So you’re thinking about purchasing an electric vehicle (EV) and you’re wondering when is the best time to buy? Well, there are some new laws hitting the books in 2023 that change the incentives for EVs around how much money you can get back, when you can get that money back, and a few other restrictions based on income and location. Let’s take a look at the details.
Depending on your income, if you make less than $225K-$300K as a head of household or joint filer respectively, you can get up to $7,500 off in tax incentives. However, households with a higher income do not qualify for this incentive.
EVs under $55K, trucks under $80K
Buyers of EVs under $55K and EV trucks under $80K will also qualify for the new incentives. However, the price cap of $55K rules out many Tesla models. Additionally, the EV must be manufactured in North America, which also rules out certain imports like the Hyundai Ionic.
Manufacturing & mining
The EV must be manufactured in North America, which rules out certain imports like the Hyundai Ionic. Additionally, the method used to mine the raw materials for the battery must be done in a specific manner to qualify for the incentives.
2024 – Direct discount at the time of purchase
Currently, EV incentives are given when the owner files their taxes. Starting in 2024, dealerships will be able to provide direct discount incentives at the time of purchase, rather than waiting until tax season.