Inflation Reduction Act Impact On Electric Vehicles
The Inflation Reduction Act of 2022, which was signed into law on August 16, is perhaps the most significant legislation to accelerate transportation electrification in U.S. history. The Electrification Coalition has been advocating for many of the key measures included in the law for over a decade. Altogether, this is a major win for consumers and businesses, but there are challenges on the road ahead.
Watch a webinar on recent EV legislation by the Electrification Coalition and SAFE.
Electric Vehicles Are Becoming Increasingly Popular And The Demand For Charging Stations Is Growing
North Carolinas electric cooperatives, including BEMC, are working to create a statewide network of EV charging stations, enabling more consumers in both rural and urban areas to adopt this technology. If youre considering an EV purchase, to see how an EV could be beneficial.
To meet this need in our community, BEMC has installed eight EV charging locations in our service territory:
- Brunswick Forest, 1112 E. Cutlar Crossing, Level II Charger
- Calabash, 1045 River Road, Level II Charger
- Sunset Beach, 419 Sunset Blvd., Level II Charger
- Ocean Isle, 44 West First St., Level II Charger
- Holden Beach, 101 Jordan Blvd., Level II Charger
- Shallotte, 123 Mulberry Street, Level II Charger
- Boardman, 1029 Old Boardman Road, DC Fast Charger
- Oak Island, 182 Southeast 46th St., Level II Charger
BEMC provides Level II chargers. Level II chargers typically take 4 to 6 hours and can charge hybrids and electric vehicles.
Payment can be made through Chargepoint for Level II chargers. Those who are not signed up to use Chargepoint can call the number on the charging station, and a representative will collect payment information for one-time use. Once charging is complete, you will receive a receipt by email.
Federal Tax Credit
Used Vehicles Now Qualify
In the past, EV tax credits were only obtainable when buying new vehicles. That has now changed under the Inflation Reduction Act, which in 2023 will introduce a tax credit for pre-owned clean vehicles that are two or more years old, cost $25,000 or less, weigh less than 14,000 pounds, and are purchased from a dealer. The credit covers up to 30% of the purchase price and is capped at a maximum of $4,000.Again, you wont currently find many options in that price range. However, that could be subject to change as the market matures. Notably, used vehicles dont need to comply with the made-in-America requirements.
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New Jersey Ev Charging Tax Rebates
- Rebates are available in the following amounts:
Federal Electric Car Incentive
A federal EV tax credit program offers up to $7,500, depending on your situation. The type of vehicle you choose and your tax circumstances impact the incentive you qualify for. The capacity of the battery used to power the vehicle impacts the federal tax credit you can get. Electric and plug-in hybrid cars purchased after 2010 are eligible for the federal tax credit.
Since the federal tax credit is based on the capacity of the vehicles battery pack, the original cost of the vehicle does not matter. A more expensive EV will not necessarily offer a higher federal tax credit than a less expensive one.
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Since the Federal tax credit is not a tax rebate, you can only claim the credit up to your tax liability in the year you claim the credit. The tax credit lowers the federal tax liability on your income for that year.
You can view all qualifying vehicles for the Federal EV Tax Credit at fueleconomy.gov. However, consult a tax professional to review your specific tax situation.
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States With Tax Credits/rebates For Electric Vehicle Chargers
Now that weve broken down all the tax credits, rebates, and exemptions at your disposal when acquiring an electric vehicle, its important to think about how and where you plan to charge it.
If you are fortunate enough to own a home, you may want to consider installing a Level 2 EV charger. In addition to potentially raising the value of your home, you can more easily charge your new EV in the comfort of your garage or driveway, saving additional money during off-peak hours.
Better yet, many states or utility companies operating within them offer tax credits or rebates on the equipment and installation of these electric vehicle chargers. How does your state stack up? Have a look below.
Oklahoma Ev Charger Tax Rebates
- Electric Vehicle Charging Station Rebate Public Service Company of Oklahoma
- PSO offers a rebate of up to $250 to residential customers for an Energy Star certified Level 2 EV charging station. Eligible charging stations must be new and purchased in Oklahoma. For more information, including the application, see the PSO EV Charger website.
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New Federal Tax Credits Under The Inflation Reduction Act
- Federal tax credit for EVs will remain at $7,500
- Timeline to qualify is extended a decade from January 2023 to December 2032
- The majority of battery components need to come from North America and
- A certain percentage of critical minerals must come form North America or countries with free trade agreements with the US
Revamped Credit for new BEV/PHEVs
What Is The New Federal Ev Tax Credit For 2022
The Build Back Better bill will increase the current electric car tax credit from $7,500 to $12,500 for qualifying vehicles. President Bidens EV tax credit builds on top of the existing federal EV incentive.
The base amount of $4,000 plus $3,500, if the battery pack is at least 40 kilowatt-hours, remains the same. You can qualify for the additional $5,000 if:
- $4,500 EV Tax Credit: If your EV was made in the US with a union workforce
- $500 EV Tax Credit: If at least 50% of the battery components in your EV are made in the US
Some other notable changes include:
- EV vans, trucks, and SUVs with an MSRP of up to $80,000 qualify
- The electric car tax credit is only available to individuals with a gross income of $250,000 or less
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What About Fuel Cell Cars
If you purchased a fuel cell car after January 1st, 2017, youre no longer able to claim Federal tax credits on these cars. Those who bought before were able to get a Federal tax credit of $4,000, in addition to credits ranging from $1,000 to $4,000. After that, it largely depended on the fuel efficiency rating of the vehicle.
Some states still have these programs. For example, California continues to offer a $5,000 rebate on the Toyota Mirai.
Florida Electric Vehicle Charging Tax Rebates
- All-Electric Vehicle and EV Charging Station Rebates KUA
- Kissimmee Utility Authority provides a $100 rebate for the purchase and installation of a home EV charging station. The EV charging station must be installed by a licensed electrical contractor and must meet all state and local codes. Rebates are limited to one one EV charging station rebate per household. For more information, see the KUA Rebates and Participating Contractors website.
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Alternative Fuel Vehicle Idle Reduction Technologies And Diesel Retrofits Funding
The Clean Fuel Advanced Technology project provides grant funding to reducing transportation-related emissions in nonattainment and maintenance counties for National Ambient Air Quality Standards. A project that is adjacent to these areas may also be eligible for funding if the project will reduce emissions in eligible counties. For more information, including current requests for proposals, see the CFAT website.
Point of Contact
Arizona Electric Vehicle Charging Station Tax Rebates
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Has The Push To Incentivize Electric Vehicle Ownership Undermined Itself
One of the main talking points of the Inflation Reduction Act is its impact on incentivizing people to buy an electric vehicle . This $369 billion bill, signed into law on Aug. 16, 2022, by President Biden, features a number of federal provisions aimed at tackling climate change, keeping EVs affordable, and boosting American industry.
Nevertheless, some of the provisions, however well intended, may have unintended results, with some industry commentators concerned that no current vehicles will qualify for the revised EV tax credit due to its strict price limits and the made-in-America requirements that go into effect in January 2023.
Are There Any State Programs I Can Take Advantage Of
Do remember that the Federal government is not the only body you can claim a tax credit from. There are dozens of programs run by states and even regions that can offer tax credits on electric cars and other vehicles that take advantage of alternative fuels.
Many states have multiple programs, but the problem is most of them apply only to businesses. A lot of credits are in the form of exemptions, such as inspections and fees. Some programs even offer access to carpool lanes and regional free or reduced parking.
Retail buyers do have some options, though. They can claim rebates, tax credits, and reductions on vehicle taxes by purchasing a qualifying vehicle.
California is one such state that does this. If you buy or lease a new car, like the Chevrolet Bolt or the Jaguar I-Pace, you can receive a rebate of $2,500. These programs are in addition to the Federal tax credit. So, Californians can shave off up to $10,000 off the cost of a new model.
On the other hand, Plug-in hybrids work a little differently because their batteries are smaller, and they burn some form of petroleum-based fuel most of the time. Cars like the Chevrolet Volt are only eligible for $1,500 rebates in California.
It would help if you looked up Plugin America for more information. They provide a map of the country and all the different plug-in car rebates, credits, and deductions. The Department of Energy also offers a similar resource.
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Electric Vehicle Tax Credits Available In Mississippi
- All-Electric Vehicle and EV Charging Station Rebate SPPD
- Southern Public Power District offers residential customers a $4,000 rebate for the purchase of a new EV. Rebates are available on a first-come, first-served basis. For more information, including eligible EV charging stations and how to apply, see the SPPD Incentive Programs website.
Electric Vehicles Are Exempt From Sales And Use Tax In New Jersey
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How Much Is The Electric Vehicle Tax Credit For A 2021 Tesla
The Clean Energy Act for America would benefit Tesla by allowing most Tesla vehicles to qualify for an $8,000 or $10,000 refundable EV, electric vehicle tax credit while discouraging Chinese EVs from entering the US market.
Tesla, on the other hand, does not utilize unionized workers. Therefore it would be ineligible for the extra $2,500 or $4,500 credit that corporations like Ford and GM would get.
To help you understand how much each vehicle is worth, look at the chart below:
Something Good For Evs
Nickel was the sixth person in the state to buy a Model S, the first electric car from California-based automaker Tesla. So, he took notice last December when a row of pickup trucks parked in front of a group of charging stations at a Sheetz gas station in Hickory, a small town about 50 miles northwest of Charlotte.
The incident caught fire on the social networking site Reddit and soon made its way into mainstream media outlets. According to the post from a user named Leicina, the truck drivers yelled profanities about Tesla until a station employee told them to leave.
Ive never had a supercharging experience like this one, Leicina wrote. Who do you report activity like this to?
In most of North Carolina, the answer is no one. Under state law, able-bodied drivers caught in parking spots reserved for disabled people can be fined at least $100. But only the city of Raleigh imposes a penalty specifically for cars and trucks that block access to chargers Charlotte uses a general parking ordinance to go after violators.
Nickel and a bipartisan group of his colleagues hope to change that. Republican Sens. Vickie Sawyer of Iredell County and Bill Rabon of Brunswick County, the chair of the powerful rules committee, are cosponsors of Nickels bill. An identical measure from two Democrats and two Republicans in the House cleared a transportation committee this week with no dissenting votes.
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North Carolina Laws And Incentives
Listed below are incentives, laws, and regulations related to alternative fuels and advanced vehicles for North Carolina. Your local Clean Cities coalition can provide you with information about grants and other opportunities. You can also access coalition and other agency contact information in thepoints of contact section.
Alternative Fuel Use And Fuel
State-owned vehicle fleets must implement petroleum displacement plans to increase the use of alternative fuels and fuel-efficient vehicles. Reductions may be met by petroleum displaced through the use of biodiesel, ethanol, other alternative fuels, the use of hybrid electric vehicles, other fuel-efficient or low emission vehicles, or additional methods the North Carolina Division of Energy, Mineral and Land Resources approves. )
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Federal Tax Credit Up To $7500
All-electric and plug-in hybrid cars purchased new in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to power the vehicle. State and/or local incentives may also apply.
Small neighborhood electric vehicles do not qualify for this credit, but they may qualify for another credit.