Important Information About Tax Credits:

Congress recently passed new legislation—the Inflation Reduction Act of 2022—which changes credit amounts and requirements for clean energy vehicles.

Preliminary guidance from the Internal Revenue Service addresses two important issues regarding vehicles purchased in 2022:

• If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022, (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022.
• If you purchase and take possession of a qualifying electric vehicle between August 16, 2022 and December 31, 2022, final assembly of the vehicle had to be completed in North America, otherwise the same rules in effect prior to the enactment of the Inflation Reduction Act apply (including those involving the manufacturing caps on vehicles sold).

The Department of Energy has provided a list of Model Year 2022 and early Model Year 2023 electric vehicles that may meet the final assembly requirement. Because some models are built in multiple locations, there may be vehicles on the list that do not meet the final assembly requirement in all circumstances.

To identify the manufacture location for a specific vehicle, please search the vehicle identification number (VIN) of the vehicle on the VIN Decoder website for the National Highway Traffic Safety Administration (NHTSA). The website, including instructions, can be found at VIN Decoder.

We will provide more information when IRS releases additional guidance on the credits