The U.S. will get an immediate $7,500 tax credit for electric car purchases starting next year
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发表于 2023-10-11 22:13:15
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The Internal Revenue Service said Friday that starting in January, buyers of electric vehicles can get up to $7,500 off their purchases at dealerships instead of waiting months later to file their taxes. Industry advocates say accelerating the pace of incentives will help spur adoption of the new technology.
"It's like cash on the hood," said Joel Levin, executive director of Plug In America, a nonprofit group that promotes the use of electric vehicles.
Congress has made significant changes to the federal electric vehicle tax credit in the 2022 Inflation Reduction Act to encourage car consumers to switch to more environmentally friendly vehicles. While tax breaks have boosted sales of electric cars, buyers must sort out confusing rules. The list of eligible vehicles is constantly changing, with new income limits imposed this year and further changes expected.
Consumers who want to purchase certain vehicles should do so before the end of the year. The list of eligible vehicles could shrink in 2024. That's because the IRS has yet to issue fine print on a provision in the law that excludes vehicles that use parts made in certain countries, possibly China. Regulations on where batteries are made will also become stricter in 2024.
Income limits ($150,000 for individuals and $300,000 for married couples filing jointly) also affect the decision to buy a car. If your income will exceed the limit in 2023 or 2024, you'll need to buy a car this year to qualify for the credit.
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