Consumers of Electric Vehicles to Receive Hefty Tax Credits, and DOT Goes Electric

By BoroPark24 Staff

Americans who purchase electric vehicles from 2023 to 2032 will be eligible for tax credits of up to $7,500, thanks to last year’s Inflation Reduction Act.

This change comes courtesy of the law passed by congress called the Inflation Reduction Act of 2022. It changed the rules for this credit for vehicles purchased from 2023 to 2032.

To encourage Americans to buy “clean vehicles” that emit less carbon dioxide into the air, the US Congress approved tax credits for consumers who purchase new, plug-in electric vehicles (EV) and fuel cell electric vehicles (FCV). 

The electric vehicles that qualify consumers for tax credits must be bought for the buyers’ own use and not for resale. In addition, consumers must purchase new electric cars and plan to drive them mainly in the U.S. The adjusted gross incomes of married couples who file their taxes jointly must be at most $300,000 a year.

The Internal Revenue Service will only provide tax credits to consumers who paid less than $80,000 for vans, sport utility vehicles and pickup trucks, and $55,000 for other vehicles.

In New York City, the Department of Transportation (DOT) will replace nearly 925 gas-powered vehicles of the city’s service fleet with 1,000 new electric vehicles, Mayor Eric Adams announced today.

Using $10.1 million from federal grants, the DOT will also install 315 new EV chargers across the city to ensure that the city’s fleet is always powered up.

“When New Yorkers see cars, trucks, and vans with the ‘NYC’ logo on the side, they can rest assured that those vehicles are contributing to a greener city,” said Mayor Adams. “We are already ahead of schedule in transitioning city vehicles away from fossil fuels, and this new grant will allow us to take nearly 1,000 fossil-fuel vehicles off our roads, helping us reduce carbon emissions, make our air cleaner, and save on fuel costs.”