March 31, 2023 – Today, the Dept. of Treasury & IRS released updated guidance for federal EV tax credits created by the Inflation Reduction Act. The new changes to the tax credit will go into effect on April 18, 2023.
Plug In America commends the Biden-Harris Administration for making electric vehicles accessible and affordable to more drivers while developing America’s clean vehicle supply chain. The historic Inflation Reduction Act provides tax credits for new, used, and commercial electric vehicles. Treasury and the IRS have spent the last few months tackling the technical complexities of the legislation to implement the battery-sourcing elements of the clean vehicle tax credits.
There is a sense of urgency to get electric vehicles on the roads as quickly as possible to tackle the climate crisis. Every passenger EV that replaces a gasoline car eliminates 4.6 metric tons of carbon dioxide annually. There is also an imperative to develop our nation’s supply chain for clean vehicles responsibly and ethically. The proposed rule successfully supports rapid EV adoption while building our country’s domestic supply chain.
Visit https://pluginamerica.org/learn/federal-ev-tax-credits/ in the coming days for more information about what to expect from these changes that will take effect on April 18, 2023.