Tax Credits

As the new year begins, a [blank] of popular electric vehicles, specifically some Tesla and General Motors models, could be eligible for $7,500 worth of tax credits they weren't eligible for in 2022. That's because limitations on new tax credits enacted in August as part of the Inflation Reduction Act won't be put into force all at once, the Treasury Department announced this week. That means the rules will, temporarily, be more generous, [blank] higher tax credits on more electric vehicles, for the first few months of the new year. Essentially, the tax rules are designed to incentivize automakers to make their electric vehicles and all the parts of those vehicles, as much as possible, in the United States, or in countries with [blank] the US has trade agreements. They're also designed so tax credits don't go to wealthy Americans buying expensive luxury vehicles. The latest announcement, which will temporarily open up more tax credit money, is likely mostly a good thing for [blank] .