Why buying an EV before March could save you thousands
The significant savings from EV tax credits are no doubt one of consumers’ biggest incentives in going electric. But, if you’ve ever tried to look into whether or not you or your preferred vehicle are eligible, you may have found it can be a nightmare to weave through the vague eligibility requirements. It’s not just you, the standards are constantly changing.
We are often asked to explain how the credit works, and who is eligible. The truth is, as of March this year, it’s all about to change with new regulations about to be implemented around where the vehicle and battery can be manufactured.
This is why we think now is arguably the best time to purchase a new EV, potentially saving you thousands of dollars.
What is the EV tax credit? And who is eligible?
From the beginning of the year until March, purchasers of a new electric vehicle may qualify for a full $7,500 vehicle tax credit if they meet the below income requirements, and vehicle-class specific MSRP limits, regardless of where the vehicle and battery are manufactured.
- $300,000 for joint filers
- $225,000 for head of household
- $150,000 for single filer
- $80,000 for vans, SUVs, and pick-up trucks
- $55,000 for all other vehicles
Why is now the best time to capitalize on this EV tax credit?
The eligibility criteria is in limbo, and more vehicles than ever will be eligible before changes to these requirements take effect in March of this year.
Starting then, many popular EVs will no longer be eligible for the credit with stringent limitations taking effect on where the vehicle is manufactured, and importantly, where the battery components and minerals are sourced. This will mean that the majority of vehicles from automakers such as Kia, Hyundai, Audi, VW, and Nissan will no longer be eligible as they are assembled outside of North America.
In fact, while some vehicles are manufactured in North America, they will only be eligible to receive partial credit because the battery components and raw materials come from overseas – this will be the case for the much anticipated electric Chevy Silverado.
In response to the new temporary regulations surrounding this, many manufacturers have actually recently lowered prices on their electric vehicles, but it’s likely that these discounted prices may be reversed after March.
We do have to note, however, that current tax credits will only be received for new vehicles delivered before the law changes.
So, if you’ve ever seriously thought about purchasing an electric car, now might be the best time to do it. We are always available to answer your questions about electric vehicles, and help you determine if this is the right choice for you. Feel free to reach out to us at email@example.com at any time.
Not quite ready to commit to purchasing?
We get it, buying a new car is a big decision, and unless you’ve been seriously considering purchasing an electric car for some time, you might not be ready to commit before next month. Here at Motor, we offer the easiest way to try electric before you buy with an all-inclusive monthly subscription service so you can test if an EV, and which one, is right for you and your lifestyle. And, if and when you decide you do want to purchase an EV, Motor facilitates this with a fully-digital purchase journey, taking the hassle out of buying a car.