By Kelley R. Taylor
From Kiplinger’s Personal Finance
When the Inflation Reduction Act passed in 2022, it ushered in an electric vehicle tax credit worth up to $7,500.
This EV tax credit has caused some confusion ever since partly because of the rules on price limits as well as the manufacturing, sourcing and assembly of the vehicles.
The IRS released guidance late last year to help consumers know which EVs were eligible for the new credit. That guidance used a particular federal vehicle classification standard to determine whether a certain EV is a car or SUV. That distinction is important because under the new law, the tax credit manufacturer’s suggested retail price (MSRP) limit is different for cars than SUVs, vans, and pickup trucks. To be eligible for the EV credit, cars must have an MSRP under $55,000, while vans, pickup trucks and SUVs can’t have an MSRP of more than $80,000….