Part 4/7:
The $7,500 Tax Credit: A Double-Edged Sword
The tax credit functions in a nuanced way. It can decrease the net price of an EV by $7,500. Yet, it comes with stipulations: only available under certain income thresholds and requiring that specific components in the vehicle meet designated requirements. Many cars fall short of these conditions, making the tax credit largely unusable in practice.
A surprising loophole exists, however. If you lease a vehicle, it becomes part of an automotive fleet, allowing it to qualify for this tax credit even if it doesn’t align perfectly with every stipulation of the Inflation Reduction Act.