April 14, 2023
For customers with their eyes on an EV, here's something that could make the purchase more appealing: They may qualify for a credit of up to $7,500 if they buy a new (qualified) plug-in EV or fuel cell electric vehicle.
The tax credit, effective April 18, is part of the new Inflation Reduction Act of 2022.
It's important to remember that in order to qualify, the vehicle must have undergone "final assembly" in North America and not exceed MSRP of $80,000 for vans, SUVs and pickup trucks, or $55,000 for cars. There are also some income-level requirements that would stop the customer from receiving the full benefit ($150,000 for single taxpayers up to $300,000 for married filing jointly).
With so many variables, this certainly means not all EV purchases at the moment will qualify for the credit. The is another workaround: If the customer buys a used EV for $25,000 or less, they may qualify for a used EV tax credit up to $4,000.
As a dealer, it's important your sales floor knows about these credits as they can become a deciding factor in the customer's decision to buy.