New IRS EV Tax Credits Are Now in Effect 

Dealers should review the NADA Regulatory Affairs notice, emailed yesterday. Also bookmark the fueleconomy.gov website, which displays all new vehicles now eligible for the EV tax credit. Please share this information with the appropriate staff.
Effective today (Tuesday, April 18), the universe of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) eligible for an Internal Revenue Code (IRC) Section 30D tax credit has shrunk considerably, as has the amount of the credit for certain qualifying vehicles.
View eligible vehicles at fueleconomy.gov
For a list of all Section 30D qualifying make/models/variants, go to www.fueleconomy.gov.
Note that two search categories (“Purchase Scenarios”) are available: One for vehicles placed in service between Dec. 31, 2022 and April 17, 2023; and one for vehicles placed in service on or after April 18, 2023.
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As listed on the IRS website, 22 EVs will qualify for IRC Section 30D tax credits, down from 41.
  • 14 will qualify for the full $7,500 credit
  • 8 will qualify for $3,750
Note that all of these vehicles (and other EV make/models that don’t qualify for an IRC Section 30D credit) potentially qualify for an IRC Section 45W tax credit if sold to commercial customers, including leasing companies.
More information:
The complete NADA notice is linked below. For more information on the IRC Section 30D tax credits, on the IRC Section 45W tax credits or on other EV incentives, please also see the NADA resource page on EV incentives. (member login required)
Automotive News | Under the Inflation Reduction Act, buyers who meet certain income thresholds can get a tax credit of up to $7,500 for North American-assembled new EVs that also meet sticker price restrictions.

Starting Tuesday, the credit will be split in two, with $3,750 for EVs that have at least 40 percent of the value of the battery's critical minerals extracted or processed in the U.S. or in a country where the U.S. has a free-trade agreement, or from materials that were recycled in North America. Another $3,750 is available if...

Please contact DADA at (248) 643-0250 or MADA at (800) 292-1923 if you have further questions about this issue.
Michigan Automobile Dealers Association
1500 Kendale Boulevard, P.O. Box 2525
East Lansing, MI 48826-2525
Phone (517) 351-7800
Fax (517) 351-3120
Detroit Auto Dealers Association
1900 West Big Beaver
Troy, MI 48084-3537
Phone (248) 643-0250
Fax (248) 643-8788