EXPLAINER: 2023 tax credits for EVs will boost their appeal

By HOPE YEN and TOM KRISHER
Associated Press

WASHINGTON (AP) — Starting Jan. 1, many Americans will qualify for a tax credit of up to $7,500 for buying an electric vehicle. The credit is part of changes enacted in the Inflation Reduction Act and is designed to spur EV sales and reduce greenhouse emissions. But a complex web of requirements is casting doubt on whether anyone will be able to receive the full $7,500 credit. For at least the first two months of 2023, though, a delay in the Treasury Department’s rules for the new credits will likely make the full credit temporarily available to consumers who meet income and price limits. People who buy a used EV can get a smaller tax credit.