Among the many provisions included in the Inflation Reduction Act (IRA) signed into law by President Joe Biden over the summer are new EV tax credits, with thousands of dollars up for grabs per vehicle. Now, a new report is providing some insight into how consumers view these new EV credits.
Before diving into the report, it’s worth briefly summarizing the new EV tax credits included in the IRA. Simply put, EV buyers will be eligible to receive upwards of $7,500 in tax credit when purchasing an electric vehicle – however, that full $7,500 EV tax credit will only be available on models that are assembled in North America and which incorporate battery materials and components sourced from supply chains from within North America, or from a country with an established free trade agreement with the U.S.
The new EV tax credits also place price caps on which vehicles are eligible, with sedans, hatchbacks, and wagons capped at $55,000, and SUVs and trucks capped at $80,000. Filer income caps are also part of the equation, with single filers earning more than $150,000 AGI, head of household filers earning more than $225,000 AGI, and joint filers earning more than $300,000 AGI all ineligible for the credits. Used EVs are also eligible for credits, and include their own set of rules and requirements.
Now, in a new report from Cox Automotive, consumers are providing their opinions on the new IRA EV tax credits. Based on a Cox Automotive Mobility survey of 1,000 individuals, consumers are generally “somewhat familiar” with the new credits, with most getting their information from the dealer, automaker websites, government websites, or dealership websites. The majority of those surveyed also indicate that the new rules are general easy to understand, and that they will have a positive influence on the decision to purchase an EV.
Further consumer insights include a general consensus that the EV tax credits should only be available on non-luxury models made in the U.S., and that the credit should be available at time of purchase, not later as a tax deduction. Additionally, those surveyed indicate that the credits should only be available to buyers in a certain income range, and most believe that the new tax credits will ultimately benefit the U.S. economy.
The U.S. Treasury is now seeking input on the rule changes ahead of the issuance of guidance. Foreign governments and automakers are actively seeking to change the credit requirements to allow vehicles assembled outside the U.S. to be eligible.
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Comments
Welfare for vehicles for people with money is that not woke or what!!!
As opposed to the last tax cuts ready to expire for tax payers come 2025 but not for so called businesses that pay little if anything in some cases? And which put us in 1 Trillion in debt for the last 3 years of his presidency BEFORE C19 give aways?
What they should do if they really think this is needed is to only give the tax break to those under a certain yearly salary. However i personally think a lot this is going to go away. I think ICE and BEV will just co-exist. We are never getting away from fossil fuels and gasoline. Just not going to happen. Eventually it will come down to what you want to drive.
Actually, the article clearly identifies the income limits for Single and Married filers in order to qualify for this tax incentive.
Can’t wait for 2024!!!!!
What’s 2024 bring for you? Is there a specific EV you are interested in?
The reopening of anwar oil field, and 2$ gas again.
The EV tax credits will end this year with the house going red, but cheap gas will nail the coffin shut and burry it 10 feet below.
EVs will never go away. Too much invested and big oil or others can’t and should not stop it this time. If you want gas burn gas but own the refineries to boot please without corp tax breaks. With or without the USA the world will moveon and we are ONLY 330 million people of the newly announced 8 billion! Moving on….
Senate went blue, so Red insurrectionist House can’t do crap.
Government change! Drill baby drill!
“ The new EV tax credits also place price caps on which vehicles are eligible, with sedans, hatchbacks, and wagons capped at $55,000, and SUVs and trucks capped at $80,000.”
Personally, not a fan of the MSRP and income caps. If the point is to transition quickly to EVs, why limit eligibility? Mostly just a nod I think to the far left progressive branch of the party. But if you have to limit it, the limits should be higher or based on a percentage of median area income, like other aspects of the IRA.
This is something that’s going to be interesting. How are they going to define “truck and SUV”.
Will all those “faux utility vehicles” (aka hatchbacks and wagons marketed as “crossovers”) count?
More so the car companies have already planned for it by upping their price by what 7k in many cases in the name of supply chain constraints and costs…..just like the solar, heat pump and other greedy Bs are doing. So negotiating if that ever comes back will be the deal. I dont expect it anytime soon considering what people are willing to pay.
A main aspect of the credits not covered is that starting 2024, no EV with battery components (cells and such) made in “countries of concern” (aka China) are eligible. In 2025, no EV that has any critical battery minerals sourced from countries of concern will be eligible.
Dims are trying to change that now I believe.
Not that part. There is a bipartisan proposal that to allow EV makers like Kia/Hyundai (South Korea) that already have plans to build in the U.S., a longer grace period.
This survey seems to be spot on IMO. There is zero reason why our tax money shouldn’t go to benefit American brands and especially those brands/models assembled here as well. This was well written and I agree with it.
Toyota and other import brands and foreign countries can go pound sand. The day the Japanese government truly opens the playing field in Japan to GM and other brands, then maybe we can talk more. Until then, keep this bill exactly like it is.
the issue I have is that more “American” brands build in Mexico and Canada….and Korea to an extent while most of the Japanese and German companies build in America using American workers.
JD, although that may be correct and I may agree with some of it, that’s not the full and larger picture. I will stick with American brands assembled in the USA first. Then American brands assembled in countries that we have free trade agreements or are on good terms with them. Last place for me is anything from Japan, no matter where it’s assembled.
Bought my 2020 bolt new for 22K out the door with no government incentives.
I think there should be no tax credits but EVs should be taxed
Dave: EV’s are taxed (sales tax) when leased or purchased just like an ICE vehicle. Not sure what you mean by EV’s should be taxed.
The purpose of the tax incentives is to assist in bringing this new/newer technology down in price so more people can afford it. But in time, EV’s will be commonplace and the prices will be well aligned with comparable ICE. This is nothing new in business and really no different from the feds or states giving huge tax incentives to companies to lure them to that area/state.
The better way to look at this would be to place a carbon tax on every vehicle, EV or not, based on the overall carbon footprint left by that same vehicle. This would be fair because if someone still wanted a gas guzzler truck, SUV or car, they would be free to buy it and pay a tax accordingly to the carbon footprint. This would not eliminate any vehicles, even the EV’s, because every vehicle leaves one. Yet for those not wanting to pay as much tax on that carbon footprint, they would have the option of buying/leasing a much cleaner vehicle.
Carbon foot print tax is freaking dumb. Do you think the people mining all these precious minerals are paying carbon foot print? NO they aren’t . This tax is just a money grab. The government isn’t going to do anything with it but waste it or somebody is getting rich off it. A new report that is very hard to find is that 90 percent of all Carbon is released by nature from dying/rothing trees and leaves. Are we going to get rid of trees now? No we are not. Ev’s are good for dense population to help with polution. If anyone thinks we humans and animals produce more CO2 than the planet does it self you are just dumb. Mining if anything is going to cause more contaminated water and soil. CO2 does none of this. Its part of the life cycle of all living things.
We have a better chance to get killed by a meteor than from Climate. Also if the ocean are really rising which they aren’t, why are banks and the government perfectly fine with giving loan for ocean front property if they think its going to be gone in less than 10-20 years, because they know its going to.
One more thing all the ICE in the world good melt and more than likely the water would probably raise little if any. Most of the ice is under the water and it causes displacement of water which makes it rise. If you don’t believe me fill a glass of water with ice and let the ice melt. The water goes down not up.
Wow Joe, there’s one heck of a lot of misinformation there. So your “source” is difficult to find, but still you know more about all this than the thousands of scientists who’ve been working on this for many years while watching and studying climate change and it’s affects?
Wear tinfoil hats much?
Atta’ boy Danny ! Since you cannot refute with facts, immediately turn to derision and mockery. Typical leftoid B.S. If it didn’t fit your “Agenda” you’d deny the Sun rises in the East.
Let’s see here billj598. Seems to me that you are attempting (badly) at fogging or maybe projection. Joe spews a bunch of nonsense that he can’t proof and his best comeback is that “A new report that is very hard to find”? Nothing he/she said is accurate or truthful (that is unless you listen only to Fox or other right-wing garbage). Fact is that there are thousands of professionals all over the world who have been studying climate change and it’s affects for many years. All the proof you need it directly at your fingertips. If you want facts, educate yourself instead of making silly comments on here that make you look……………
Awww, poor Danny-boy, another lefty “triggered” by truth and irrefutable facts who got schooled and is now butt-hurt and trying to recover from it. FYI genius, I was replying to your line-up of lies and insults from your extreme left nonsense. One day, just maybe, you might “get it” that “thousands of scientists” are toeing the line to get funded with grant$. They have no proof whatsoever that ONLY human activity is causing the Earth to warm just like it has been proven to have happened previously. Your Biden, energy-hogs create such a huge “carbon footprint” that you dimwits never want to admit it is just so easy to smack you all down with facts. Ta-ta to ewe as you source your lies and misinformation from the “always truthful” MSM.
billj598: You are totally all talk and nothing more. You resort to calling names and spewing right wing talking points like you work for Infowars.
Do what you wish, think what you want and act as you are. It only makes you look foolish at best.
And BTW, I’m as centered when it comes to politics as anyone you would ever meet. But you are too entrenched in your fights to see truth. You are too busy attempting to burn anyone to the ground that doesn’t agree with you 100% that you will lose in the end. So how about this. You like to throw out there about facts and truth and yet you haven’t given one shred of it here. Instead you attempt to put that onto others.
So put up or shut up. Put down your “facts”.
Blah blah blah, or in your case baa-baa-baa. Another lefturd posing that he/she/it is not a freaking liberal democracy denier. You self-identified long ago. Deal with it. I already posed facts on here and you pulled the usual Deny, Deflect, Denigrate and Demean lefty garbage and just dwell on calling people who school you foolish and right wing. Your “facts” are pure B.S. and ewe are one of those who swallows every lie the Corporate Media Propaganda Machine drills into your wee, tiny psyche’. Have a great life with the morons you voted for, ewe richly deserve them. Do us all a big favor and just STFU…but you and those like you won’t !
billj598:
Yup, you have nothing. Exactly like I said. Now put your tinfoil hat back on, tune into your right-wing media and call up a few of your Oath Keepers buddies so you can all tell each other how great you are.
Since the beginning of industrial times (in the 18th century), human activities have raised atmospheric CO2 by 50% – meaning the amount of CO2 is now 150% of its value in 1750. This is greater than what naturally happened at the end of the last ice age 20,000 years ago.
Horse-hockey. So, in your extreme lefty agenda, only “human activities” have done this ? Guess you never heard of Volcanic eruptions did you ? WISE UP !!!
Haha. I think it’s quite funny how GMA will “remove” some comments based on what? So this guy calls someone else “freaking dumb” and proceeds to spew many untruths. So I respond last night with no name calling and call him out on his false statements, followed up with a smart remark about tinfoil hats. And GMA removes mine?
And you people talk about being WOKE!
Awww, poor baby, Did widdle ewe get deleted by the big bad censors ? Get used to it, it’s been happening to those of us on the conservative side for years thanks to the idiots you vote for. Remember chum, you started it. Next time keep a civil tongue in your lefty keyboard. Those facts are only “untruths” according to the liars you listen to and swallow whole. They aren’t “untruths” just because you say so but you will never comprehend or admit that will you ?
Terribly opinionated, insulting, condescending, long-winded and superfluous.
Road use tax by miles driven sounds fair. Need to “pay their fair share” right, isn’t that the current administration’s mantra?
There already is a Gas Guzzler tax, but there is not currently a Lithium or Cobalt environmental disaster tax on the overpriced EV’s. they are overpriced because they cannot compete and have not for 30-40 years of trying. seems like a waste of energy to me.
JD: This is why a tax on the carbon footprint would be so fair. It would include every vehicle because every vehicle has one. Some are just smaller than others. It would also allow those who still wish to drive something that is a gas guzzler to do so with the proper taxation. Those who wish to leave a much lower carbon footprint would be taxed much less. Then eliminate the current gas guzzler tax and use the new tax revenue to combat the climate change that does affect every human being on earth.
I would be cool with no tax credits for EVs, if they eliminate all gas subsidies. And raid e gas tax by the appropriate amount to account for the cost of externalities like damage to health and environment, and to pay back the $trillions they have spent on war to protect oil sources and trade routes.
“EV tax credits will benefit the US economy” ? LOL, not sure how that works. It’s corporate welfare.
Yes just like big oil tax breaks for every well they drill and toss millions of gallons of water/chems used to frack. Choose wisely I say and lesser of the evils. It would be good to see the legitimate cost of building EVs and BEVs from materials and costs of those materials and molding them to parts to the eventual car considering EVs use many less parts than a BEV and is mining any worse and costly as the tens of thousands of wells drilled and at times mishandled.
Have we not figured out yet, that manufacturers inflate the price of the their EVs by the amount of the incentive, during the time they are eligible? What is the point?