Legislated by idiots?for idiots?.Unicorns and Rainbows?
What If No EVs Qualify for the EV Tax Credit? It Could Happen.
But? as currently written, the material, component and assembly requirements in the Clean Vehicle Credit will immediately reduce (by a lot) the number of qualifying electric vehicles available to consumers for purchase with the tax credit.
Here?s what I mean: there are 72 EV models currently available for purchase in the United States including battery, plug-in hybrid and fuel cell electric vehicles. Seventy percent of those EVs would immediately become ineligible when the bill passes and none would qualify for the full credit when additional sourcing requirements go into effect. Zero.
Put another way, Americans who would otherwise receive the credit today (say, the family test driving a car this weekend and on the fence about whether to make the switch to an EV) will no longer be able to take advantage of this financial incentive to purchase an EV. The $7500 credit might exist on paper, but no vehicles will qualify for this purchase incentive over the next few years. That?s going to be a major setback to our collective target of 40-50 percent electric vehicle sales by 2030.
https://www.autosinnovate.org/posts/blog/what-if-no-evs-qualify-for-the-ev-tax-credit
Buying a car and want to go electric? Inflation Reduction Act extends $7,500 tax credit ? but with price, income caps
? Among the limitations for a car to be eligible for the tax credit would be its price ? no more than $55,000 for sedans and $80,000 for SUVs and trucks.
? A new tax credit worth a maximum $4,000 for used electric vehicles would be implemented.
? Additional vehicle requirements could make it difficult for consumers to find cars that qualify for the tax credit.
Among the limitations for a car to be eligible for the tax credit would be its price ? no more than $55,000 for sedans and $80,000 for SUVs and trucks.
Another determining factor for whether a vehicle would qualify for a full or partial credit (or neither) include a requirement that the final assembly of the car would need to be in North America. Additional qualifiers include limitations on where key materials for batteries can come from and a mandate that a specified portion of battery components must be manufactured or assembled in North America.
?It?s designed to encourage domestic production in North America,? said Scott Cockerham, an attorney and partner at Orrick.
Many electric vehicles may not qualify for the credit
However, it could be difficult for cars to qualify, he said, depending on where they source their materials and where they complete the manufacturing process. The Alliance for Automotive Innovation has warned that many electric vehicles will be ineligible for the credit right off the bat.
https://www.cnbc.com/2022/08/10/inf...rce=iosappshare|com.apple.UIKit.activity.Mail