Photo: Chevrolet
Thanks to generous price cuts, the Chevrolet Bolt EV is already the cheapest electric vehicle you can buy in the U.S. Nevertheless, starting January 1, new IRA incentives will make the once-beleaguered EV the most affordable new car on the market, bar none.
The Chevrolet Bolt EV has not had smooth sailing, being affected by a battery problem that could result in a fire. GM and LG Chem fought for the blame for more than a year, while Bolt EV owners had to stop using their beloved EVs. Nevertheless, this year the problem was finally solved, and GM replaced Bolt’s batteries at LG Chem’s expense, but the Bolt EV remained unattractive.
GM then threw everything it got into the game to see what sticks, and, lo and behold, the Bolt finally turned into a success story. Of course, this was helped by a hefty discount, not to mention various incentives offered to Bolt customers, including a home charger and charging credit with third-party charging networks. At an MSRP of $25,600, the deal was sweet enough that Hertz wanted to buy many EVs from GM.
Nevertheless, the deal should become even sweeter from January 1, once Chevy Bolt will once again qualify for a tax credit. The Inflation Reduction Act forgoes the sales quota of the previous tax credits awarded to buyers of electric vehicles. Instead, it mandates that the car and the battery be assembled in the U.S. and the critical battery materials be sourced from the U.S. or a country that has signed a free-trade agreement with the U.S. If the car’s battery fits only one of these two criteria, it only qualifies for half the credit.
Initially, GM has announced that Chevy Bolt buyers will qualify for a $3,750 tax credit once the IRA starts to produce effects. Nevertheless, as the Treasury has delayed until March the rules around the battery sourcing requirements, EV owners will get the full credit until then. Thus, those buying a Chevrolet Bolt EV between January 1 and the day the new rules come into effect, “sometime in March”, will get $7,500 in tax credits.
This is not exclusive to the Bolt, but applies to all electric vehicles selling on the U.S. market. Nevertheless, Chevrolet’s EV is in a unique position thanks to its very low price. Add the tax credit to it, and you’re looking at an $18,100 entry price, the lowest among new vehicles sold in the U.S. The price could go down even more when factoring in various state and local incentives, although not for all buyers.
At this price, the Bolt EV is almost as cheap as a Tesla Powerwall, while having three times the capacity. Even if you never drive it and use it as a backup battery for your house, it’s still a great deal. Nevertheless, the Bolt EV is a good car now, and it has many interesting features, especially considering its price. But you’ve got to seize the moment because the window of opportunity closes in March.
GM then threw everything it got into the game to see what sticks, and, lo and behold, the Bolt finally turned into a success story. Of course, this was helped by a hefty discount, not to mention various incentives offered to Bolt customers, including a home charger and charging credit with third-party charging networks. At an MSRP of $25,600, the deal was sweet enough that Hertz wanted to buy many EVs from GM.
Nevertheless, the deal should become even sweeter from January 1, once Chevy Bolt will once again qualify for a tax credit. The Inflation Reduction Act forgoes the sales quota of the previous tax credits awarded to buyers of electric vehicles. Instead, it mandates that the car and the battery be assembled in the U.S. and the critical battery materials be sourced from the U.S. or a country that has signed a free-trade agreement with the U.S. If the car’s battery fits only one of these two criteria, it only qualifies for half the credit.
Initially, GM has announced that Chevy Bolt buyers will qualify for a $3,750 tax credit once the IRA starts to produce effects. Nevertheless, as the Treasury has delayed until March the rules around the battery sourcing requirements, EV owners will get the full credit until then. Thus, those buying a Chevrolet Bolt EV between January 1 and the day the new rules come into effect, “sometime in March”, will get $7,500 in tax credits.
This is not exclusive to the Bolt, but applies to all electric vehicles selling on the U.S. market. Nevertheless, Chevrolet’s EV is in a unique position thanks to its very low price. Add the tax credit to it, and you’re looking at an $18,100 entry price, the lowest among new vehicles sold in the U.S. The price could go down even more when factoring in various state and local incentives, although not for all buyers.
At this price, the Bolt EV is almost as cheap as a Tesla Powerwall, while having three times the capacity. Even if you never drive it and use it as a backup battery for your house, it’s still a great deal. Nevertheless, the Bolt EV is a good car now, and it has many interesting features, especially considering its price. But you’ve got to seize the moment because the window of opportunity closes in March.
Google News