Well, the day is here. Actually, the day is April 18th, but today is the day that we know the day is April 18th.
Prospective electric vehicle owners have been waiting in anticipation for the Internal Revenue Service (IRS) in the United States to confirm what their new EV rules will be and when they will go into effect. The agency has been working on new rules to identify what will be required for an EV to qualify for the $7500 federal tax credit, and after delaying the implementation of those rules back in January, the new EV market went crazy in order to get cars delivered before the updates rules went into effect.
EV makers like Tesla were telling their customers to get delivery of cars like the Model 3, which was expected to be impacted by the new rules and lose the credit, by today in order to still qualify for the full tax credit. Well, now we know what the rules will be and when they will officially go into effect.
In a news release, the IRS announced that its new EV tax credit rules will officially go into effect on April 18, 2023. Any vehicle delivered after that date will need to abide by the new battery rules, which require that battery materials in an EV come from North America or a trading partner with the United States. Many batteries powering current EV models come from China, so the new rule with disqualify more EVs from the full tax credit.
It’s still unclear exactly which electric vehicles will lose the full $7500 federal tax credit, and automakers are now scrambling to figure it out. One thing is for sure — we’re about to see EV makers push even harder with marketing to ensure customers take delivery before April 18th in order to grab the full credit.
Despite the full tax credit going away for more, that doesn’t seem to be stopping the transition to electric vehicles. Tesla just started opening up its Supercharger network to non-Tesla EVs, and even 7-Eleven announced it is deploying EV chargers at its convenience stores.
