Many Electric Vehicles To Lose Big Tax Credit With New Rules
March 31, 2023 10:03AM PDT
WASHINGTON (AP) — Treasury Secretary Janet Yellen says rules proposed by her department will help consumers save money on electric vehicles while strengthening U.S. energy and national security.
But fewer new EVs will qualify for a full $7,500 federal tax credit under the rules proposed Friday.
The rules taking effect April 18 are required under the Inflation Reduction Act and likely will slow consumer acceptance of EVs, which cost an average of over $58,000.
The Biden administration concedes fewer EVs will be eligible for tax credits in the short term.
West Virginia Sen. Joe Manchin says the Biden administration is ignoring the purpose of the law — to bring back manufacturing jobs and ensure reliable supply chains.