In 2024, electric vehicles are all the rage, and the burning question on everyone’s mind is: do I qualify for the US federal tax credit? While the answer might be a simple “yes” or “no,” the devil is in the details. Our comprehensive guide breaks down everything you need to know about unlocking EV tax credits for your shiny new ride.
What?
The Federal EV tax credit can land you up to $7,500, but there are hoops to jump through. The Inflation Reduction Act of 2022 extended the terms for this credit through 2032. However, the amount you get depends on your income tax and specific vehicle qualifications. The new credit terms prioritize EVs with battery components assembled in North America, among other criteria.
Why does it matter?
Knowing which electric vehicles qualify for federal tax credits in 2024 is crucial for maximizing your savings. From Tesla to Ford to Volkswagen, a range of models can potentially net you substantial credits, but not every version of the models listed may qualify. Be sure to check with your local dealer for eligibility details.
How is it going to shape the future?
The landscape of EV tax credits is ever-evolving. The latest IRS guidance, updated in May 2024, provides more flexibility for automakers to comply with the sourcing requirements. Additionally, the new credit now includes used EVs priced below $25,000, expanding the pool of eligible vehicles.
Navigating the state tax incentives, VIN decoding, and income limits for tax credits can be overwhelming, but with our breakdown, you’ll be equipped to make informed decisions. As the industry moves towards stricter criteria for tax credit eligibility and more sustainable practices, staying on top of these changes will be critical for consumers and automakers alike. Stay current, stay informed, and unlock those EV tax credits like a pro.
Source: https://electrek.co/2024/05/13/which-electric-vehicles-qualify-us-federal-tax-credit-ev-2024/