Claiming a tax credit for your electric vehicle may soon get more complicated.
The Treasury Department and the Internal Revenue Service (IRS) issued the proposed guidance on March 31. They result from provisions in last year’s Schumer-Manchin bill, which some call the “Inflation Reduction Act” (IRA).
The original electric vehicle tax credit, which ranged from $2,500 to $7,500, took effect for cars in 2009, with $7,500 in 2009 being equivalent to $10,230.75 as of 2022.
“Treasury is taking an important step that will help consumers save up to $7,500 on a new clean vehicle and hundreds of dollars per year on gas,” Treasury Secretary Janet Yellen said in an announcement on the guidelines….