IRA electric vehicle tax credits take effect up to $7,500 for new EVs $4,000 for used EVs

Key Inflation Reduction Act provisions take effect, a $7,500 federal tax credit for new electric vehicles meeting domestic content requirements, and a $4,000 credit for used EVs under $25,000, the first-ever federal credit for used EVs. The credits are designed to make EVs accessible to middle-income Americans who previously could not afford them. Income caps ensure the credits go to households earning under $150,000 (single) or $300,000 (joint). The domestic content requirements, batteries manufactured in North America and critical minerals sourced from allied countries, are designed to build US and allied clean energy supply chains and reduce dependence on Chinese materials.