The $7,500 electric vehicle tax credit’s full value may be hard to get


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The historic climate legislation President Joe Biden signed in August offered a federal tax break — worth up to $7,500 — to households that buy new electric vehicles.

But it may be tough for consumers to get the full value of the tax credit — at least initially.

That’s largely due to the structure of the clean vehicle credit and certain requirements for consumers and car manufacturers. Those roadblocks, however, are poised to ease in the longer term, experts said.

The tax credit ‘bummer’: It’s nonrefundable

The legislation, called the Inflation Reduction Act, made the tax credit “nonrefundable.”

That means consumers can only get the full financial…


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