, the federal government already offered a $7,500 tax credit for buying certain EVs. But the Inflation Reduction Act makes some big changes to how the program works.Historically, the federal tax credit was only available for the first 200,000 cars sold by a specific manufacturer. This
So if people can get the value of the tax credit at the dealership and effectively knock off a chunk of the down payment, that should go a long way toward making new and used EVs more affordable. The tax credit is either $4,000 or 30% of the sticker price of the car, whichever is lower, and like with new EVs, it can be transferred to a dealer so the buyer can recoup the savings at the point of purchase.
So wow! Prices of electric car are going up. Go figure.
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