DETROIT — Consumers who can find an electric vehicle or plug-in hybrid that qualifies for the $7,500 tax credit now may want to snap it up before the end of the year, experts say, while others wanting to purchase EVs that aren't eligible might be better off waiting until 2023.
Qualification requirements change in January following passage of legislation known as the Inflation Reduction Act. It will replace today's $7,500 tax credit available on all-electric and plug-in hybrid purchases from automakers that have sold fewer than 200,000 vehicles.
The new rules remove that sales cap and still offer up to a $7,500 tax credit on EVs and PHEVs. Vehicles, however, must be assembled in North America and must then meet critical battery mineral and battery components manufacturing requirements to get the full amount. Not all will next year. The new rules also have income and vehicle price maximums.
