New Electric Vehicle Credit

[athaureaux6]

Good Morning online community, 

About the new EV tax credit, if somebody bought a model 3 Tesla or other qualified vehicle, and assuming they meet all the other income and price caps, is somebody bought the car after August 16th, 2022. when they signed the new law, that taxpayer will have to wait until the 2024 when they prepare the 2023 return to claim the credit, that was my understanding of a couple of you tube videos I saw. Other people are saying they need to buy the car in 2023. I am referring specifically to the people that have bought cars after August 16, BUT IN 2022, assuming they meet all the other qualifications. Thank you and have a great day. 

[TaxGuyBill]

No credit if placed in service in 2022.  For the most part, it follows the old credit which is no longer valid for Tesla (they are past their limit).

The August 16th borderline is just whether or not the "final assembly" requirement applies.

[qbteachmt · Accepted solution]

I googled:

electric vehicle credit

Results include:

https://www.kiplinger.com/taxes/605081/ev-tax-credit-inflation-reduction-act-2022-changes

"for EVs placed into service after December 31, 2022, the Inflation Reduction Act extends the up to $7,500 EV tax credit for 10 years—until December 2032. The exact amount of the credit will be based on a calculation that considers factors like the vehicle’s sourcing and assembly."

"Another change is that if you’re buying a clean vehicle, you will have the option, beginning in 2024, to take the EV tax credit as a discount at the time you purchase the vehicle." (like solar)

"if you purchased an electric vehicle before the Inflation Reduction Act became effective (so before August 16, 2022), and that vehicle is otherwise eligible for the old EV tax credit, you can claim that credit under the rules that applied before the Inflation Reduction Act became law. That's true even if you don't take possession of the EV until after August 16, 2022. Also, the North American final assembly requirement doesn't apply before August 16, 2022."

"EVs Purchased and Delivered Between August 16, 2022 and December 31, 2022: If you purchase and take possession of your EV between August 16, 2022 and December 31, 2022, the rules for claiming the EV tax credit before the IRA became law, still apply, except that the final assembly requirement applies. So, you'll need to check to see if the EV you purchased meets the final assembly requirement in the Inflation Reduction Act (i.e., is eligible for the EV tax credit)."

[qbteachmt]

IRS: https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

Updated information for consumers as of August 16, 2022