Democrats Obstruct Their Electric Vehicle Push With Surprising Tax Credit Requirements

Whether wanted by consumers or not, the federal government’s electric vehicle (EV) transition is in full swing, and Democrats hyped the recent passage of the Inflation Reduction Act (IRA) as an accelerant to this evolution.

Further, gas prices’ continual pounding of people at the pump spurred consumers’ EV interest to 36 percent, according to a 2022 Consumer Report. Thirty-six percent may not sound like much, but it’s a significant increase from 2020’s report, which showed EV interest at four percent.

Still, one of the hurdles to increased EV adoption is price. On July 12, Kelly Blue Book reported that the average cost of an EV was over $66,000. The price for an average gas-powered vehicle was $43,942—a $22,000 difference.

Rows of the new Tesla Model 3 electric vehicles are seen in Richmond, Calif., on June 22, 2018. (Stephen Lam/Reuters)

To help combat the above and increase EV adoption, Democrats proposed new EV tax credits in the IRA, and the tax credits went into effect on Aug. 16.

Since the IRA’s passage, however, the particulars of the EV credits have come to light, and some experts are pointing out that the new EV credits exclude lower-priced EVs and could phase out entirely in 2023.

Indeed, economically priced EVs from Toyota and Hyundai are now ineligible for EV tax credits, while Audi’s Q5 PHEV, and BMW’s 330e qualify for up to $7,500—for now.

Why? Democrats tied the EV credits to an “assembled in North America” requirement, and in 2023, that includes the battery.

Assembled in North America

Before the IRA went into effect, there were approximately 72 EVs eligible for a tax credit, according to the Alliance for Automotive Innovation industry trade group.

Now, just 16 2022 Model Year personal vehicles qualify for the federal tax credit, and only three 2023 models are eligible, according

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