Inflation Reduction Act Signed Into Law

Next to everything this means for US consumers and the climate, does it also feel like a low-key attempt to leave China’s sphere of influence? Or is that just us?
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Inflation Reduction Act Signed Into Law

Inflation reduction, tax bill, healthcare plan, climate action, etc. Whatever you call it, the Inflation Reduction Act is signed into law, and much of it comes into effect immediately. About 70% of the 72 previously eligible models are no longer covered by the tax credit. The Biden administration issued a list of about twenty 2022 and 2023 models that are still covered.

The other 30%:

​​Electric vehicles eligible for Clean Vehicle Credit

  • Audi Q5
  • BMW 3-series Plug-In and BMW X5
  • Chrysler Pacifica PHEV
  • Ford F Series; Ford Mustang Mach E; Ford Transit Van
  • Jeep Grand Cherokee PHEV
  • Jeep Wrangler PHEV
  • Lincoln Aviator PHEV and Lincoln Corsair Plug-in
  • Lucid Air
  • Nissan Leaf
  • Rivian EDV; Rivian R1S; Rivian R1T
  • Volvo S60
  • BMW 3-series Plug-In
  • Mercedes EQS
  • Nissan Leaf

​​Electric vehicles eligible for Clean Vehicle Credit as of January 1st

  • 2022 Chevrolet Bolt EUV; 2022 Chevrolet Bolt EV; 2023 Bolt EV
  • 2022 GMC Hummer Pickup and SUV
  • 2022 Tesla Models 3, S, X and Y
  • 2023 Cadillac Lyriq

2023. OEMs who have reached the 200k EV limit will be eligible again at the beginning of next year. New guidelines on battery material sourcing, pricing, and income caps will also begin in 2023. 

2024. Buyers can transfer their tax credit to the dealer at the time of the purchase to lower the sale price of new EVs beginning in 2024. 

Loophole. The tax credit will still be available to buyers who placed a non-refundable deposit of 5% on an EV before the new law came into effect, regardless of the manufacturing country.

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