In News
- Starting January 1, many Americans will qualify for a tax credit of up to $7,500 for buying an electric vehicle (EV).
About Tax Credit Scheme
- About:
- A credit of up to $7,500 will be offered to people who buy certain new electric vehicles as well as some plug-in gas-electric hybrids and hydrogen fuel cell vehicles.Â
- The new tax credit will last until 2032.
- It is a part of changes enacted in the Inflation Reduction Act.
- The new law also provides a smaller credit for people who buy a used EV.
- Eligibility to Get Credit:
- It will depend upon different income criteria for new EVs and used EVs.
- How Credit will be Paid:
- At first, it will be applied to the 2023 tax return, which is filed in 2024.Â
- Starting in 2024, consumers can transfer the credit to a dealership to lower the vehicle price at purchase.
- Benefits:
- It is designed to reduce greenhouse emissions.
- It is intended to make zero-emission vehicles affordable to more people.
Source: IE
