Treasury Department pushes Electric Vehicle tax credit decision until March.
When the Inflation Reduction Act was signed into law earlier this year, one provision caught the eye of many in the market for a new vehicle. The Electric Vehicle Tax Credit if you may be able to deduct up to $7,500 on the purchase of a qualified electric vehicle.
In the four months since the passage of the Inflation Reduction Act, one would have expected the Treasury Department to draft the final rules before the end of 2022 and before people start filing tax returns in 2023. Unfortunately, that is not the case, as the Treasury Department has instead punted the rulemaking to March.
So, what does that mean for consumers? Well, that depends on where you look. Some reports show that more vehicles will be able to hit that full $7,500 credit until the Treasury Department finalizes the rules. One thing I can tell you for sure is that this will be an interesting time for automakers and consumers trying to figure out exactly what vehicles qualify, and for how long when the rules are announced.
For more information, please reach out to the Professionals at The Center for Financial, Legal, & Tax Planning Inc., at (618) 997-3436.