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Tax credit rules for next year not entirely clear

Image source: PC Mag

Tax credit: Several electric vehicle models from General Motors and Tesla could qualify for tax incentives in 2023, which is just a few days away.

Some EVs weren’t qualified for tax credits worth $7,500 this year.

Although the change is positive, the eligibility can only be valid for a limited time.

The August Inflation Reduction Act’s restrictions are to blame for the continued eligibility.

This Monday, the Treasury Department announced that the Act’s limitations on newly generated tax credits would not take effect right away.

As a result, during the first few months of 2023, the rules will be temporarily more lenient and permit higher tax credits on more EVs.

The rules

The restrictions on the new tax credits have been delayed until at least March 2023, according to the US Treasury Department.

The new restrictions apply to both the manufacturing location of the battery and the places where its minerals were obtained.

It also announced proposed regulations that would carry out the requirements.

The law specifies that the tax credit reductions will begin as soon as the “proposed guidance” is issued.

Vehicles can be eligible for larger tax credits after three months have passed.

For instance, General Motors said that its electric vehicles will only be eligible for a $3,750 tax incentive if the full restrictions are in place.

For two to three years, the company’s automobiles won’t be qualified for the $7,500 tax credit.

Read also: Electric vehicles enjoy successful year


Despite the buying possibilities they would present in early 2023, the restrictions have the drawback of making the regulations unclear.

Chris Harto, a senior policy analyst at Consumer Reports, stated that he prefers more transparency over less.

“It seems like things just seem to get more confusing each time they say something,” said Harto.

To encourage manufacturers to produce their electric vehicles (and their parts) in the US or other countries with which they have trade relations, tax laws have been implemented in place.

Additionally, they ensure that wealthy Americans who purchase luxury vehicles do not receive tax credits.

Customers will surely profit from the most recent announcement because it temporarily boosts the amount of accessible tax credit money.


One of the many ambiguous parts of the Act is the tilted tax credit for early 2023.

According to updated EV tax credit standards, the Chevrolet Bolt EV and EUV are now qualified for tax credits for the next year.

They were previously ineligible despite the fact that they were built in North America.

The 200,000 electric vehicle sales cap for any firm under the previous tax credit limitations was exceeded by General Motors and Tesla.

The cap will be raised under the new regulations, which are a part of the Inflation Reduction Act.

Despite the adjustment, not all customers (or electric vehicles) will be qualified for credits.

For instance, in addition to the demand for North American output, there will be pricing restrictions.

The maximum sticker price for a car is $55,000, while the maximum price for an SUV is $80,000.

As a result, a majority of Tesla cars (including the Model X SUV, Model S sedan, and Model 3) won’t qualify for tax credits at their present prices.

Since it is produced in the US, the Mercedes EQS SUV now eligible for tax benefits would stop by 2023.

“It shuffles the deck as to who’s eligible, and then the deck will get shuffled again when this guidance comes out [in March],” said Chris Harto.

“And it makes a giant mess for consumers, and automakers, and dealers.”

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Buyers cannot flip because of the restrictions on tax credits.

This implies that the final user must be the one who buys the vehicle.

Individuals are not qualified for the tax credit if they purchase a car with the purpose of reselling it later.

Additionally, the buyer’s income is subject to limitations.

The highest “modified adjusted gross income” for purchasers is $150,000 for individuals, $300,000 for married couples filing jointly, or $225,000 for the head of household.

High-end electric vehicle buyers won’t be able to get tax credits because of the restrictions.

The best thing buyers can do, in the opinion of Andrew Koblenz, vice president of the National Automobile Dealers Association, is find out if the vehicle they are considering purchasing is eligible for the tax credit.

Because some models are made in multiple factories, similar-looking SUVs purchased from the same dealer might not be eligible for the same level of credit.

“It’s a great time to be shopping,” said Koblenz.

“It’s great that there will be more vehicles eligible now, but you’ve still got to make sure the one you’re interested in is eligible.”

“You need to ask your dealer and your manufacturer that question, and you’ve got to make sure that you qualify too.”


Tax credit confusion could create a rush for electric vehicles in early 2023

Afeela makes debut in Las Vegas presentation

Image source: Mashable

Afeela: Sony and Honda entered a collaboration to create an innovative electric vehicle (EV) prototype.

The partnership brings together two behemoths, each of which has a particular area of specialty.

On Wednesday, Sony unveiled the Afeela electric vehicle prototype at the CES in Las Vegas.

The EV

The joint mobility electric vehicle (EV) prototype known as the Afeela was created in conjunction between Sony and Honda.

It is a small, lightweight vehicle created especially for urban use to give city people a practical, environmentally friendly mobility option.

The Afeela is equipped with state-of-the-art technology, a sleek, modern style, and robust driver-assisting systems created by Sony.

The car will have more than 40 sensors, including lidar, radar, ultrasonic, and cameras.

They will assist with object recognition and autonomous driving.

More than just a vehicle

There are still many questions about the vehicle.

The CEO of Sony Honda Mobility, Yasuhide Mizuno, states that the firm created a unique electric vehicle utilizing its knowledge of artificial intelligence, augmented reality, entertainment, and virtual reality.

“Afeela represents our concept of an interactive relationship where people feel the sensation of interactive mobility and where mobility can detect and understand people and society by utilizing sensing and AI technologies,” said Mizuno.

The CEO claims that the vehicle will aim to encapsulate three ideas: autonomy, augmentation, and affinity.


The Afeela’s presentation on Wednesday was very different from the original design Sony exhibited at CES three years prior.

During the recent presentation, a sedan was on display with a light bar across the front, a high-gloss black top, and a closed-off grille.

With vivid highlights above them and dark hubcaps, the wheels themselves had a striking appearance.

According to one description, the prototype resembled a cross between a Porsche 911 and a Lucid Air.

Read also: Prices in the past year: the good and the bad


The Sony Honda EV is a high-end electric vehicle that will rival Mercedes-Benz, Volvo, Audi, and BMW in terms of quality and price.

Sony anticipates that its software will offer subscription services, for which car owners would probably need to make ongoing payments to access advanced features.

Initial concept

When Sony debuted its Vision-S car concept at the Consumer Electronics Show (CES) in Las Vegas in January 2020, it was greeted with high anticipation.

It was a prototype, not the final product, demonstrating Sony’s ideas and improvements.

The Vision-S provides its passengers with a variety of entertainment and music options in addition to its transportation features.

It had a large touchscreen display that could be used to access music, movies, and other forms of entertainment, as well as several built-in speakers.

The Vision-S was initially solely intended to demonstrate what Sony was capable of achieving with a vehicle.

Sony asserted that it had no plans, however, reports of their collaboration with Honda started to circulate in early 2022.

Production and release

At a Honda plant in the US, the development of Sony Honda automobiles will begin.

However, they didn’t provide any specifics regarding the number of cars they wished to produce.

The Afeela will be made available in the US in 2026, then in waves in Japan and Europe.

In 2025, the cars will be ready for preorder.

Other ideas

The Afeela was expected to contain a built-in PS5 and other entertainment capabilities.

Yasuhide Mizuno claims that the idea was to create hardware analogous to that found in automobiles and specially designed for the network and entertainment Sony Honda Mobility wants to provide.

Sony and vehicles

Technological improvements by Sony depend on the automobile sector.

The business has long researched and invested in electric automobiles.

Additionally, according to Sony, EVs have the potential to lessen dependency on fossil fuels, enhance air quality, and advance the transition to a more sustainable future.

The corporation sees vehicles as a potent medium for delivering its technologies and services to clients.

It is constantly looking for innovative ways to employ its expertise to create unique, worthwhile experiences and products for drivers and passengers.

Sony is interested in creating additional technologies and products for the automobile sector, such as intelligent driver support systems and in-car entertainment systems.

Honda EVs

In addition to the Aleefa, Honda is also creating a different series of electric vehicles.

The Prologue is being produced with the assistance of General Motors.

The Prologue, Honda’s first long-range EV, will go on sale in North America in 2024.

The company will also release 30 hybrid battery-electric fuel-cell vehicles by the end of the decade, with this particular type being a part of the inaugural wave.

In addition to its first electric car, the business will also use GM’s Ultium platform to power an unnamed Acura model for 2024 based on the Precision concept.


Sony and Honda just announced their new electric car brand, Afeela

Electric vehicles enjoy successful year

Image source: WBTW

Electric vehicles: Electric vehicle sales are higher than ever, and manufacturers outside Tesla are becoming more well-known.

Matt Degen, an editor at Cox Automotive, a website and company specializing in autos, aptly described the situation.

“It’s not your eyes tricking you,” highlighted Degen.

“For the longest time, the majority of the EVs on the road were Teslas, and they still get the lion’s share of sales.”

“But they’re now hardly the only game in town.”

The numbers

5.6% of the cars sold in 2021, according to Kelley Blue Book, were electric cars.

Two years ago, only 1.4% of electric vehicles were sold.

Norway was mentioned by BloombergNEF analyst Corey Cantor in reference to the success within the global markets.

The 5% market share represented a crucial turning point for greater acceptance.

Similar trends, according to BloombergNEF, also took place in markets like China and Europe.

Although plug-in hybrids were listed among the “electric vehicles” by Bloomberg, battery-powered cars still provide the majority.

A norm

5% may not seem like much, but it may be the beginning of something universal.

For instance, according to Cox Automotive, Hyundai’s entire US market share and market shares for electric vehicles are alike.

Both purchasing a Hyundai and an electric car don’t feel out of the ordinary.

But the main obstacle to buying an electric vehicle is the convenience.

“I think now the demand is definitely there,” said Cantor.

“It’s just been more a supply side of automakers not being able to ship enough.”

Read also: TikTok popularity makes US ban challenging

Supply & demand

The distribution of parts has been a challenge for the global auto industry since the beginning of 2022, which has hindered the manufacture of several vehicles.

The rapid success of a few electric vehicle models caught the manufacturers off guard.

For instance, the 2021 Mustang Mach-E was the first electric vehicle to compete with Tesla sales.

Since then, Ford has had trouble meeting the demand.

According to Darren Palmer, vice president of Ford’s electric vehicle projects, every Mach-Es produced by the company was manufactured according to a specific client order.

“We could sell it out at least two or three times over,” said Palmer.

“We have held back from launching more global markets because we’re completely sold out.”

The F-150 Lightning is a later model of Ford’s F-series pickup truck.

Additionally, the company is updating the Michigan factory where the Lightning is produced.


Additionally, there are now a wider variety of electric automobiles on the market.

Eleven electric vehicle models sold more than 1,000 units in 2019, according to Kelley Blue Book.

In 2022, there were 26 different models produced.

Hyundai and Kia released new models of the Hyundai Ioniq 5 and the Kia EV6 although they already sold electric cars.

Rivian also unveiled its R1S SUV and R1T pickup truck.

Meanwhile, General Motors saw a rise in sales after the Bolt EV and Bolt EUC were put on sale as a result of a battery fire recall.

Currently, the top manufacturers listed below are selling electric automobiles on the market:

  • Audi
  • BMW
  • Genesis
  • Mercedes
  • Volvo

“There’s different segments, there’s different price levels,” said Matt Degen.

“It’s not just having to spend $50,000 or $100,000 on an EV anymore.”

Tony Quiroga, the editor-in-chief of Car and Driver, claims that longer driving ranges and faster charging periods have enhanced the appeal of less expensive electric vehicles.

Additionally winning the 2022 Car and Driver Electric Vehicle of the Year award was the Hyundai Ioniq 5 ($41,000 starting Price).

“It’ll go from 10% to 80% on a fast charger in 18 minutes,” said Tony Quiroga. “Which is something that only the luxury brands were doing.”

Read also: Rent on the rise, but it’s moving at a steady pace

Inflation Reduction Act

Although there is a wider range of electric vehicles available, it is expected that when production problems are resolved, EV sales will climb.

However, there are still a great deal of open issues.

The rise in interest in electric vehicles earlier this year, according to Jessica Caldwell, an industry analyst for, may have been driven by rising gas prices.

People may decide against purchasing electric vehicles in the upcoming year given the recent dramatic fall in gas prices.

Meanwhile, the consequences of the Inflation Reduction Act are still undetermined.

This year’s bill changed the circumstances under which electric vehicles can be eligible for consumer tax credits.

Furthermore, it establishes a limit on the car’s price based on the buyer’s income.

A few factors also favor domestic production of electric car batteries.

The question isn’t how many electric vehicles will be eligible, says Corey Cantor, but rather which ones.

“So, if a Tesla Model 3 and the Chevy Bolt, and the Tesla Model Y, and a Ford Mach-E and an F-150 Lightning all qualify, those are high volume vehicles,” said Cantor.

Due to their popularity and high sales, incentives can lead to an increase in the sale of electric vehicles.


Electric vehicle sales hit a tipping point in 2022