So you’re thinking about purchasing an EV or electric vehicle, and you’re wondering what’s the best time. Well, there are some new laws hitting the books that change the way there are vehicle incentives for EVs. How much money you can get back, when you can get the money back, and if there are any restrictions on getting vehicle incentives for electric vehicles based on your income or the price of the car. Let’s take a closer look at the details.
Changes in EV Incentives Starting January 1st, 2023
These laws are set to take place on January 1st, 2023, with additional changes slated for 2024. These changes may sweeten the pot even further, making it worth considering waiting a year before purchasing an electric vehicle.
Income Criteria for Incentives
One significant change is that buyers can now get up to $7,500 if they buy an electric vehicle that meets certain criteria. The income thresholds are as follows:
- Individuals with an income of $150,000 or less
- Head of household: $225,000
- Joint filers: $300,000
If you fall into the high-income or high-net-worth bracket, you may not qualify for some of these incentives. It’s crucial to consider your potential income growth in the coming years. If you anticipate earning more, it might be wise to expedite your EV purchase.
Price Cap for Eligible Vehicles
The incentive also applies to vehicles priced under $55,000 and trucks under $80,000. However, this introduces a price cap, disqualifying many high-end EVs, including certain Teslas and other manufacturers’ vehicles in the $50,000 to $60,000 range.
Geographical and Manufacturing Limitations
There are additional limitations based on where the vehicle is manufactured. Only EVs assembled in North America qualify for the credit. This rule excludes some imports, such as the Hyundai Ioniq. Moreover, the mining of raw materials for the battery pack must adhere to specific criteria to qualify.
Timing of Tax Credit: Before and After January 1st, 2023
Perhaps the most crucial aspect is the timing of the tax credit. Both before and after January 1st, 2023, you are eligible for a $7,500 tax credit. However, after January 1st, 2024, dealers can provide this money as a direct discount on your purchase. This means you get the money right away, eliminating the need to wait for your tax return.
Instant Incentives in 2024
For those on the fence about purchasing an EV and hesitant to wait for tax returns, 2024 brings good news. The incentive can be obtained instantly as a direct discount on your purchase. This is especially valuable if you’re unsure about the timing of your tax return.
For More Information
For more details on the criteria and to ensure you make an informed decision, check out our detailed article linked here. You can also visit our website, and the name is displayed on the video screen.
As the landscape of EV incentives evolves, staying informed is key to maximizing the benefits of these new laws. Happy EV shopping!