Good Luck Qualifying for New Tax Credits on Electric Cars

The Inflation Reduction Act (IRA) appropriated $369 billion toward cutting U.S. carbon emissions 40 percent by 2030, including tax credits for purchasing electric vehicles (EVs).

But good luck qualifying for them.

Since 2010, a U.S. taxpayer purchasing an electric car could claim a nonrefundable tax credit of up to $7,500. However, only 200,000 credits could be claimed per automaker. Tesla, General Motors, and Toyota have all reached the limit.

The IRA removes the manufacturer cap and introduces a new credit of up to $4,000 toward a used EV, which could help anybody who can't or doesn't want to buy...