While Congress rewrote the rules governing EV tax credits in a law passed last year to take effect Jan. 1, 2023, it has taken time for agencies to figure out how they’ll carry out the new law.
The new law was confusing, with some changes delayed until now. Congress' intent was to shape the future auto industry while incentivizing Americans to buy electric vehicles. This explainer from Kelley Blue Book lays out the details, including a quick-hit list of qualifying cars and incentive amounts.
For a complete list of updated tax incentives for: new plug-in and fuel cell electric vehicles and used plug-in and fuel cell electric vehicles, check out the Department of Energy’s updated Tax Incentive and Credit Guide.
As to the BIG WHY of all these changes, a report in the Wall Street Journal analyzes the latest plans to favor EV manufacturers who meet new thresholds that require a certain percentage of the battery parts and minerals to come from a qualifying country.