There’s One Glaring Problem with the Upcoming Electric Vehicle Tax Credit — No One Qualifies

An electric vehicle tax credit included in the 🐴Democrats’ mammoth “Inflation Reduction Act” promises a $7,500 tax credit to electric vehicle purchasers.

There’s one catch, however: No one could claim the credit because virtually no electric vehicles qualify under the terms of the law.

John Bozzella, president and CEO of the Alliance for Automotive Innovation, explained the situation in a blog post Friday.

“here are 72 EV models currently available for purchase in the United States including battery, plug-in hybrid and fuel cell electric vehicles. Seventy percent of those EVs would immediately become ineligible when the bill passes and none would qualify for the full credit when additional sourcing requirements go into effect. Zero,” he wrote.

“Put another way, Americans who would otherwise receive the credit today (say, the family test driving a car this weekend and on the fence about whether to make the switch to an EV) will no longer be able to take advantage of this financial incentive to purchase an EV,” Bozzella said.

“The $7500 credit might exist on paper, but no vehicles will qualify for this purchase incentive over the next few years. That’s going to be a major setback to our collective target of 40-50 percent electric vehicle sales by 2030,” he said.

Writing for Reason, Joe Lancaster noted that President Joe Biden