The federal government has been creating programs to stimulate the EV market and expand access to EV charging stations. One program allows tax credit to be allocated to those who purchase select make and models of electric vehicles. Drivers can get up to $7,500 in tax credits for their vehicles. The requirements for which vehicles qualify depend on the parts used to make them. The vehicles have to have a certain number of parts and materials in them made in the United States. The list was published and then updated recently to include more qualifying vehicles in the list.
The vehicles include various Chrysler, Chevy, Volkswagen, Cadillac, Ford, Lincoln, and Tesla models. The newest additions to the list include some Jeep and Mustang models. Certain vehicles can qualify for the full $7,500 credit while some can only get up to $3,500. In the update, vehicles have been taken off the list and no longer qualify for any tax credits at all. This includes various Audi, BMW, Volvo, Genesis, and Nissan models. The main goal of the tax credit is to boost sales and production of vehicles made in the United States meanwhile influencing people to switch to electric vehicles as part of the Biden Administrations climate change and EV goals.
Other tax credits for EVs include financial incentives for installing EV charging stations that facilities or businesses. The tax credit extensions were included in the Inflation Reduction Act President Biden passed as part to heel the inflation across America.