New Plug-in Electric Vehicle Credit
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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.