Consumers of Electric Vehicles to Receive Hefty Tax Credits, and DOT Goes Electric

Americans who purchase electric vehicles from 2023 to 2032 will be eligible for tax credits of up to $7,500, thanks to last year’s Inflation Reduction Act.

This change comes courtesy of the law passed by congress called the Inflation Reduction Act of 2022. It changed the rules for this credit for vehicles purchased from 2023 to 2032.

To encourage Americans to buy “clean vehicles” that emit less carbon dioxide into the air, the US Congress approved tax credits for consumers who purchase new, plug-in electric vehicles (EV) and fuel cell electric vehicles (FCV). 

The electric vehicles that qualify consumers for tax credits must be bought for the buyers’ own use and not for resale. In addition, consumers must purchase new electric cars and plan to drive them mainly in the U.S. The adjusted gross incomes of married couples who file their taxes jointly must be at most $300,000 a year.

The Internal Revenue Service will only provide tax credits to consumers who paid less than $80,000 for vans