Not hard to sell out when it’s a compliance vehicle where they built a whopping 505 of them and then stopped production due to production issues short of how many they were planning to build.
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If I buy/lease an ev between now and 12/31 I’ll get the $7500 if its final assembly is in NA? Except Tesla and Chevy?
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Buy yes, lease depends.
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Between now and 12/31, the only change is that if it isn’t made in NA, it’s no longer available.
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For leasing
Check Edmunds as of 8/15 a bunch of Leased EVs have changed their rules.
Example . Kia Niro EV still gets the Incentive (Rebate) as of 8/22 But does not get $7500 if you buy it.
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I wonder if it actually does or if Edmunds just hasn’t received updated numbers.
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I read an article that quoted some american auto alliances group which said no car would actual qualify for the 7500 based on the new rules. Anyone know yet what you can get the rebate on?
Google says that’s a shipping company? I’d expect them to know as much about this as your average elementary school student.
Oops. I messed up the name. Here is the article.
What to know about the complicated tax credit for electric cars : NPR
Not what it said
This is what it said
“Currently, no electric vehicle on the market will qualify for the full tax credit when battery requirements take effect in 2023, according to the Alliance for Automotive Innovation”
Translation - no cars would qualify right now but can if they really wanted to.
Another quote from the article
“Over time, the required amount of minerals in the EV batteries sourced from the U.S. or trading partners will increase. So too will the required amount of components manufactured or assembled in North America.”
“But this is a long-term play by the Biden administration. By incentivizing automakers to cater to a less affluent crowd and by pushing automakers to bring their supply chains to the U.S.”
Question about the previous EV credit. Let’s say I have $15k in taxes withheld a year and I typically receive a refund of $500 for my federal taxes. If this year I claim the $7500 credit, does that mean that I would receive a refund of $8k ($7,500 plus the typical $500 refund)?
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so my original question was what cars actually qualify then? based on the quote it’s non. If companies change materials or how products are made, then yes more will qualify.
No one knows yet, but it’s likely to be a very, very short list in 23
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There’s some explanation here but the actual list doesn’t look like it’s properly vetted.
Yes. That’s usually how it works… as long as you pay taxes over $7500 you will get that back.
If somehow you have less than $7500 in Fed tax liability (withheld or otherwise) you don’t get anything back.
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Actual Translation - When 2023 starts no cars will qualify for the $3750 from minerals minimum portion.(Assuming guidance is provided on time.)
So, the article is correct no cars will meet the battery requirements for the “full” tax credit in 2023. These brands all have multiple year long existing mineral contracts and most have been newly signed. The vast majority outside US and non-FTA countries. Some NA-built vehicles will get the $3750 components minimum portion.
Everyone is basically waiting for secretary to provide guidance on the minerals and components minimums. Both make up an equal portion of the $7500 credit($3750/$3750).
The Alliance for Automotive Innovation is a DC lobbying group for brands like Ford, GM, Toyota. If they are making public statements they are made on behalf of the auto industry. Which means in fact none of the manufacturers currently meet the 40% minerals minimum for half the credit and will not for years. They have to complete their current mineral contracts, before they even can start moving mineral sourcing to North America or FTA countries. These brands will have to do cost analysis on whether it is even worth it. They have less than 5 years to get to 80% of battery minerals from NA or FTA countries.
A lot of people are also glossing over this biggy in the new legislation.
Blacklisted countries ultimately cannot be involved with battery components or minerals. From January 1, 2024, a vehicle will be ineligible if any of the battery’s components were sourced from a “foreign entity of concern,” which includes China and Russia as of this writing, as well as Iran and North Korea. As of January 1, 2025, this exclusion will extend to cover critical battery minerals too. That’s a big deal given China’s outsized role in the minerals supply chain to date.
Basically starting in 2024 if just one component in the battery pack is from China, the vehicle will get zero EV tax credit.
Now consider Ford just announced LFP batteries for the Mach-E and Lightning by 2024. Provided by Chinese manufacturer CATL. CATL also has no concrete plans to build battery cell plants in US.
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Actually, if you had less than $7,500 liability, you would get that back, just not the whole $7,500.
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