New requirements for a car manufacturer qualified for full $7,500 EV tax credit the set high barbut the CEO of General Motors Mary Barra believes the company will get there quickly. Bloomberg report that on a call with analysts last week, Barra said it would take less than three years for GM EVs to qualify for the full tax credit..
“We think, out of the gate, we will qualify for $3,750 and we will ramp up to full eligibility in the next two to three years, getting up to $7,500,” said Barra. quoted said on the call. “It only took a few years to grow on our expectations with the supply moves we made.“
It’s an impressively fast growth step and will be a big deal for GM. Under the terms of the Inflation Reduction Act, eligible electric vehicles must built in North America to qualify for the tax credit. For many automakers, that will mean building new factories or moving electric vehicle production to facilities in the United States. United States, Mexico or Canada. When the IRA passes, only 30 percent of the total number of electric vehicles sold in the United States standards for a $3,750 tax credit.
Go to get In the second half of the tax credit, automakers must source raw materials for their batteries from countries that have a free trade agreement with the US. That will likely be the biggest obstacle for companies wanting electric vehicles eligible for full $7,500. So if GM can actually get there in less than three years, that will likely give it a big advantage over competitors that still don’t qualify even if they move cars. production to North America.
It will also go a long way towards helping GM achieve its goals sell one million EVs by 2025.
