Good News for Schomp Automotive Customers Thinking of Going Electric!
The federal government is offering some pretty hefty tax credits to get Americans more interested in purchasing a new electric vehicle. The credits, which went into effect with the new year, were included in the recently passed Inflation Reduction Act as a way to reduce greenhouse gas emissions and support the American auto industry.
Most of the Schomp Automotive Group’s brands already have models that qualify or will soon. The tax credits have several strings attached, and the government is working now to clarify exactly which models will qualify.
The tax credit can be as much as $7,500 for buyers of some new EVs, some plug-in hybrids, and hydrogen fuel-cell vehicles. Even some used battery-powered vehicles will be allowed a $4,000 credit. Eligible vehicles must follow these rules:
- Be made in North America.
- Be a truck, van, or SUV costing less than $80,000; the limit for sedans and hatchbacks is $55,000, although more clarification will be needed.
- Follow complex rules on battery components:
- Have 40% or more battery minerals originating in North America or other U.S. free trade agreement countries.
- Have 50% or more (and escalating to 100%) battery parts made or assembled in North America.
- Have a battery capacity of at least 7 kWh, looping in PHEVs.
An important note: Until the U.S. Treasury Department issues its final rules regarding minerals and parts origins, the battery component rules will be waived, meaning the full $7,500 tax credit will be available.
Here’s the Current List of Eligible Vehicles
- 2023 BMW 330e ($55,000)
- 2023 BMW X5 eDrive45e ($80,000)
- 2022-2023 Ford Escape Plug-in Hybrid ($80,000)
- 2022-2023 Ford E-Transit ($80,000)
- 2022-2023 Ford F-150 Lightning ($80,000)
- 2022-2023 Ford Mustang Mach-E ($55,000)
- 2021-2023 Nissan Leaf ($55,000)
Our other manufacturers – Honda, Hyundai, Mazda, Mercedes-Benz, Porsche, and Subaru – all have made agreements with the federal government but have not provided their lists of eligible vehicles yet. They will be coming soon.
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