The Last of the Full EV Credits.

We understand that tax information can be complex, so it’s always a good idea to consult with your accountant to see if you qualify. But let’s break down the new guidelines for electric vehicle tax credits to give you a clearer picture.

To be eligible for a $7,500 tax credit, manufacturers of electric vehicles need to ensure that battery-critical minerals used in US-assembled vehicles are either extracted or processed domestically or in a country with a free trade agreement with the US. Recycling these minerals in North America also counts towards qualification. The goal here is to support domestic manufacturing and promote greener practices.

Currently, General Motors offers three vehicles that qualify for the $7,500 tax credit: the Cadillac Lyric, Chevy Bolt EV, and Chevy Bolt EUV. However, do note that production of the Bolt will cease on November 7th. On a brighter note, Chevrolet has three new electric vehicles on the horizon: the Chevy Blazer EV, Chevy Equinox EV, and Chevy Silverado EV. This will expand the list of eligible vehicles very soon!

Looking ahead, it’s worth mentioning that starting in 2024, EV batteries must not contain any components from foreign entities of concern. The specific list of these entities is expected to be released by the end of the year.

If you’re considering a Ford, you’ll be glad to know that the Ford Lightning is eligible for the $7,500 tax credit, and you can find these vehicles readily available at dealer lots.

Other manufacturers with qualifying vehicles include Rivian, offering the R1T pickup and R1S SUV; Tesla, with the Model 3 Performance and Model Y AWD/Long Range/Performance; and Volkswagen, with the ID.4 in all its versions: S, Pro, and AWD versions.

Here’s an interesting loophole for you: If you lease an electric vehicle, you may still be able to get the tax credit. The Inflation Reduction Act of 2022 categories leased automobiles as commercial vehicles, exempting them from certain sourcing requirements. It’s a handy option to consider!

Remember that these updated guidelines provide tax credits of up to $7,500, depending on when the vehicle is placed into service. The eligibility of an electric vehicle depends on factors like the origin of battery-critical minerals and where the battery components are manufactured or assembled.

As the EV landscape continues to evolve, we’ll be here to bring you the latest news and updates. Stay tuned for more exciting developments in the world of electric vehicles!

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