If you own an electric car or are looking for one, you might know that certain EV purchases come with a dollar amount that the federal government lets you deduct from your taxes. The amount of tax credit varies based on a number of factors, so it can be challenging to know your eligibility. This became even more complicated with new legislation recently released in the Inflation Reduction Act of 2022.
Well, we reviewed all 755 pages of the Inflation Reduction Act (admittedly focusing on the parts pertaining to EVs) and made a list of what you need to know on electric vehicle tax credits. Essentially, the Act extends the $7,500 EV tax credit for 10 years, until December 2032. This is great news for the EV community. However, there are several new exceptions to what qualifies, which gets confusing. Listen in for our clear description of what no longer qualifies and what still qualifies for electric vehicle tax credits.
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