It may soon be tougher for consumers to get a $7,500 federal tax credit when buying a new electric vehicle, due to U.S. Department of the Treasury rules set to take effect in about a week.
But there’s good news for prospective buyers: Those willing to buy a used EV or lease a new one may qualify for separate tax breaks that are generally easier to claim, tax experts said.
The Inflation Reduction Act, which President Joe Biden signed in August, set various manufacturing requirements for new all-electric and plug-in hybrid vehicles to be able to qualify for the full $7,500 tax credit.
As of Aug. 17, for example, final assembly of the car had to take place in North America.