The Inflation Reduction Act (IRA) was signed into law by President Biden on August 16, 2022, and will be the largest climate investment in U.S. history including historic EV provisions summarized below.
The following programs are all deemed programs for which EVs are eligible for funding. For tax credits, cost estimates were drawn from the Congressional Budget Office.
Big thanks to Larissa Koehler from EDF, Katherine Stainken from EC, and Katrina McLaughlin from WRI.
Last Updated: September 6 at 5:00PM EDT
| Section Number | Title | Description | Lead Agency | Funding | Funding Type |
| 13401 | Clean Vehicle Credit | Amends the tax credit to a $7,500 tax credit for new EVs, half of which if the vehicle is made with domestic battery and half if the vehicle is made with domestic critical minerals. On critical minerals, the requirement is such that the minerals must be extracted in the US or a country the US has a free trade agreement with or recycled in North America. This is based on a percentage of components that will increase over time, starting with 40 percent in 2024. Beginning in 2024 (battery) and 2025 (critical minerals), no percentage of the material can be extracted or processed in or by an entity of foreign concern (notably China). Capped at $150,000 for an individual, or up to $300,000 for a household. There are price caps on vehicles. In the case of a van, $80,000. In the case of a sport utility vehicle, $80,000. In the case of a pickup truck, $80,000. In the case of any other vehicle, $55,000. Eliminates the cap on the number of vehicles that can be sold (what was 200,000 per automaker) and the credit will be available at the point of sale. | Department of the Treasury | $7,541,000,000 | Credit |
| 13402 | Credit for Previously Owned Clean Vehicles | Creates a used vehicle tax credit of $4,000 or 30 percent of the vehicle sale price (whichever is lower) limited to $75,000 for single filer (or $150,000 for a joint return) income thresholds. The vehicle must be at least two years old and less than 14,000 pounds. The vehicle must cost less than $25,000, not have previously used the credit (by VIN), and be sold by a dealership. Individuals can only claim the credit once every three years. The credit can be used for FCEV, PHEV and BEVs. | Department of the Treasury | $1,347,000,000 | Credit |
| 13403 | Qualified Commercial Clean Vehicles | Creates a 30% credit for electric and other non gasoline/diesel trucks and 15% for combustion vehicles with at least 15 kWh battery. The credit is capped at $40,000 or the incremental cost of the vehicle, whichever is lower. The credit is capped at $7,500 for vehicles under 14,000 pounds. The credit is valid through 2032. | Department of the Treasury | $3,583,000,000 | Credit |
| 13404 | Alternative Fuel Refueling Property Credit | The existing tax credit (30C) had expired at the end of 2021. This program extends the credit through 2032 and raises the cap from $30,000 to $100,000. For projects that meet the prevailing wage requirement, multiply the credit amount by five. Only available in eligible census tracts – low income urban (the poverty rate for such a tract must be at least 20 percent) and rural communities where the median income is below the statewide median income. Includes 2 and 3 wheelers. | Department of the Treasury | $1,738,000,000 | Credit |
| 13501 | Extension of the Advanced Energy Project Credit | Funding for Advanced Energy Project Credit program extended to $10,000,000,000, with no more than $6,000,000,000 allocated to qualified investments that are not located within energy communities. | Department of the Treasury | $6,255,000,000 | Credit |
| 13502 | Advanced Manufacturing Production Credit | Creates advanced manufacturing production credits including $35 per kilowatt hour of capacity for battery cells. Meanwhile battery modules could qualify for a credit of $10 per kilowatt hour of capacity (or $45 in the case of a battery module which does not use battery cells), and 10 percent of the costs incurred for critical minerals and electrode active materials. | Department of the Treasury | $30,622,000,000 | Credit |
| 30002 | Improving Energy Efficiency or Water Efficiency or Climate Resilience of Affordable Housing | Loans for projects that improve energy or water efficiency, indoor air quality or sustainability, implement the use of low-emission technologies, materials, or processes, including zero-emission electricity generation, energy storage, or building electrification, or address climate resilience, of an eligible property. May include EVSE. | Department of Housing and Urban Development | $1,000,000,000 | Loan |
| 50141 | Funding for Department of Energy Loan Programs Office | Grants the Department of Energy Loan Programs Office $40 billion in loan authority and appropriates $3.6 billion for the cost of guaranteeing those loans and administrative expenses. | Department of Energy | $3,600,000,000 | Loan |
| 50142 | Advanced Technology Vehicle Manufacturing | Loan program to support reequipping, expanding, or establishing a manufacturing facility in the United States to produce, or for engineering integration performed in the United States of, advanced technology vehicles only if such advanced technology vehicles emit, under any possible operational mode or condition, low or zero exhaust emissions of greenhouse gases. | Department of Energy | $3,000,000,000 | Loan |
| 50143 | Domestic Manufacturing Conversion Grants | Provides grants for domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles. | Department of Energy | $2,000,000,000 | Grant |
| 60101 | Clean Heavy-Duty Vehicles | Funding to replace vehicles with a zero emission vehicle, build ZEV charging infrastructure, workforce development and training and planning and technical activities to support adoption of ZEVs. | Environmental Protection Agency | $1,000,000,000 | Grant, Rebate |
| 60102 | Grants to Reduce Air Pollution at Ports | Funding split between general assistance ($2.25 billion) and funding for non- attainment areas ($750 million) to purchase zero-emission port equipment or develop a climate plan. Equipment refers to human-operated equipment or human-maintained technology that produces zero emissions of any air pollutant that is listed pursuant to section and any greenhouse gas other than water vapor; or captures 100 percent of the emissions that are produced by an ocean-going vessel at berth.’ | Environmental Protection Agency | $3,000,000,000 | Grant |
| 60103 | Greenhouse Gas Reduction Fund | Supports any projects that reduce greenhouse gas emissions and includes $7 billion for zero emission technologies for low-income and disadvantaged communities and $8 billion for low income and disadvantaged communities. There will be a further $11.97 billion for general assistance. | Environmental Protection Agency | $27,000,000,000 | Grant |
| 60104 | Diesel Emissions Reductions | Funding to identify and reduce diesel emissions resulting from goods movement facilities, and vehicles servicing goods movement facilities, in low-income and disadvantaged communities to address the health impacts of such emissions on such communities. | Environmental Protection Agency | $60,000,000 | Grant, Rebate, Loan |
| 60105 | Funding to Address Air Pollution | Funding includes $5,000,000 to provide grants to States to adopt and implement greenhouse gas and zero-emission standards for mobile sources pursuant to section 177 of the Clean Air Act. The other funding, largely for monitoring air quality, is not listed here. | Environmental Protection Agency | $5,000,000 | Grant |
| 60106 | Funding to Address Air Pollution at Schools | Funding for grants and other activities to monitor and reduce air pollution and greenhouse gas emissions at schools in low-income and disadvantaged communities. Also as part of this, some support for technical assistance. | Environmental Protection Agency | $50,000,000 | Grant |
| 60114 | Climate Pollution Reduction Grants | Funding for planning and implementation grants to support programs, policies, measures, and projects that will achieve or facilitate the reduction of greenhouse gas air pollution. | Environmental Protection Agency | $5,000,000,000 | Grant |
| 60201 | Environmental and Climate Justice Block Grants | Funding (including some technical support) for investments in low- and zero-emission technologies and workforce development that help reduce greenhouse gas, among other things. | Environmental Protection Agency | $3,000,000,000 | Grant |
| 60501 | Neighborhood Access and Equity Grant Program | Funding is available including to support technologies, infrastructure, and activities to reduce surface transportation-related air pollution, including greenhouse gas emissions. | Department of Transportation | $3,045,100,000 | Grant |
| 70002 | United States Postal Service Clean Fleets | Funding for USPS vehicles ($1.29 billion) and charging ($1.71 billion). | General Services Administration | $3,000,000,000 | Grant |
This summary will be updated as needed. If you have anything to add, please get in touch: info@atlasevhub.com.