"The most immediate effect of the Inflation Reduction Act would be a ban on tax credits for vehicles assembled outside North America. That would mean about 70% of the 72 current EV and plug-in hybrids on the U.S. market would no longer be eligible, said the Alliance for Automotive Innovation, which warned the change 'will surprise and disappoint customers in the market for a new vehicle' and 'jeopardize' EV sales goals."
"New restrictions on battery sourcing and critical minerals, along with price caps and income caps, take effect on Jan. 1, which will potentially make all current EVs ineligible for the full $7,500 credit."
"U.S. electric vehicle market leader Tesla and General Motors Co (GM.N) already sell their EVs without a federal tax credit, because they hit the 200,000 vehicle cap under the current law.
Tesla and GM may not become eligible to offer tax credits under the new law until Jan. 1. And even then, it is not clear which models - if any - will get the full $7,500 by meeting requirements that 40% of battery minerals come only from North America, or countries with which the United States has free trade agreements."
https://www.reuters.com/business/autos-transportation/automakers-scramble-decode-new-us-ev-tax-credits-2022-08-12/ [/color]
In summary...
- 70% of the current EV models are ineligible since they don't meet the domestic assembly requirements.
- Potentially all current EV will be ineligible for the full credit based on the sources of materials used.
- Industry EV leaders like GM and Tesla are ineligible since they already sell too many EV's.
So 7 out of the possible 10 models that you might want to buy are out of the picture. Potentially all could be out of the picture because they don't use the government's qualified materials. If you want one for the credit, you have to buy one from a company that is lower on the totem pole for industry.
BuckyB93 wrote:
