Navigating the Clean Vehicle Credit for 2022 Cars: North American Assembly Matters

The landscape of electric vehicle (EV) incentives in North America underwent a significant shift with the introduction of the Inflation Reduction Act of 2022. This pivotal legislation (Public Law 117-169) brought about crucial amendments to the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now recognized as the Clean Vehicle Credit. A key change, effective from August 17, 2022, is the requirement for final assembly of eligible vehicles to be completed in North America. This mandate directly impacts new electric, fuel cell electric, and plug-in hybrid electric vehicles acquired, delivered, and placed into service after August 16, 2022. For those considering Cars 2022 models or newer, understanding this assembly requirement is essential for accessing the Clean Vehicle Credit. The guidelines for vehicles placed in service on or after January 1, 2023, are further refined by updated guidance from the Internal Revenue Service (IRS) and the U.S. Department of the Treasury.

Understanding Clean Vehicle Credit Eligibility for Cars in 2022 and Beyond

For the most current and detailed information concerning the Clean Vehicle Credit eligibility criteria, especially as it pertains to cars 2022 and subsequent models, the IRS website remains the definitive resource. Furthermore, FuelEconomy.gov offers a vehicle-specific breakdown of federal tax credits, providing valuable insights for prospective buyers of cars 2022. For a concise overview of the credit itself, the Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit page provides a helpful summary.

A significant update, outlined in proposed IRS regulations, allows buyers, starting January 1, 2024, to directly reduce the purchase price of their clean vehicle by transferring their Clean Vehicle Credit to the dealer at the point of sale. Prior to 2024, the credit could only be claimed when filing annual tax returns. As of January 1, 2024, dealerships are required to utilize IRS Energy Credits Online to submit vehicle information to the IRS. This submission is crucial for determining vehicle eligibility and the applicable Clean Vehicle Credit amount at the time of purchase. Without this dealer submission and IRS approval, buyers of cars 2022 or later models cannot claim the tax credit, nor can they transfer it to the dealer. Dealers are mandated to provide buyers with a copy of the IRS approval as confirmation. For the latest information regarding the point-of-sale transfer of tax credits, both dealers and consumers should consult the IRS Clean Vehicle Tax Credit page.

North American Assembled EVs Purchased Between August 17 and December 31, 2022

It’s important to note that the list of EVs with final assembly in North America, detailed below, is specifically relevant to vehicles purchased and delivered between August 17 and December 31, 2022. This period is particularly pertinent for individuals who purchased cars 2022 models within this timeframe. The list encompasses Model Year 2022 and Model Year 2023 vehicles and is compiled using Fuel Economy labeling data and Part 583 information submitted by manufacturers to the U.S. Environmental Protection Agency and National Highway Traffic Safety Administration (NHTSA), respectively, as of December 31, 2022. For cars 2022 and newer vehicles purchased from January 1, 2023 onwards, verifying final assembly should be done using the VIN decoder tool. Further details can be found on the Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit page and the IRS Qualified Plug-in Electric Drive Motor Vehicle Credit resource.

It is also important to be aware that some manufacturers of North American assembled vehicles have reached the 200,000 EV credit cap. This is indicated in the table below. For vehicles acquired before January 1, 2023, including certain cars 2022 models, this sales cap may affect eligibility for the full tax credit. However, the sales cap is not applicable to vehicles acquired after December 31, 2022.

Electric Vehicles Assembled in North America
Note: Additional eligibility conditions may apply based on the purchase date.

This list is subject to updates as vehicle manufacturers provide ongoing data submissions. Manufacturers can utilize the website contact form to request modifications to this vehicle list. Further information is available in the details for manufacturers section.

Tax Credit Eligibility for Cars Purchased Before August 17, 2022

For cars 2022 or other vehicles purchased before August 17, 2022, the North American final assembly requirement is not a condition for tax credit eligibility. More information can be found at Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit and IRS Qualified Plug-in Electric Drive Motor Vehicle Credit.

Verifying Assembly Location Using the VIN for 2022 Cars

To ascertain the specific assembly location of a vehicle, particularly important for confirming eligibility for cars 2022 and later models, the Vehicle Identification Number (VIN) is crucial. The VIN, along with any information labels affixed to the vehicle, will provide the necessary details. The U.S. Department of Transportation’s NHTSA offers a VIN decoder tool that allows users to identify a vehicle’s build plant and country of manufacture, along with other vehicle-specific information. To check the assembly location of your cars 2022 or any other vehicle, you can use the VIN decoder below.

VIN Decoder
[Link to NHTSA VIN Decoder: https://www.nhtsa.gov/vin-decoder]

Important Note: Verifying North American final assembly is a preliminary step in determining eligibility for the Clean Vehicle Credit. It is essential to understand that additional eligibility criteria may apply, contingent on the purchase date. This is especially relevant when considering cars 2022 models. For vehicles placed in service from January 1, 2023, onwards, consult IRS Credits for New Electric Vehicles Purchased in 2023 and After for comprehensive details. For any questions regarding eligibility, it is recommended to contact the vehicle manufacturer or refer to information from the IRS.

It’s also important to remember that for some manufacturers, the assembly location can vary depending on the specific vehicle, trim level, or production date within the model year. This is because certain models may be produced at multiple locations. Therefore, always verify the build location of your specific vehicle, including cars 2022 models, by using the VIN decoder or checking the information label on the vehicle. For VIN-related inquiries or other specific qualifying information, consumers are encouraged to contact the manufacturer directly.

Definition of North American Final Assembly: For the purposes of the Clean Vehicle Credit, final assembly in North America generally includes locations within the United States and Puerto Rico, Canada, and Mexico.

Disclaimer: The information provided here is for informational purposes only and should not be considered as an official or legally binding document. For complete details and the most up-to-date information on eligibility requirements, please refer to IRS.gov/cleanvehicles.