Treasury Announcement Clarifies How Americans Can Save on 2023 Electric Vehicle Purchases

Today, the Department of Treasury and the Internal Revenue Service (IRS), took an important step to make electric vehicles affordable and accessible for American families by publishing critical information on the new and revised tax credits for electric vehicles introduced by the Inflation Reduction Act.

President Biden agrees with American families, automakers, and autoworkers that the future of transportation in America is electric. And with the Biden-Harris Administration’s historic actions, the United States is poised to lead the world on clean and efficient cars and trucks.

The Biden-Harris Administration remains committed to bolstering domestic manufacturing and meeting the President’s goal that 50 percent of all new passenger cars and light trucks sold in 2030 be electric vehicles.

By sharing new information on the new and revised tax credits in the Inflation Reduction Act, Treasury and the IRS aim to:

• Answer consumers’ questions on how to take advantage of the new and revised tax credits when buying new or used electric vehicles starting January 1, 2023
• Share a list of vehicles that are eligible for the new and expanded tax credits beginning on January 1, 2023. This list is based on information provided by vehicle manufacturers and will continue to be updated in the coming days and weeks.
• Provide guidance to America’s automakers on how the Inflation Reduction Act’s investments will bolster America’s electric vehicle industry of the future by:
  • Defining several key terms on the tax credit for new clean vehicles for eligibility requirements that go into effect January 1
  • Clarifying “incremental cost” of vehicles eligible for the commercial clean vehicle tax credit
• Share information about the expected direction of upcoming proposed guidance on the critical minerals and battery components requirements and affirm that Treasury and the IRS plan to issue a Notice of Proposed Rulemaking in March 2023 that will trigger the applicability of those requirements.

In 2023, the Biden-Harris Administration will remain committed to delivering on its promise that the clean energy economy will work for working families. We encourage you to learn more about all of the ways that the Inflation Reduction Act’s clean energy tax incentives can help to lower your energy costs in 2023 and beyond.