This Last-Minute Change To Tax Incentives Could Save You $7,500 On An EV Lease – SlashGear

As Reuters reports, the U.S. Treasury Department has confirmed a major expansion in a $7,500 tax credit available to drivers of electric vehicles. Per the Treasury, leased vehicles as well as purchases will be eligible for that benefit. Leased vehicles are also free of several restrictions put on the $7,500 tax credit, including income caps for prospective buyers.

This announcement addresses a key policy change in the Inflation Reduction Act, which was passed in August. Republicans (and some Democrats) representing states rich in fossil fuels pushed for restrictions on the bill’s $7,500 tax credit for electric vehicle purchases. The bill eventually went ahead with the $7,500 available only to car buyers who purchased vehicles assembled in the United States.

That final compromise is part of what got the bill over the finish line. Per Reuters, it also angered several of America’s key strategic allies, particularly the EU and South Korea, both of which host several major EV manufacturers. Treasury’s new policy makes the $7,500 tax credit available to the millions of Americans — nearly a fifth of the entire American new car market — who lease their cars. It also provides an opening for cars built in allied countries: the tax credit is only limited to American makes on car purchases. Drivers who lease foreign cars are still eligible for the government’s $7,500 discount.