Want to Buy an EV? Now Is a Good Time. You Can Still Get the Full Tax Credit and Selection

If you bought an electric vehicle before December 31, the full EV tax credit (up to $7,500) is available on the widest selection of models eligible for the full credit. As of January 1, 2024, the tax credit becomes immediate upon purchase without needing to file tax paperwork, but there are stricter rules in place regarding eligible models. Regulations regarding battery components and minerals in 2024 will likely limit the number of eligible EV models.

With tax season beginning, buyers who make the deadline should arrange to file their paperwork starting January 2024. As for why the rules are changing, Principal Eric Scaringe said it's largely to change the sourcing for new electric vehicle parts. “The primary reason for the credit was to get people to switch to electric vehicles,” said Scaringe. “Now, the government wants to make sure EV parts are sourced within the U.S., and specifically deter you from certain countries.”

The credit was originally passed as part of the Inflation Reduction Act of 2022, and this latest rule change would further the legislation's goal to help bring manufacturing jobs back to the U.S. and create a more independent nation focused on combatting climate change.

Read the full article published by USA Today.