EV tax credit may be out of reach for most consumers

While the climate, health care and tax law includes an overhaul for the electric-vehicle tax credit, allies and industry representatives have expressed concern that the statute may ultimately benefit too few consumers.

The law includes a tax credit of up to $7,500 for the purchase of a new electric vehicle. However, to qualify for the full credit after this year, at least half of the battery's components must be manufactured or assembled in North America, while at least 40 percent of the critical minerals must have been sourced from the U.S. or a free-trade partner.

Both requirements will become stricter over time. The tax credits also include buyer income restrictions and price caps of $55,000 for cars and $80,000 for vans, trucks and SUVs.