Buying an electric vehicle just got more complicated — but cheaper, if you can find the right model.
The Inflation Reduction Act — a centerpiece of President Joe Biden’s plan to tackle climate change and reduce inflation — renews the existing $7,500 tax credit for new EVs and introduces a $4,000 credit for used EV purchases. Both credits are valid through 2032. It also removes manufacturer caps that limit the eligible number of EVs an automaker can sell before its models no longer qualify for the credit.
But it also restricts models that qualify. The vehicle itself must be assembled in North America, and battery parts must be sourced from the U.S. or one of its free-trade partners. Cars must sticker at $55,000 or less; SUVs and trucks at no more than $80,000.
Not all provisions of the bill will go into effect immediately, so you may have to wait until next year or 2024 to take full advantage.
Here’s what you need to know about how the bill — which Congress passed Friday and…
This article was written by Benjamin Din and originally published on www.nerdwallet.com