Electric vehicles get tax credits for their purchases because it is an incentive for people to transcend to clean energy technology and avoid any further damage to the environment. However, reports now claim that there are no eligible electric cars from the different manufacturing companies to get the tax credit as they do not fit the criteria.
The criteria here is to have lithium-ion batteries from North America, but most manufacturers source them from China.
EV Tax Credits: No Car is Eligible to Get Discount
According to a report from The Verge, the new EV tax credit law from Congress, particularly the Senate's Inflation Reduction Act, has no eligible electric vehicles for buyers. The supposed $7,500 tax credits are not available for users as most of the components in their lithium-ion batteries are sourced from China, and that does not go in line with the Senate's law.
The new act requires at least 40 percent of the battery components to source from North American manufacturers or suppliers or US trading partners by 2024. It will give the known tax credit of $7,500 to buyers.
However, by 2030, the law requires the manufacturers to source it fully from North America to be eligible for the credits.
Senate's Inflation Reduction Act
The Inflation Reduction Act of 2022 recently passed in the Senate, and it is a significant boost for electric vehicles and the country's focus on electrification from both private and public entities. Moreover, it bodes well for the public who are now getting into clean energy for their transportation needs.
The law is promising, but it is not eligible for most manufacturers as the materials are not adhering to its needs and requirements.
Electric Vehicles Tax Credits
The Inflation Reduction Act is a significant new law from the United States Senate that aims to reduce the costs for electric vehicles that would help the world in their purchases of new cars. Supposedly, the act would help buyers with as much as $40,000 in tax credits that would change a lot for them and help in the country's electrification.
Three companies in the country are no longer eligible to get EV tax credits for their needs, and it is Tesla, Toyota, and General Motors that exceeded the 200,000 units they sold. However, the new law is supposedly going to help these companies offer discounts and tax credits for all users and their needs.
Now, there is a massive wall that is blocking this law from being available for all, and it is because of the EV batteries present in most cars.
Nevertheless, it aims to focus on batteries made in the country, and it would help in boosting more of the economy and jobs that are for Americans, with the cars made in the US. For now, there are no eligible EVs for the tax credits, but soon they would be available, especially for those that source from local manufacturers and suppliers.
This article is owned by TechTimes
Written by Isaiah Richard
