On August 16, 2022, the President signed the Inflation Reduction Act into law. This law contains updates to consumer tax credits for new and used electric vehicles (EVs). The tax credits will be administered by the Internal Revenue Service (IRS), a bureau of the the Department of the Treasury. In response to a request for information (RFI) from the Department of the Treasury, Consumer Reports submitted comments to provide feedback on the IRS tax credit guidelines.
If implemented well, these new tax credits can help achieve greater consumer adoption of EVs and play a critical role in reaching the White House’s goal of 50% of EV sale shares in the U.S. by 2030 and a 60% reduction in new vehicle greenhouse gas emissions by 2030. The IRS has an important role to play in translating the complex statutory language into clear and easily understood guidelines and tools for consumers, automakers, and dealers. Ultimately the IRS must provide effective tools so that consumers never have to wonder if a vehicle they are considering purchasing is eligible for a tax credit, and how much of a credit fpr which they will be eligible.
The comments were submitted to the Treasury Department on November 4, 2022.