In the Inflation Reduction Act there was a tax credit to help Americans fight the rising cost of fuel. A $7,500 credit would be offered to those with an Electric Vehicle but a major issue has arisen that will keep you from claiming it. Auto Manufactures have warned the average car they sell will not qualify because the battery is not made in America.
The Bill specifically states that for people to qualify for the credit that batteries must be mined or recycled from parts in North America. Most of the minerals mined for the batteries comes from South America and China. Only 3 of the top mines are in North America. Not enough to support making cars for the country.
“The $7,500 credit might exist on paper,” John Bozzella, CEO of Alliance of Automotive Innovation said in a statement, “but no vehicles will qualify for this purchase over the next few years.
In the new bill, which currently seeks congressional approval, the tax credits will take effect next year. to qualify for the full credit the vehicles battery must be at least 40% made in America. In 2028 that amount doubles to 80%. This credit is also only available to Single Households that make $150,000 or Joints that make less than $300,000. [Source Associated Press]