If you’re looking to get a tax credit for an electric-powered vehicle this year, for personal or business use, you’ll have to hurry. The federal tax credit maximum of $7,500, which launched in 2010, is quickly dwindling. However, there appears to be more incentives on the horizon.
Under the existing credit, there is a threshold on how many models per automaker the credit can apply for. EV models were being awarded $7,500 in tax credits, while PHEV models received various amounts depending on the size of the battery pack.
Tesla has already hit its threshold, as has General Motors. However, many manufacturers still have stock for this credit, including Audi, BMW, Ford, and more. You can find out the latest on The U.S. Department of Energy’s site.
Currently, the fate of electric credits is tied up in the infrastructure bill waiting to pass in the House. on August 10, 2021, the Senate passed a $1 trillion infrastructure bill that included $7.5 billion to build chargers for electric vehicles. In the same month, an amendment passed in the Senate to cap tax credits for vehicles at $40,000 and under for buyers with income under $100,000. The amendment has yet to pass in the House and is likely to change by that point. Additionally, the infrastructure bill is currently held up in the House. House Democrats are also working on a $3.5 trillion budget reconciliation with proposed EV subsidies, which should increase the incentives available above $7,500. As you can see, possibilities are open in a few directions. Only time will tell. We will update this page as news comes in.
For now, you can find more details about the current tax credit from the IRS here.