Why Is the Chevy Bolt so Hot Right Now?
Since its debut in 2017, the Chevy Bolt EV has made headlines, largely due to its numerous reviews . Now, however, the car is gaining attention for a more positive reason: The 2023 model, which is already the cheapest electric vehicle (EV) in the US , has just dropped in price.
Thanks to the Inflation Reduction Act of 2022, part of which aims to encourage consumers to make greener choices, the IRS is providing a tax credit to buyers of electric vehicles. New EVs are eligible for credit up to $7,500 , and used EVs up to $4,000 . (Here’s a list of new EVs eligible for the full tax credit .)
How Much Does a 2023 Chevrolet Bolt EV Cost?
After the massive recall of the 2021 Bolt electric car , Bolt received a lot of negative publicity, and shortly after the launch of the 2022 model, Chevy decided to cut the label price by $5,000 . After the launch of the 2023 model, they announced another discount, this time for $6,000 . And that was before the IRS released its final tax credit plans for 2023.
Following this announcement, GM raised the base price of the Bolt electric car by $900 to $27,495 “due to ongoing industry-related price pressures,” according to a Green Car Reports article . However, if you qualify for the full tax credit, you could potentially pay the net price after loan of $19,995.
Why you might need to buy sooner rather than later
Vehicles eligible for the full tax credit must be manufactured and sourced in the United States, including their batteries under the new requirements. Although it was originally expected that guidelines for determining which vehicle batteries would and would not meet these requirements were due by the end of 2022, the Treasury has delayed those determinations until at least March . This means that until this year’s recommendations are passed, Bolt is still eligible for the full loan, making it an even more affordable electric vehicle choice.
According to Electrek , there is a possibility that if the battery and minerals for the Bolt electric vehicle are found not to be sourced in a manner that complies with potentially stricter IRS rules, the maximum tax credit for the vehicle could drop to $3,750. in March – or half of the entire loan.
If you’d like to learn more about the latest IRS information on the Electric Vehicle Tax Credit, check out the IRS Frequently Asked Questions .
Who is eligible for the Clean Vehicle Tax Credit?
Unfortunately, not all electric vehicle purchases are eligible for the electric vehicle tax credit.
To qualify for the tax credit, you must purchase the vehicle for yourself (not for resale) and use it in the US. In addition, your adjusted gross income cannot exceed $300,000 for married couples filing jointly, $225,000 for heads of household, and $150,000 for all other applicants.
You can check the full details from the IRS here .
To receive the tax credit, you must file Form 8936 along with your tax return for the tax year and time you owned the electric vehicle (or, as the IRS puts it, when the vehicle was “put into service”). As noted by Car and Driver , this means that if you buy a car in February but don’t own it until the IRS updates the tax credit rules in March, you won’t be able to claim the full $7,500.
If you’re considering buying a new electric car, remember that depending on which state you live in, you may have additional incentives for electric cars. So ask your dealer about your condition.