Navigating Changes to Electric Vehicle Tax Credits: Workarounds and Discounts
The Inflation Reduction Act has set manufacturing requirements for new all-electric and plug-in hybrid vehicles to qualify for the full $7,500 tax credit. The final two requirements will kick in on April 18 and phase in over a few years, which may cause the current list of cars that qualify for the credit to fall in number. However, consumers can still get a tax credit by buying a used EV or leasing a new electric passenger vehicle. The used vehicle credit applies to a broad selection of cars, while the leasing tax benefit doesn't carry the manufacturing requirements attached to purchases of new cars.