that materials and “critical minerals” in the battery must come from the US or a country with a free trade agreement with the US.
