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.
🧮 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.
✅ For your Smart Homeowner list
- The bottom line: Work with a car dealer you trust and consult with your CPA to be a fully informed buyer.