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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.”

Read also: Robots were influential to restaurants, but how far is the progress?


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

General Motors plans to stop advertising on Twitter

Image source: Marketing Interactive

General Motors is pausing on Twitter advertising as rival Tesla CEO Elon Musk takes over the social media platform.

The car manufacturing company released a statement on Friday after Musk took over Twitter on Thursday.


General Motors said it is implementing the change while the company evaluates the situation on Twitter.

The country’s biggest automaker said that while it will continue to use the platform to interact with customers, it will not pay for advertising.

“We are engaging with Twitter to understand the direction of the platform under their new ownership,” General Motors said in a statement.

“As is normal course of business with a significant change in a media platform, we have temporarily paused our paid advertising.”

Elon Musk

The Tesla CEO and founder finally bought out Twitter on Thursday night after six months of on-and-off negotiations.

Before closing the deal, Elon Musk worried about the potential loss of ad revenue.

He then sent a letter to advertisers to reassure them on Thursday.

Musk says he doesn’t want Twitter to become a “free-for-all hellscape” where anything can be said without consequences.

However, he first promised to reconsider the platform’s content moderation policies and strengthen freedom of speech.

“Fundamentally, Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise,” Musk said in a letter.

“Let us build something extraordinary together.”

Read also: A letter from Elon Musk reveals plans of pushing through with acquiring Twitter


The revenue of the social media platform comes mainly from advertising.

The ads generated 92% of Twitter’s revenue in the second quarter.

Dan Ives, a technology analyst at Wedbush Securities, said it would be a disaster for the company if advertisers were scared off by the new Twitter owner.

“It sends an ominous signal,” said Ives. “GM [General Motors] is the first, but it’s not going to be the only one.”

“We have to wait and see if there’s a wave. On the day that Musk closes the deal, it’s not the news he wanted to hear.”

Read also: CarMax reports used cars are becoming more unaffordable


General Motors competes with Tesla (Elon Musk’s company) for car sales.

The company is pushing hard to sell electric vehicles but currently lags behind Tesla in overall electric vehicle sales in the United States.

So far, in 2022, electric vehicles have only accounted for about 1% of General Motors sales in the United States.

Additionally, the company has ambitious growth plans for electric vehicles and shares plans to stop selling gasoline vehicles by 2035.

Twitter is unlikely to support Tesla financially, as the company loses hundreds of millions of dollars every quarter.

However, Tesla is still profitable, despite what the company considered a disappointing quarter.

Dan Ives says it cannot be ruled out that part of General Motors’ decision to post the announcement was a shot across the bow at Musk.

“It shows how they view Tesla as a competitor in the EV space,” he said.

Ives added that if advertisers do continue to pull revenue from Twitter, it won’t just be automakers.


GM pauses advertising on Twitter after Elon Musk takeover