Before we move any further, we need to know exactly what the Inflation Reduction Actactually is. It was a bill that was signed earlier in August by President Joe Biden, it seeks to shape the future of American economy in order to help the working class. One of the main provisions that is related to this topic is the tax breaks that people will get for making eco-friendly purchases.
This obviously includes electric vehicles, but not all of them will be part of this package for one specific reason. Folks who buy an EV, plug-in hybrid or a hydrogen fuel-cell vehicle will benefit from a tax credit that will be worth up to $7,500 depending on the type of battery the car has.
Which vehicles apply for this tax credit?
There is an important number of cars that do apply for this tax credit under the Inflation Reduction act, most of them are American made. But there is also a number of cars that do not apply for this tax credit for one specific reason. These cars that do not apply are the ones that have gone over the sales cap that is currently allowed under a previous law.
This means that no Tesla vehicle is eligible for this tax break, not is it the Chevrolet Bolt EV and EUV nor the GMC Hummer PIckup and SUV. Toyota EVs weren’t specified by the agency, meaning they are currently in a sort of limbo when it comes to this tax break. We encourage you to ask the company, they should already have that information available to the public.
New concept cars such as de DeLorean EVs are still uneligible for the tax break but they will be evaluated as soon as they hit the American market. This goes also for any other concept EV that has already been revealed or announced to hit the market sometime in the next five years.
2022 models that will probably qualify for a tax credit under the Inflation Reduction Act:
- BMW 330e and X5
- Chrysler Pacifica PHEV
- Ford F Series
- Ford Escape PHEV and Mustang MACH E
- Ford Transit Van
- Jeep Grand Cherokee PHEV and Jeep Wrangler PHEV
- Lincoln Aviator PHEV and Corsair Plug-in
- Lucid Air
- Nissan Leaf
- Rivian EDV, R1S and R1T
- Volvo S60
2023 models that will probably qualify:
- BMW 330e
- Mercedes EQS SUV
- Nissan Leaf