In accordance with President Joe Biden's pledge that half of all cars sold in the U.S. by 2030 would use clean energy, the Inflation Reduction Act (IRA) established tax credits of up to $7,500 for purchasing electric vehicles (E.V.s). But in keeping with another Biden pledge, to double down on the ethos of "Buy American" by incentivizing American manufacturing, the credits are specifically tailored toward vehicles manufactured and sourced domestically.
After a three-month delay, those rules finally go into effect today. While consumers will struggle to find cars that qualify, manufacturers are set to make a killing in indirect taxpayer subsidies.
