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The IRS Is Making It Way Too Confusing To Buy An EV With Tax Credits - The Autopian
If you’re an electric car or plug-in hybrid buyer, you’ve probably had a hard 2022. EV buyers have had to contend with seemingly volatile pricing changes, long waits from manufacturers, and now, a reconfiguration of the EV incentive tax code that many have warned would leave buyers of good EVs high and dry. It’s 2023 and the Inflation Reduction Act is supposed to make buying an EV easier, but after talking to the National Highway Traffic Safety Administration and the Internal Revenue Service it seems like the new law is poised to make the adoption of PHEVs and EVs more of a mess than it was, especially in the short term.
Basically, the Inflation Reduction Act, or at least, the EV, PHEV, and alternative fuel (largely hydrogen) portion of the bill, was meant to combat inflation, in part, by stimulating green energy initiatives. It wasn’t an easy bill to get through; the plug-in tax credit portion went through several revisions, with one of the architects of the bill, Senator Joe Manchin, deriding the concept of an EV tax credit entirely, citing high demand for plug-in vehicles. “When we can’t produce enough product for the people that want it and we’re still going to pay them to take it – it’s absolutely ludicrous in my mind,” said Senator Manchin, at a Senate hearing in April 2022.
On its face, it may have been a little silly to give tax breaks to hyper-expensive cars. Under the old scheme, cars like the $199,999 Lucid Air Grand Touring Performance qualified for a tax credit, but the sensibly priced $27,000 Chevy Bolt EV no longer did. If the goal is to get more people into EVs, that’s not helpful. So, after a lot of political deliberation, and multiple revisions (including a reduction of the initially proposed $12,500 credit for plug-in vehicles), we got the bill we did. President Biden has been open about his goal to get 50% of all new vehicles sold in the United States to be plug-in vehicles by 2030. To reach that goal, the administration wants to invest in EV infrastructure, but also most pertinently, sweeten the pot on the consumer side, to get butts in seats.
(more at source)
If you’re an electric car or plug-in hybrid buyer, you’ve probably had a hard 2022. EV buyers have had to contend with seemingly volatile pricing changes, long waits from manufacturers, and now, a reconfiguration of the EV incentive tax code that many have warned would leave buyers of good EVs high and dry. It’s 2023 and the Inflation Reduction Act is supposed to make buying an EV easier, but after talking to the National Highway Traffic Safety Administration and the Internal Revenue Service it seems like the new law is poised to make the adoption of PHEVs and EVs more of a mess than it was, especially in the short term.
Basically, the Inflation Reduction Act, or at least, the EV, PHEV, and alternative fuel (largely hydrogen) portion of the bill, was meant to combat inflation, in part, by stimulating green energy initiatives. It wasn’t an easy bill to get through; the plug-in tax credit portion went through several revisions, with one of the architects of the bill, Senator Joe Manchin, deriding the concept of an EV tax credit entirely, citing high demand for plug-in vehicles. “When we can’t produce enough product for the people that want it and we’re still going to pay them to take it – it’s absolutely ludicrous in my mind,” said Senator Manchin, at a Senate hearing in April 2022.
On its face, it may have been a little silly to give tax breaks to hyper-expensive cars. Under the old scheme, cars like the $199,999 Lucid Air Grand Touring Performance qualified for a tax credit, but the sensibly priced $27,000 Chevy Bolt EV no longer did. If the goal is to get more people into EVs, that’s not helpful. So, after a lot of political deliberation, and multiple revisions (including a reduction of the initially proposed $12,500 credit for plug-in vehicles), we got the bill we did. President Biden has been open about his goal to get 50% of all new vehicles sold in the United States to be plug-in vehicles by 2030. To reach that goal, the administration wants to invest in EV infrastructure, but also most pertinently, sweeten the pot on the consumer side, to get butts in seats.
(more at source)
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