To qualify for the first $3,750, at least 50 percent of a vehicle’s battery components must be produced or assembled in North America. Vehicles must be manufactured in North America and have an MSRP below $80,000 for an SUV or $55,000 for a sedan, wagon, or hatchback.īeginning April 18, the full tax credit will be divided into two parts.
The provisions of the act went into effect in phases. Designed to address climate change, healthcare, and taxes, the legislation also modifies how tax credits for certain new EV purchases are calculated.
The changes are part of the Inflation Reduction Act of 2022.
