😳 the tax credit that you probs can’t get

it was less than six weeks ago when i got excited about the inflation reduction act

• signed into law in august, the law is intended to reduce us’ emissions by 40% below 2005 levels

  • this may limit warming to 1.5 degrees celsius

• $350b+ are expected to be poured into climate chane and clean energy initiatives

one area of the law that excites me – ev tax credits

• but i remain doubtful

• qualifying for the tax credit, arguably, is harder than buying an electric vehicle itself!

first off: check where it’s assembled

• “china, that’s where things are made these days” – says a good ol’ line from The Office way back, but the new law does not like that

• as of 8/16/2022, a purchase of a new model-year ev or phev, to require for the tax credit, has be for a vehicle assembled in north america

  • one way to check is to use this vin decoder tool, and yes, i agree, it’s not the prettiest or comfiest interface…

it’s not over though: probs wait till jan-2023

• there's a cap, meaning that for a number of brands, upto 200k vehicles are eligible for the credits

• after that, the credit would drop by 50% and zero for the rest

  • notably, for that reason, gm and tesla cars being made, as of writing, do not even qualify for the clean vehicle credit

oh, and battery too

• where the battery is manufactured and where the battery materials are coming from

  • you guessed it – has to be “not foreign”

there’s more – income cap, sticker price cap, etc.

💡 something im thinking about

that's all, folks 🐒

as always, i’m no financial advisor! (i’m no substitute for professional financial services)

buy me a coffee :)