WASHINGTON, DC – Alliance for Automotive Innovation released the following statement on the U.S. Treasury Department’s updated vehicle classification guidance to help consumers determine the applicable MSRP limitation for clean vehicle tax credits available under the Inflation Reduction Act.
John Bozzella, president and CEO of Alliance for Automotive Innovation, said: “A very good decision that clears up some EV tax credit confusion and instantly helps customers shopping today (and tomorrow) for an electric crossover or SUV.”
· Earlier from John Bozzella: If It Looks Like an SUV and Drives Like an SUV… It is an SUV (And Should Get the EV Tax Credit)
· There are currently 86 EV cars, utility vehicles, pickups and van models now available for sale in the U.S.
· Light trucks sales – including utility vehicles and pickups – represent more than 68 percent of the EV market (Get Connected: Q3 2022).
The Treasury Department said:
To make it easier for consumers to know which vehicles qualify under the applicable MSRP cap, Treasury is updating the vehicle classification standard to use the consumer-facing EPA Fuel Economy Labeling standard, rather than the EPA CAFE standard. This change will allow crossover vehicles that share similar features to be treated consistently. It will also align vehicle classifications under the clean vehicle credit with the classification displayed on the vehicle label and on the consumer-facing website FuelEconomy.gov.
Customers who have purchased and placed in service vehicles since January 1, 2023, that qualify under the EPA Fuel Economy Labeling classification standard announced today and who satisfy the other clean vehicle tax credit requirements can claim the credit, including customers with vehicles that did not qualify under the prior EPA CAFE standard.
Updated list of qualifying vehicles available HERE.