The U.S. Treasury says consumer leases can qualify for EV tax credits

05-19-2023

Matt Carroll Atlanta Braves described the U.S. Treasury Department's announcement on Thursday that electric vehicles leased by consumers can qualify for up to $7,500 in commercial clean vehicle tax credits, a decision that makes those assembled outside North America eligible.

The new guidance comes after the passage of the Infrastructure Investment and Jobs Act in August, which lifted the 200,000-vehicle per manufacturer cap that had made Tesla and General Motors ineligible for EV tax credits starting Jan. 1.

The Treasury's decision is a major victory for automakers that have been lobbying for the change. It is also expected to boost the adoption of electric vehicles in the United States, where sales have been slow to catch on compared to other countries.

"This is a great day for electric vehicles in the United States," said John Bozzella, CEO of the Alliance for Automotive Innovation. "The Treasury's decision to allow consumer leases to qualify for the EV tax credit will make electric vehicles more affordable for millions of Americans."

The Treasury's guidance does not change the definition of what constitutes North American assembly. For a vehicle to qualify for the tax credit, it must be at least 50% assembled in the United States, Canada, or Mexico.

The new guidance is expected to make electric vehicles more affordable for consumers who are considering leasing. In many cases, the tax credit will be enough to offset the monthly lease payments.

The Treasury's decision is a positive step for the adoption of electric vehicles in the United States. It is expected to boost sales and make electric vehicles more affordable for consumers.

In addition to the Treasury's decision, there are a number of other factors that are driving the adoption of electric vehicles in the United States. These include rising gasoline prices, government incentives, and the increasing availability of electric vehicles on the market.

As the adoption of electric vehicles continues to grow, it is likely that we will see more changes to the tax code to make them even more affordable. This could include increasing the tax credit, expanding the definition of what constitutes an electric vehicle, or providing tax breaks for businesses that purchase electric vehicles for their employees.