The EV Tax Credit: What GMC EV Shoppers Need to Know
For shoppers seeking a GMC EV in 2023, the EV tax credit is an important talking point. The Inflation Reduction Act, which was published in August 2022, has brought several significant changes to the credit process, which we’ll cover here.
What has Changed?
The biggest change is that the final assembly of eligible vehicles at LaFontaine Buick GMC Dearborn must occur in North America. Also, the $7,500 EV tax credit is now split into two halves – each with different requirements.
To earn the first half, a certain percentage of the vehicle’s critical battery minerals must be sourced from the U.S. or a country that has a free-trade agreement with the U.S. To earn the second half, a certain percentage of the battery’s components must be manufactured or assembled in one of these same qualifying countries.
Specific to a used EV purchased at our GMC dealership, a tax credit of up to $4,000 is available, as long as the EV meets specific requirements. Also, there are eligibility limits on the price of the vehicle and the income of the buyer. If either criteria is too high, you won’t qualify for the tax credit.
- Electric SUVs, vans, and trucks have an MSRP price cap of $80,000.
- Electric sedans and hatchbacks have an MSRP price cap of $55,000.
- Buyer income limits will be based on modified adjusted gross income and tax filing status.
- Starting in 2024, qualified buyers can get the EV tax credit directly from the dealer at the point of sale, rather than having to wait for the next tax season.
If you’re interested in our GMC incentives and our curious as to how they would impact your qualification for the EV tax credit, contact us and we can discuss further.
It’s important to know that, for now, the EV tax credit can only be applied to your taxes. If your tax bill is more than $7,500, the entire EV tax credit will be applied to the amount. If your tax bill is less than $7,500, you will not be refunded the remaining amount – nor can it be applied to the following year’s taxes.
Shop for a GMC EV Today
If you’re shopping for a GMC EV, now is the time to apply for GMC financing and make your purchase. Appeal and affordability have never been higher, and we’ll help you take full benefit of the EV tax credit.