The $7,500 Inflation Reduction Act EV tax credit seems to have been extremely effective at boosting EV sales throughout the US so far. The incentives won’t be available starting next month again for the base model of the best-selling EV in the world.
According to Electrek, Tesla has informed its staff that the Model 3 Standard Range variant’s battery was not built in the US, therefore the company expects to lose the entire $US7,500 credit.
For buyers with estimated gross earnings under US$150,000, the US EV tax credit is accessible on all electric automobiles priced under US$55,000.
With the prior credit, which had a limit of 200,000 vehicles for every manufacturer, the new EV Tax Credit applies to all automobiles. The location of the factory in which the vehicles’ batteries are made must also meet specific criteria.
According to the Bipartisan Policy Center, the IRA has 3 sets of specifications for car parts and construction that must be met for EV models to be eligible for tax credits. This is done to increase domestic manufacturing.