EV from the Easter Bunny?

April 24, 2023/smartrooftexas

Easter weekend could see a surge in electric vehicle purchases with people trying to get the full tax credit.

Why it matters: Updated criteria for EVs that qualify for the federal tax credit go into effect April 18, 2023 and some current vehicles will no longer be eligible.

Go deeper with this article.

By the numbers: The criteria are based on eligibility of the buyer and the vehicle.

First, your adjusted gross income cannot exceed $150k for individuals, $225k for heads of households and $300k for joint filers.

Second, your tax liability must be equal to or greater than the $7,500 full credit or $3,750 partial credit to get the full amount (a tax credit is not the same as a rebate).

Vehicle MSRP must be at or below $55k for sedans and $80k for an SUV, van or pickup.

Vehicle must be assembled in North America.

50% of the battery components must be produced or manufactured in North America —> percentage goes up over time to 100% by 2029.

40% of the critical minerals must be extracted, processed and/or recycled from an approved list of countries —> percentage goes up over time to 80% by 2027.

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