Developed by: Inflation Reduction Act
Federal Agency: Department of the Treasury
Consumer Tax Credit
Description: Provides a tax credit for purchasers of clean vehicles.
Recipients: : The tax credit is not available for consumers who have adjusted gross incomes for the current or preceding year above $300,000 (couples), $225,000 (heads of household), $150,000 (singles). Not inflation adjusted.
Timing: Generally, eligible for vehicles placed in service in 2023-2032. Some of the 30D rules have differing timeframes.
Amount:
- Base Credit Amount: $0
- Bonus Credit Amount: $3,750 credit for vehicles meeting critical minerals requirement. The vehicle must contain a threshold percentage of critical minerals extracted or processed in the United States or in a country with which the United States has a free trade agreement, or recycled in North America. Additional $3,750 credit for vehicles meeting the requirement that a threshold percentage of battery components be manufactured or assembled in North America. Vehicles must meet other requirements, including final assembly in North America and MSRP limits (generally $55,000; for vans, SUVs, and pickups $80,000). Starting in 2024, qualifying vehicles cannot have battery components manufactured or assembled by a foreign entity of concern. Starting in 2025, qualifying vehicles cannot contain critical minerals extracted, processed, or recycled by a foreign entity of concern.
More information: Request for Comments
