![]() The bill, which was passed by the Senate and the House, was signed into law by President Biden earlier today.Ī CR survey shows that more than half of car buyers would be more likely to purchase an EV if a tax credit brought down the price. “Our research shows that a growing number of consumers are interested in getting electric vehicles, but many have questions about costs and charging, and this bill would help lower some of those barriers.” ![]() “This bill has enormous potential to be a game-changer for consumers and clean transportation,” she says. ![]() “It’s good that it’s focused on building a base of processing and manufacturing here, but at the end of the day it’s going to be really complex to implement and explain to consumers," says Brett Smith, technology director at the Center for Automotive Research.Īs far as used vehicles are concerned, the CBO estimates 24,750 used EVs will qualify in 2023, and about the same number in 2024.ĭespite this initial confusion, the bill is a major achievement overall, says Quinta Warren, PhD, associate director of sustainability policy for Consumer Reports. Those goals call for half of all new light-duty cars sold in 2030-accounting for millions of vehicles-to be zero-emission vehicles. is to meet its greenhouse gas reduction targets. in 2021-a number that must grow if the U.S. That number jumps to about 60,100 EVs in 2024.įor comparison, about 630,000 battery-electric and plug-in hybrid vehicles were sold in the U.S. “The EV tax credit requirements will make most vehicles immediately ineligible for the incentive,” wrote John Bozzella, president and CEO of the Alliance for Automotive Innovation, an auto industry trade group.Ī Congressional Budget Office analysis shows that the bill budgets for $85 million in new EV tax credits for the 2023 fiscal year, which only translates to about 11,000 new vehicles sold with full $7,500 credits. This restriction doesn’t apply to used vehicles. An analysis this year of the EV supply chain from the International Energy Agency shows that the vast majority of minerals, components, and battery cells are currently sourced from China. Starting in 2024, if any minerals or components are sourced from “foreign entities of concern,” including China or Russia, the vehicle will not qualify for any tax credit. has a free trade agreement with or recycled in North America, and with battery components sourced from North America. The bill also immediately restricts the full tax credit on new EVs to vehicles with battery minerals sourced from countries that the U.S. Eliminates tax credits for vehicles not assembled in North America, including the BMW i4, Hyundai Ioniq 5, Kia EV6, and Toyota bZ4X.Does away with today’s tax credits for pricey EVs-such as the Hummer EV, Lucid Air, and Tesla Model S and Model X.Takes away the 200,000 vehicle cap on tax credits that made EVs and plug-in hybrids from Tesla, GM, and Toyota ineligible.Offers a new tax credit of up to $4,000 on used EVs put into service after Dec.But if you’re considering a used EV, it might be worth waiting," says Jake Fisher, senior director of Consumer Reports’ Auto Test Center.Ī requirement that vehicles be made in North America in order to qualify for a tax credit went into effect today as soon as President Biden signed the law, while some other rules don’t apply until after regulations are finalized. "If you’re interested in an EV or a plug-in hybrid and it qualifies for a tax credit today, don’t wait, because it might not qualify next year. To apply for a CVRP rebate and for additional eligibility information visit the CVRP official program page: The Center for Sustainable Energy (CSE) administers CVRP.But due to numerous new rules about where new EVs must be built and their batteries sourced, automakers argue that too few vehicles qualify, and EV advocates are concerned that the requirements may make it difficult for consumers to find a vehicle that qualifies for the credits. In the meantime, many shoppers who are in the market for an EV right now are waiting for more details to be finalized so they can find out which vehicles are eligible for a credit, and how much that credit could be. Rebates are available to California residents that meet income requirements and purchase or lease an eligible vehicle. CVRP offers vehicle rebates on a first-come, first-served basis and helps get the cleanest vehicles on the road in California by providing consumer rebates to reduce the initial cost of advanced technologies. Get up to $7,500 to purchase or lease a new plug-in hybrid electric vehicle (PHEV), battery electric vehicle (BEV), or a fuel cell electric vehicle (FCEV). ![]() Printable Materials & Spanish Resources.Clean Transportation Education – Heavy-duty.Clean Transportation Education – Light-duty. ![]()
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