In the next 5 years, American consumers may see a hefty tax credit if they buy an electric vehicle. The proposed legislation by Democratic lawmakers falls in line with President Biden’s goal to increase domestic EV production and sale. The credits of up to $12,500 per vehicle from union-made facilities and $7,500 for every other US manufacturer.

The legislation, however, sets a cap for the wealthiest in the US. Individuals making $400,000, head of households making $600,000, and joint filers making $800,000 in adjusted gross incomes would not qualify for the tax credit. Moreover, only sedans under $55,000, vans under $54,000, SUVs under $69,000 and pickup trucks under $74,000 would be eligible for the credits. Lawmakers say the caps ensure that the majority of American taxpayers will benefit from the proposal. 

With America doubling down on EV production, the proposal is aimed to incentivize consumer EV adoption and domestic production. With a 5 years time limit, it’s in the American consumers’ best interest to jump on the opportunity.

Source