2022 has promised to bring more EVs to more consumers than ever before. Afraid EV tax credits have been phased out? Unable to find the range you want at the price you want? The new year brings new opportunities for all EV drivers.
With 100 models to choose from, up from 62 last year, and for the first time in history, more than half of all driving age adults (51%) are considering purchasing an EV as their next vehicle. More EVs will soon be on the road than ever before.
Looking for Tax Credits?
The $7,500 credit on new EVs is here to stay. It applies to purchased, not leased, new EVs. A credit that EV drivers can utilize when selecting their new vehicle. This credit was issued to the first 200,000 EVs sold. Electrek put together a list of vehicles that qualify for the tax credit in 2022, and it is virtually every model except for GM and Tesla models. Click here for details.
Drivers fill out the IRS form 8936 in the same calendar year that they bought the car, then the federal tax credit will be applied to the tax amount the driver owes. If the driver does not owe taxes or owes fewer taxes than the credit, they receive a refund.
Federal EV tax credits are not the only kind of credits and rebates available to drivers however. Many states have their own tax credits, credits applying to taxes on new vehicles, single driver use HOV lanes, reduced tolls, and more advantages. The Department of Energy maintains a map with information on state credits. California offers more than any other state, a $7,000 state tax credit, available on top of the federal $7,500 credit.
Some cities, like Los Angeles, also offer local EV tax credits, and utilities have even gotten in on rewarding drivers for purchasing EVs. The Omaha Public Power District, for example, offers residents a $2,500 credit for the purchase of an EV and home charging station.
Many consumers were looking forward to the potential increase in tax credit to $12,500 as part of the “Build Back Better Act” still awaiting passage through the Senate, as of January 2022, following official Congressional approval. The criteria for an extra $4,500 is buying a vehicle built in a unionized American plant, and for another $500 the vehicle has to include a battery pack also made in America.
Better Prices, Better Range
In the past, consumers may have felt trapped between lower priced EVs they could afford or a battery range that made purchasing them worthwhile, but now all consumers are getting the advantage of added range.
According to Chris Harto, Senior Policy Analyst for Transportation and Energy at Consumer Reports, “There has been a lot of pent-up demand for EVs at a reasonable price, at a reasonable range, in segments they [customers] want,” he said. “And they haven’t had that option, up until really this year.”
Some industry insiders have expressed discontent that in the past EVs fit into two categories: little efficient hatch-back cars perfect for the city or expensive luxury sedans with long ranges. Neither of those categories however represent what most Americans want to buy—crossovers, SUVs, and pick-up trucks with good range.
Most of the new models being introduced this year are SUVs, and of course the new Ford-150 Lightning is making its debut. As of January 2022, Ford had over 200,000 pre-orders for the electric version of America’s most popular vehicle. Giving consumers more choices and showing the world the demand for EVs of all sizes.