More electric vehicles qualify for the revised $7,500 tax credit
The Fed had good news for some automakers on Friday. The Ministry of Finance announced that they have revised the list tram eligible for a $7,500 EV credit under provisions of the Inflation Reduction Act. Five models previously classified as sedans have been converted to SUVs, which have a higher price threshold, allowing buyers to take full advantage of the federal offer.
Tesla, GM, Ford and other automakers have pressed the Biden administration to update their vehicle definitions after the proposed rules are announced in 2022. According to $430 billion climate bills approved in August, SUVs can cost up to $80,000 to qualify for the EV tax credit, while cars, sedans, and wagons can only cost up to $55,000. Decided to increase the retail price limit to $80,000 from $55,000 for the following models:
Why change? Previously, the IRS based its vehicle classification on EPA Business Medium Fuel Economy Framework (CAFE). The revised definitions still come from the EPA, but instead of using classic CAFE standards, it is based on principles for customer-oriented creation. energy saving labels, which will reduce confusion in addition to opening up new options for shoppers. Regulators are also looking for people who made purchasing decisions based on old guidelines.
“Customers who purchased and booked a serviced vehicle since January 1, 2023, qualify under the EPA Fuel Economy Labeling classification announced today, and meet the vehicle tax credit requirements Other cleaners may claim the credit, including customers whose vehicles did not previously qualify under EPA CAFE standards,” the announcement said. “All vehicles that were eligible under the MSRP limit prior to today’s announcement are still eligible under the updated standard. An update on the applicable MSRP limit has been posted. IRS.gov.”
This article contains Reuters reporting.