WASHINGTON (TND) — A few new rule changes by the U.S. government could allow more electric vehicle owners to get a tax credit.
"Well at the end of the day, it's simply going to incentivize more folks to consider purchasing EVs," said Shelton Weeks, a professor in the department of economics & finance at Florida Gulf Coast University.
This year, tax credits will become available when you buy an EV from an authorized dealer. In years past, those credits weren't available until you filed your taxes.
"They'd be able to get a tax refund for up to $7,500 for a new vehicle and a lesser amount for pre-used vehicles," Weeks said.
But to get the full amount, there are certain qualifications like income and price. Also, the EV must be built in North America along with 60% of its battery materials.
If we're able to do this by making more vehicles qualify then we should expect that there are going to be more people to make that decision and make that switch to an EV," said Weeks.The Treasury Department announced the changes on Friday, giving automakers more time to navigate the changes.
It allows the manufacturers to refine their products and it also allows the public in becoming more comfortable with the technology," Weeks said.These rule changes come as some automakers have started pulling back production of EVs due to lacking sales.
Ford started cutting back on its battery-powered F-150 Lightning and earlier this year rental car agency Hertz announced it was selling 20,000 EVs to buy more gas-powered rentals.
ncG1vNJzZmivmpawtcKNnKamZ56axLR7zZqroqeeYsSwvsudZp2qmauys7%2BMnq2sZZeWwG65zqecsmWipK6lv4ycn5qql567qHnTmq9mm6KasarAjJ6jnpukp7akedWen6KbnJrAbq7InZynZZGZuqq6yKyrq5mknryvecaaqmagqZe%2FqrCMnpqopp%2Bixm6xza%2Bgq6eeorKvwIysmK%2BhnpzAbq7AraueqqlisLC%2F0w%3D%3D