Kia America will lean aggressively into an Inflation Reduction Act provision that allows it to pass down a $7,500 federal incentive to electric vehicle customers who opt to lease versus buy, according to Eric Watson, the automaker’s sales chief.
“There’s been a bit of a pause in the industry for some brands on electric vehicle sales as everyone sorted out the tax implications of the Inflation Reduction Act,” Watson explained.
Under the most recent changes to the act, an EV can only qualify for the federal $7,500 tax credit if its battery components were mostly assembled or made in North America and the materials for it were extracted or processed in the U.S. or in a country where the U.S. has a free-trade agreement, or from materials that were recycled in North America.
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