Updates on Electric Vehicle Tax Credits

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The new Inflation Reduction Act may be more beneficial than you think. For example, if you drive an electric vehicle for business, you might benefit more than you realized.

The new law has restrictions on electric vehicles used for personal use. For example, the new law called the clean vehicle credit has the following restrictions:

• You can only use it if your adjusted gross income is less than $300,000 if married and filing jointly or $150,000 if single
• The manufacturer’s suggested retail price must be $80,000 or less for vans, trucks, and SUVs or $55,000 for all other cars.
• It must pass challenging tax laws regarding North American assembly and sourcing requirements.

But if you use an electric vehicle for business in 2023 or later, the restrictions above don’t apply. Instead, you will be able to use the business-use electric vehicle credit. The credit is good for $7,500 for electrical vehicles weighing 14,000 pounds or less and $40,000 for electric vehicles weighing 40,000 pounds or more.

Contact us today if you have questions about the Inflation Reduction Act and how you might benefit.