A new EV law from the Biden administration, however, is intending to change that. Thanks to the Inflation Reduction Act which was signed into law over the summer, Americans can now only claim the $7,500 electric vehicle tax credit on cars built in the U.S.
Read on with the car ownership experts at
super appJerry to learn more about this new law and what it means for foreign automakers.
More automakers are opening U.S. factories
Hyundai’s luxury subdivision Genesis has also been racking up awards and is in the midst of producing its Electrified GV70 SUV.
Hyundai manufactures most of its cars out of the world’s largest automotive assembly complex Ulsan, South Korea, but production for the GV70 will actually begin later this year at a plant in Alabama. For the Ioniq 5, Hyundai is building a new plant in Georgia.
European brands, including Volvo, Volkswagen, and Mercedes-Benz are in a similar predicament. Volvo is planning an American assembly plant for its flagship EX90 SUV, while Volkswagen moved construction of the ID.4 from Germany to Tennessee.
Mercedes-Benz launched the EQS electric sedan from its home base in Germany, but the American-market equivalent—also called the EQS—was made in Alabama.
New EV law intends to strengthen domestic market
Because of the new prerequisites for tax credit qualification, both Hyundai Motor Co. and its affiliate Kia Corp are excluded in the short term.
As automakers are scrambling to ramp up U.S.-based production, the new law has also been met with some pushback from trade partners.
The new EV law also comes with a few other caveats.
A $55,000 price cap rules out both the Mercedes EQS as well as most Tesla models, which in spite of being home-grown, actually haven’t
qualified for the federal tax creditin years. For Tesla, only a few versions of the Model 3 will qualify.
How to save money on a new EV
Incentives like the federal tax credit help to close the gap between gas-powered and electric cars, and driving more production to the U.S. will likely strengthen interest in EVs as well.
If you’re thinking about buying an electric car, you can save even more money when you sign up with the Jerry app. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and can even help you cancel your old policy.
And to ensure you always have the lowest rate,
Jerrywill send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price. The average Jerry user saves over $800 a year on car insurance.