WASHINGTON — Fewer new electric vehicles will qualify for a full $7,500 federal tax credit later this year, and many will get only half that, under rules proposed Friday by the U.S. Treasury Department.
Electric vehicles now cost an average of more than $58,000, according to Kelley Blue Book, a price that’s beyond the reach of many U.S. households. The tax credits are designed to bring prices down and attract more buyers. But $3,750 — half the full credit — may not be enough to entice them away from less-costly gasoline vehicles.
This year, at least 40% of the value of battery minerals must be mined, processed or recycled in the U.S. or countries with which it has trade deals. That rises 10% every year until it hits 80% after 2026. Some automakers can meet the battery parts sourcing requirements, but few will be able to comply with the mineral provisions, said Guidehouse Research e-Mobility analyst Sam Abuelsamid. Much of the lithium used in EV batteries now comes from China.
The Inflation Reduction Act also places price limits on new electric vehicles, $55,000 for cars and $80,000 for pickups, vans and SUVs. There also are income limits aimed to stop wealthier people from getting credits. Buyers cannot have an adjusted gross annual income above $150,000 if single, $300,000 if filing jointly and $225,000 if head of a household.
Ridiculous plan
If Elon musk work with someone on the 2019 Black Model 3 used 60 something thousand miles 477.00 a month drop that to couple hundred dollars a month we buy it I could swing couple hundred a month until get bill's caught up then pay 300 + a month