The tax credits may slow down EV sales in the short term.
Are you in the market for a new electric car? Great! EVs are swiftly becoming the most sought-after new vehicle. They’re fun to drive and are clearly better for the environment than whatever gas-powered beater you’ve got darkening your driveway.
Now that President Biden signed the bill, there are a couple of new rules that immediately go into effect that you need to know about first. Most of the new rules won’t go into effect until December 31st, 2022, and will stay in place until 2032, but let’s talk about what you need to know right now. That means these companies — Tesla, General Motors, and Toyota — have already sold over 200,000 EVs, which, under the previous rules, triggers a phaseout of the $7,500 tax credit. These three companies are no longer eligible for the current tax credits.Not yet! We’re in a weird liminal period where some of the new rules are in effect, but most don’t kick in until the new year. I told you this was going to be confusing!Starting January 1st, the 200,000 vehicle cap is gone. Poof.
Which vehicles are eligible under these new mineral and mining rules? We — and I can’t stress this enough — don’t know., which represents all the major car companies.
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