Episode 205: New EV Tax Credit Requirements

<p>The Inflation Reduction Act, which President Joe Biden signed in August, set various manufacturing requirements for new all-electric and plug-in hybrid vehicles to be able to qualify for the full $7,500 tax credit. As of Aug. 17, for example, final assembly of the car had to take place in North America. The final two requirements — which apply to the sourcing of car battery components and critical minerals — will kick in on April 18 and phase in over a few years, according to the Treasury Department.</p> <p><br></p> <p>Consumers can consult an IRS list to verify which used vehicles qualify.</p> <p>Here are some of the major criteria for cars and consumers to qualify for the $4000 EV tax credit :</p> <p>The car must be purchased from a licensed dealer.</p> <p>The car’s model year must be at least 2 years old.</p> <p>The sale price must be $25,000 or less.</p> <p>It’s only available to individuals, not businesses.</p> <p>Buyers are ineligible for a credit if their annual income exceeds certain thresholds: $75,000 for singles, $112,500 for heads of household and $150,000 for married couples filing a joint tax return. Buyers assess income for the year in which they acquired the car or the prior year, whichever is less. (Income is measured as “modified adjusted gross income.” You can consult these FAQs to determine how to calculate modified AGI.)</p> <p><br></p> <p>Tesla will open a new Megafactory in Shanghai that is capable of producing 10,000 Megapacks a year, the company announced in a tweet Sunday.</p> <p>A Megapack is a very large battery for utilities that stores energy, helps stabilize the power grid and prevents outages. These batteries enable grid operators to move extra capacity between counties or states and ensure that power from intermittent sources can be stored and used when demand is higher, or when there are unplanned outages in a transmission network.</p> <p><br></p> <p>Back in January, Apple first teased an India expansion by posting a dozen Apple store roles for &quot;various locations within I