New Plug-in Electric Vehicle Credit
The Inflation Reduction Act of 2022 included complex changes to the credit for electric vehicle. Listed below are some aspects for those who have or will purchase an electric vehicle:
- Final assembly in North America – a list of which vehicle qualifies can be found through the VIN decoder at https://www.nhtsa.gov/vin-decoder
- Effective 1/1/23 the manufacturer limitation that existed in prior law for General Motors and Tesla cars has been removed
- Calculation of the credit to get a $3,750 credit for meeting critical minerals requirement and also a $3,750 credit for satisfying the battery component requirement (to encourage battery supply chains to move to North America vs. China)
- New qualified fuel cell motor vehicle that converts chemical energy into electricity by combining oxygen and hydrogen fuel.
- Modified adjusted gross income limitation (MAGI): $300,000 for joint return; $150,000 for single or married filing separately and head of household $225,000
- MSRP limitation $80,000 for vans, SUVs, and pickup trucks and $55,000 for other vehicles.