Inflation Reduction Act Update!

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Inflation Reduction Act Update!

Since President Biden signed the Inflation Reduction Act

The landscape for Americans interested in buying electric vehicles will see various changes within the US. The most recent draft of the inflation reduction act updated its program to include stipulations around electric vehicles and their tax credits. This law will replace previous tax breaks for electric vehicles with a new set of credits, although once again, not only the location of the vehicle owner matters, but also the location of where the vehicle was manufactured impacts your eligibility. Some important numbers to keep in mind as you consider the credits that go along with electric vehicles are whether or not it is worth it. 

Inflation Reduction Act Update!

As many of us know, while better for the environment, electric vehicles can be a bit of a hassle given that not everywhere across the u.s. has completely updated its infrastructure to compensate for electric filling stations. With that being said, the big number we want to keep in mind is that under these new restrictions within the inflation reduction Act, individuals who make a gross income of over $150,000 a year will not qualify. Joint households with a gross income of over $300,000 a year will also not qualify for EV credits despite the difficulties they may face.

The top brands to watch in the automobile industry would be BMW, Chrysler, Ford, and Jeeps. That being said, that does not mean that all vehicles with electric capacity under these brands are automatically going to qualify. There are also other vehicles with other brands that should be eligible, depending on your area. The advisable Next Step from this point forward would be to do some preliminary research into your vehicle and where it was made, and factor in where you live. Of course, as usual, the greatest step would be to consult with a financial advisor or accountant who is currently up to date with all of the rules and restrictions attached to this new sub-clause of the inflation reduction Act. If you have any questions regarding the topics touched upon in this article that were not answered, please feel free to reach out to us at Interactive Accountants. 

The Next Step

Here at Interactive Accountants, assisting businesses to grow and succeed financially is our number one goal. We are here to help because the better you do, the better we all do! If you’re still not convinced yet to give us a call, feel free to look at our other blogs regarding the help we offer various businesses and offices. Beyond the information we have presented in this article, we also focus on accounting for law firms, accounting for medical professionals, accounting for eCommerce, and accounting for amazon DSPs. If you are a professional in any field that these tips apply to or are simply curious about a topic in this article, please schedule a free consultation here with our owner Matthew Shiebler, CPA. He’s been practicing accounting for over 25 years and is a business owner, just like you!