The Chevy Bolt EV has made its fair share of headlines since debuting in 2017, mostly having to do with its many recalls. However, right now the car is drawing attention for a more positive reason: The 2023 model, already the cheapest electric vehicle (EV) in the U.S., just got cheaper.
Thanks to the Inflation Reduction Act of 2022, parts of which aim to incentivize consumers to make greener choices, the IRS is providing a tax credit to purchasers of electric vehicles. New EVs are eligible for credits of up to $7,500 and used EVs, for up to $4,000. (Here is a list of new EVs that qualify for the full tax credit.)
How much is the 2023 Chevrolet Bolt EV?
After the massive 2021 Bolt EV recall, the Bolt received a lot of bad publicity, and shortly after the 2022 model launched, Chevy decided to slash its sticker price by $5,000. After the 2023 model launched, they announced yet another discount, this time worth $6,000. And this was before the IRS released their final tax credit plans for 2023.
In the wake of that announcement, GM raised the base price of the Bolt EV by $900 to $27,495, “due to ongoing industry-related pricing pressures,” according to an article from Green Car Reports. Still, if you’re eligible for the full tax credit, you can potentially pay a post-credit net price of $19,995.
Why you might need to buy sooner rather than later
Vehicles eligible for the full tax credit must be built and sourced in the U.S.—including, under the new requirements, their batteries. While guidelines for determining which vehicles’ batteries will and won’t meet those qualifications were initially expected by the end of 2022, the Treasury has delayed those determinations until at least March. This means that until this year’s guidelines are put in place, the Bolt still qualifies for the full credit, making it an even more affordable EV choice.
According to Electrek, there is a possibility that if it turns out the battery and minerals of the Bolt EV aren’t sourced in a way that meets the potentially stricter IRS rules, the maximum tax credit for the vehicle could drop to $3,75o, in March—or half of the total credit.
If you want to look deeper into the latest information from the IRS about the EV tax credit, check out the IRS’s FAQ.
Who qualifies for the clean vehicle tax credit?
Unfortunately, not all electric car purchases qualify for the EV tax credit.
To qualify for the tax credit, you have to purchase the vehicle for yourself (not for resale) and use it in the U.S. Apart from that, your adjusted gross income may not exceed $300,000 for married couples filing jointly, $225,000 for heads of households, and $150,000 for all other filers.
You can check the full details from the IRS here.
To get your tax credit, you must file Form 8936 with your tax return for the tax year and time you took possession of the EV (or as the IRS puts it, when the car was “placed in service”). As noted by Car and Driver, this means if you buy the car in February but do not have possession of it until after the IRS updates the tax credit rules in March, you will not qualify for the full $7,500.
The bottom line
If you’re planning on pulling the trigger on a new EV, remember that depending on which state you live, you might have additional electric vehicle incentives. So ask your dealer about your state.