So you’re thinking about purchasing an EV or electric vehicle, and you’re wondering what’s the best time. Well, there’s some new laws hitting the books that change the way there’s vehicle incentives for EVs, how much money you can get back, when you can get the money back, and if there are any restrictions on getting vehicle incentives for electric vehicles based on your income or the price of the car. Let’s take a look at the details. These laws are taking place on January 1, 2023. There are some changes, and there are some other changes that are going to take place a year later, in 2024, which may actually make the pot even sweeter. So you might want to wait a year to buy an electric vehicle.
Here’s how it works: Buyers can get up to $7,500 if they buy an electric vehicle that meets certain criteria. The criteria are that you must have an income of $150,000 or less if you are the head of the household; it’s $225,000 for joint filers. If you’ve got a high income or a high net worth, you may not qualify for some of these incentives. If you think you might make more money in the coming years, you might want to move up your purchase.
Price Cap and Other Limitations
Also, it applies to vehicles priced under $55,000 and trucks under $80,000. There’s a price cap, and it rules out many Teslas and some other manufacturers that have vehicles in the $50,000 to $60,000 range. There are also some limitations on where the vehicle is manufactured; only EVs assembled in North America qualify for the credit, ruling out some imports. In addition, the mining of the raw materials that go into the battery pack has to be done in a certain manner to qualify.
Important Timing Considerations
The most important thing is that before and after January 1st, 2023, you get a $7,500 tax credit. So you have to wait to file your taxes after January 1st, 2024. However, dealers can give you that money as a direct discount on your purchase, so you get the money right away. If you’re borderline on whether or not you want to get one and you don’t want to wait for your taxes or you’re not sure if your tax return is going to come in on time, remember, in 2024, you get it instantly.
For more details on the criteria, you can check out the article; we put a link at the bottom. Alternatively, check out our website; you can see the website name on the video screen.