Biden Inflation Act Promises Tax Credit Worth Up To $7,500 For New Electric Vehicle Buyers – Ford Increases Price Of Electric Vehicles By Up to $8,500
Joe Biden today signed the “Inflation Reduction Act” that will raise taxes on the middle class, skyrocket inflation even further, and hire 87,000 armed IRS agents to shake down Americans.
But, if you buy an electric vehicle averaging $62,893, you MAY be eligible for a tax credit of up to $7,500 until the year 2032.
$62,893 is the average price of vehicles sold only through dealerships and does not account for direct-to-consumer sales of more expensive electric vehicles. This number also accounts for all-electric vehicle transactions, both new and used.
According to CNBC,
Under the Inflation Reduction Act — which received Senate approval on Sunday and is expected to clear the House this week — a tax credit worth up to $7,500 for buyers of new all-electric cars and hybrid plug-ins would be extended through 2032. The bill would also create a separate tax credit worth a maximum $4,000 for used versions of these vehicles.
“First, in order to qualify, there are price and income restrictions,” said Seth Goldstein, a senior equity analyst at Morningstar.
For new vehicles, the manufacturer’s suggested retail price for sedans would need to be below $55,000 to be eligible for the tax credit. For SUVs, trucks and vans, that price cap would be $80,000.
Additionally, the credit would be unavailable to single tax filers with modified adjusted gross income above $150,000. For married couples filing jointly, that income limit would be $300,000, and for individuals who file as head of household, $225,000
Compared to the average price of all vehicles, which is $47,198, this tax credit for an EV — if you even qualify — won’t save you sh*t.
At the same time, Ford also announced a price increase of up to $8,500 for their electric vehicles.
Biden’s inflation bill: $7,500 electric vehicle tax credit.
Ford: Raised price of electric vehicles by $8,500.
Way to go, Joe.
— Daniel Turner (@DanielTurnerPTF) August 16, 2022
The Gateway Pundit reported earlier that Biden said, “the American People have won, and special interests lost,” before signing the $740 billion bill that the Left rammed through both chambers of Congress with ZERO Republican votes.
Electric vehicle prices were supposed to be heading in reverse right about now. Instead, they’re taking off.
Why it matters: Automakers and independent experts had for years projected steady declines in EV prices as battery costs receded, making the environmentally friendly technology a more affordable replacement for gas-engine cars.
Driving the news: Ford announced Tuesday that it’s raising the price of the F-150 Lightning electric pickup by about $6,000 to $8,500, depending on the model, to a starting price of about $47,000 to $97,000.
- The announcement follows recent EV price increases by several other brands, including Tesla, Rivian, Lucid and GMC.
By the numbers: The average transaction price of an EV in July was $62,893, up 14.8% from $54,797 a year earlier, according to Edmunds. That compares with an average of $47,198 for all vehicles in July.
- The EV average includes only vehicles sold through dealerships, meaning it does not track direct-to-consumer sales of largely-more-expensive models like Tesla, Rivian and Lucid cars.
- “We all wish there were more affordable (EVs) in the marketplace today — there are none,” Edmunds analyst Ivan Drury tells Axios.
Between the lines: Spikes in raw material costs — including the price of nickel and lithium, which are key to battery production — have undermined efforts to drive down the price of EVs.
- Despite more than a decade of EV and battery development, EV raw material costs are more than double the average of internal combustion engine (ICE) vehicle costs — $8,255 vs. $3,662 per vehicle, according to AlixPartners.
Of note: The popularity of models like the F-150 Lightning and Tesla’s EVs have contributed to their price increases, Drury says.
- “The products themselves have been so good and there’s so much demand,” he says.
But, but, but: For EVs to spread to the masses, prices will need to come down — and there’s “no indication” that will happen anytime soon, iSeeCars analyst Karl Brauer tells Axios.
- “They’re going the wrong direction and everyone knows that at the end of the day, price is the biggest factor in determining what people buy,” Brauer says.
The American People lose again.