USA’s new tax credit scheme for electric vehicles

Key features of the Scheme-

• Starting January 1 2023, a credit of up to $7,500 will be offered to people who buy certain new electric vehicles as well as some plug-in gas-electric hybrids and hydrogen fuel cell vehicles. 
• For people who buy a used vehicle that runs on battery power, a $4,000 credit will be available.
• The credit, part of changes enacted in the Inflation Reduction Act, is designed to spur EV sales and reduce greenhouse emissions.
• The new law also provides a smaller credit for people who buy a used EV.
• Certain EV brands that were eligible for a separate tax credit that began in 2010 and that will end this year may not be eligible for the new credit. 
• Several EV models made by Kia, Hyundai and Audi, for example, won’t qualify at all because they are manufactured outside North America.
• The new tax credit, which lasts until 2032, is intended to make zero-emission vehicles affordable to more people.