While many foreign companies still qualified for it, these two major American companies were left in the dust and needless to say they made one heck of a fuss about it.
The new incentive will no longer have a cap on the amount of EVs sold by any brand, in order to combat inflation in the U.S. economy, with a handful of key differences between this bill and the previous one.
Hold out on the EV tax credit
Electrek, “Last year, the US House of Representatives passed the $1.9 trillion “Build Back Better” legislation, but it has been stuck in the divided Senate ever since.” Recently, Senator Joe Manchin agreed to, including investments to help with the climate change dilemma.
The U.S. Senate has had to hold back due to Manchin’s reservations regarding dealing with climate change, but he finally approved along with Democrats that the change was needed. The original bill was altered in name to become the “Inflation Reduction Act of 2022”.
This now approved and highly anticipated bill will give back the tax credit to Tesla and GM vehicles, however, it does include some changes from the previous bill.
The new EV tax credit bill
The main point the majority seemed to agree on was removing the cap of there no longer being a tax credit available after 200,000 vehicles are sold by a company since it was, “putting automakers that were early in pushing electric vehicles at a disadvantage”.
Electrek notes more differences in the bill now than the previous one which includes some added benefits to the $7,500 tax credit being more open-ended. Instead of the tax credit being applied on taxes it is now given at the point of sale.
For a company to be eligible for the tax credit the EV most of the battery parts have to come from North America. Hopefully, this would give some much-needed work to Americans suffering from inflation and alleviate the strain on the economy.
As well as this a certain percentage of the battery’s minerals must come from countries that have a free trade agreement with the U.S.
Along with this, there are new incentives to get people buying EVs which include a tax credit of $4,000 on used EVs, electric sedans of up to $55,000 MSRP qualify, and the credit will be an option for individuals who report a gross income of $150,000 or less and $300,000 for people filing together.
On top of that zero-emission trucks, vans, and SUVs with up to $80,000 MSRPs now qualify for the tax credit.
Tesla does get their tax credit backthere are restrictions. Just like the electric sedans with the MSRP of $55,000 qualify, only some versions of the Model 3 are able to receive it, so Tesla gets no special treatment here.
Though the bill isn’t law yet and has to go through the legislative processes, this is a positive step forward in many regards.
Further your EV savings by finding the right car insurance
While you’re checking out a GM, Tesla, or another electric car for the EV tax credit, you want to make sure to check that you have the best car insurance available for the best price for your car.
But no one wants to spend their free time comparing
car insuranceplans, so thankfully there’s an app for that!
Jerryis the top car insurance app in the country. In just 45 seconds Jerry will gather quotes from 55+ providers including Geico, Progressive, Allstate, and more to show you how much you could be saving on your insurance. The average Jerry user saves over $800 a year on car insurance, so give it a try today!