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1 1 (August 24, 2022)

handle is hein.crs/goveipc0001 and id is 1 raw text is: Congressional ____ ~ Research Service Clean Vehicle Tax Credits in the Inflation Reduction Act of 2022 August 24, 2022 P.L. 117-169, commonly referred to as the Inflation Reduction Act of 2022 (IRA 2022), as signed into law on August 16, 2022, modified tax credits for electric vehicles (EVs) and fuel cell vehicles. The law also enacted new tax credits for used and commercial clean vehicles. This Insight provides information on the tax credits for clean vehicles, highlighting the tax credits that were available before the IRA 2022 was signed into law, and qualifying criteria for vehicle tax credits during the remainder of 2022, in 2023, and beyond. For background on the plug-in EV credit before August 16, 2022, see CRS In Focus IF 11017, The Plug-In Electric Vehicle Tax Credit, by Molly F. Sherlock. Tax Credits for Clean Vehicles Purchased in 2022 Multiple factors determine whether an EV purchased in 2022 qualifies for federal tax credits. Many EVs purchased before August 16, 2022, qualify for a tax credit of up to $7,500 (with smaller amounts available for certain makes and models). Vehicles manufactured by Tesla or General Motors purchased in 2022 are not eligible for tax credits, as Tesla and GM have exceeded the 200,000 vehicle threshold that limits the number of tax credits that can be claimed for vehicles made by a manufacturer. For vehicles purchased after August 16, 2022, only vehicles for which final assembly occurred in North America qualify. The U.S. Department of Energy has released a list of model year 2022 and 2023 vehicles with final assembly in North America. EV purchasers who ordered a vehicle before August 16, 2022, and take delivery of their vehicle at a later date may be able to claim tax credits for vehicles not assembled in North America if they had a written binding contract to purchase the vehicle. In answering the question what is a written binding contract, the IRS noted that a nonrefundable deposit or down payment of 5% of the purchase price can be an indication of this type of contract. Congressional Research Service https://crsreports.congress.gov IN11996 CRS INSIGHT Prepared for Members and Committees of Congress