Some electric vehicles and plug-in hybrids are set to get less affordable from next year, it seems. As expected , the incoming Trump administration has set its sights on killing off the IRS clean vehicle tax credit, according to a report in Reuters this afternoon.

The clean vehicle tax credit was overhauled as part of President Joe Biden's signature climate legislation. Until then, the size of a plug-in vehicle's tax credit was based on its battery capacity, with a credit of up to $7,500 available. But from 2023 the rules changed , requiring a certain amount of domestic production to qualify, as well as adding price and income caps to address criticism that the tax credit mostly subsidized the already-wealthy.

Far fewer vehicles are now eligible for the rebate at time of purchase, particularly after the US Treasury Department got tougher about Chinese content , although a loophole means that none of these conditions apply to leased EVs.

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Some electric vehicles and plug-in hybrids are set to get less affordable from next year, it seems. As expected , the incoming Trump administration has set its sights on killing off the IRS clean vehicle tax credit, according to a report in Reuters this afternoon.

The clean vehicle tax credit was overhauled as part of President Joe Biden's signature climate legislation. Until then, the size of a plug-in vehicle's tax credit was based on its battery capacity, with a credit of up to $7,500 available. But from 2023 the rules changed , requiring a certain amount of domestic production to qualify, as well as adding price and income caps to address criticism that the tax credit mostly subsidized the already-wealthy.

Far fewer vehicles are now eligible for the rebate at time of purchase, particularly after the US Treasury Department got tougher about Chinese content , although a loophole means that none of these conditions apply to leased EVs.

Read full article

Comments

Some electric vehicles and plug-in hybrids are set to get less affordable from next year, it seems. As expected , the incoming Trump administration has set its sights on killing off the IRS clean vehicle tax credit, according to a report in Reuters this afternoon.

The clean vehicle tax credit was overhauled as part of President Joe Biden's signature climate legislation. Until then, the size of a plug-in vehicle's tax credit was based on its battery capacity, with a credit of up to $7,500 available. But from 2023 the rules changed , requiring a certain amount of domestic production to qualify, as well as adding price and income caps to address criticism that the tax credit mostly subsidized the already-wealthy.

Far fewer vehicles are now eligible for the rebate at time of purchase, particularly after the US Treasury Department got tougher about Chinese content , although a loophole means that none of these conditions apply to leased EVs.

Read full article

Comments