U.S. Electric Vehicle Tax Credits Get Tougher to Navigate
Claiming a tax credit for your electric vehicle may soon get more complicated.
The Treasury Department and the Internal Revenue Service (IRS) issued the proposed guidance on March 31. It’s a result of provisions in last year’s Schumer-Manchin bill, which some call the “Inflation Reduction Act” (IRA).
The original electric vehicle tax credit, which ranged from $2,500 to $7,500, took effect for cars in 2009, with $7,500 in 2009 being equivalent to $10,230.75 as of 2022.
“Treasury is taking an important step that will help consumers save up to $7,500 on a new clean vehicle and hundreds of dollars per year on gas,” Treasury Secretary Janet Yellen said in an announcement on the guidelines.
Yet, Sen. Joe Manchin (D‑W.Va.), whose support was key to taking the IRA across the finish line, has publicly worried that the guidance stacks the deck against fossil energy.
In a statement after the guidance was released, Manchin said it “complete …