The Inflation Reduction Act (IRA) brought with it a number of swift changes. Perhaps the most impactful is that it dramatically reduced the number of electric vehicles that qualify for a $7,500 federal tax credit. Now, a new bill that would reinstate eligibility for many left out is gaining traction in congress.
When the IRA passed it immediately made many vehicles that had been eligible for the tax credit ineligible because they didn’t meet new requirements to qualify. Those requirements include manufacturing the vehicle in North America and over time, requiring that the battery must from North America as well.
Those changes had some brands like Rivian and Lucid scrambling to get their customers locked into purchases, ensuring they qualify for tax credits. It also led to Hyundai speeding up its plan to build a new electric vehicle and battery manufacturing plant in Georgia. Now, this new bill, introduced by four members of congress would automatically make most EVs eligible for the credit once again.
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