Legislation offers incentives for more drivers to go green
Sep 27, 2022
By Bradlee Fons
As Christians, we have a special responsibility to use the resources of God’s Garden wisely, including when it comes to transportation. Most drivers have three options for mitigating the effects of transportation on the climate: Don’t drive at all, drive smarter in your current vehicle, or upgrade to an electric vehicle.
The first option isn’t practical. The second is realistic and achievable. The third is becoming a viable option for many, thanks in part to provisions in the recently enacted Inflation Reduction Act. Some highlights of the legislation:
- Eligible new electric vehicle or plug-in hybrid electric vehicle tax credit limits are $55,000 for passenger cars and $80,000 for vans, SUVs and pickups.
- Adjusted gross income limits for new cars: $150,000 for single taxpayers, $225,000 for single taxpayers with a dependent and $300,000 for taxpayers who are married filing jointly.
- Eligible used electric vehicle or plug-in hybrid electric vehicle tax credit limits are $4,000 or 30% of purchase price on eligible cars under $25,000
- Adjusted gross income limits for used cars: $75,000 for singles, $112,000 for single filers with a dependent and $150,000 for married couples filing jointly.
- To be eligible, used vehicles must be bought through a licensed dealer.
- A used vehicle must be at least two model years old, and credit can be used only once.
- Credit is allowed for one vehicle every three years.
- Elective vehicle credit can be applied for at signing to reduce purchase price at the dealer.
- The vehicle must be assembled in U.S., Mexico, or Canada.
The rules are complicated, and not all electric vehicles or plug-in hybrids are eligible for the tax credit under the legislation. Go online at LeafScore, Electrek and Kiplinger to find out more about eligible vehicles.
Bradlee Fons is co-founder of Drive $mart Wisconsin. Email him at email@example.com. Click to learn more about Drive $mart’s Driving in God’s Garden program.
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