Tuesday, October 4, 2022
News Senate Bill Could Lock Out Roughly 70% of all EVs from Tax...

Senate Bill Could Lock Out Roughly 70% of all EVs from Tax Credit

Some good news includes the lifting of the 200,000-vehicle limit per manufacturer for access to incentives


  • The percentage of battery components originating from North America is a limiting factor.

  • As well, households with an adjusted annual gross income of up to $300,000 would be ineligible as well.


This is a complicated Bill, dubbed the Inflation Reduction Act, which covers numerous other aspects other than the automobile. Our interests rest with the EV incentives, tax credit applications, and the lifting of caps.

While the Senate still has to vote on the Bill, the highs include the lifting of the 200,000-vehicle limit per manufacturer for the tax breaks. Automakers such as Tesla and GM ran out of credits simply because they’d managed to sell 200,001 EVs – if all goes to plan, that cap will be removed. The $7,500 will last until 2032. It will be limited to trucks, vans, and SUVs with suggested retail prices of no more than $80,000 and to cars priced at no more than $55,000. As well, only for families that make less than $300,000 annually according to Reuters.

The credit however would have strings attached. In order to get the full amount, the proposal states extra requirements for vehicle batteries and critical-mineral contents that will need to be sourced from the United States. The issue here is that only about 30% of EVs sold in the US would then qualify for partial credits. More than 2/3 of the 72 EVs, PHEVs, and FCVs offered by automakers would not meet the new obligations.

John Bozzella, head of the Alliance for Automotive Innovation, said: “None would qualify for the full credit when additional sourcing requirements go into effect.”

Senator Joe Manchin, who has criticized the incentive for months, said: “I don’t believe that we should be building a transportation mode on the backs of foreign supply chains.”

As part of these new battery requirements, those with any Chinese components would be completely ineligible for incentives.

Trending Now

Rivian Failed to Get Certified by Transport Canada

This means the company can’t sell vehicles in Canada for now A report cites issues with units of measure, labels, noise and anti-theft...

Cadillac Lyriq: Deliveries are Paused due to a Recall

The Infotainment screen can fail to boot up in some circumstances. The problem will be fixed by a software update, but owners will...

Mopar Lets You Make Any Dodge Challenger a Widebody

Factory parts let you make your Challenger Wider Upgrades offered include hood, Redeye nose Thanks to Mopar's Direct Connection parts catalogue, everyone can now...

The Polestar 3 SUV’s Rear-End Revealed

The Polestar 3 launched officially on October 12th. The elegant SUV will pack serious performance. And it looks really good. Based on this new...

Every New Vehicle Sold in New York Will Have to be Zero-Emissions by 2035

The state is following California’s lead 35% of new vehicles will have to be EVs by 2026 and then 68% by 2030 A...
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.