How to Use the New EV Tax Credit

Does this mean money in your pocket?

There has been a lot of back and forth on the new infrastructure bill and keeping up with it has been a bit of a tornado. One piece I have been paying special attention to is the new EV credit system. I am going to attempt to break down what this means for those of us who already have an EV or are looking to buy one soon.

Let’s start with the basics of the Act

• Eliminates the 200,000 unit cap for manufactures to qualify
• Base Credit $4000
• 40kwh + qualify for $7500 (same as current credit)
• Income cap of $250,000 for single $500,000 for joint
• Price cap of $80,000 for vans/SUVs, and pickups
• Price cap of $55,000 for other vehicles
• 2027 only vehicles assembled in U.S. will be eligible
• Union-made bonus — $4500 (domestic union factories) (this could be blocked?)
• Used EV tax credit — $2000 base and +$2000 for EV’s in use prior to 1/1/2027 with battery packs of no less than 40kwh (effective 1/1/22–12/31/31). Income based phaseout of 200 for each 1000 of a taxpayers gross that exceeds 250,000 (500,000 joint). need to be less than 2 years old and cost under $25000 + 2k if 40kwh +