Jeff Somers had been eyeing electric vehicles for years, but the high cost kept him from taking the plunge.and a federal tax credit of up to $7,500, the cost of many EVs has come more in line with gas-powered vehicles. That prompted the League City resident to pick up the pace, and he and his partner began to research the cost of ownership and financing of different EV models, with the goal of purchasing a pair of cars this summer.
While the federal tax credits have been in place for years, the Inflation Reduction Act signed by President Joe Biden last year will bring changes that may, in the near term, limit which cars are eligible for the benefit. The IRS issued guidelines that go into effect April 18 requiring automakers to prove the battery supply chains for their electric vehicles have a significant presence in North America or in nations with which the U.S. has a free trade agreement.
He and his partner started the process in February, when it looked like the tax credit regulations could change in March. Not knowing exactly when the credit would change created a sense of urgency, Somers said.