Company owners may easily earn a $40K electric vehicle tax credit.

By The Exchange Team

Starting next year, businesses will be allowed to claim a tax credit for electric vehicles

Which should be easier to obtain than a similar credit for consumers buying "new clean" passenger cars.

President Joe Biden signed the Inflation Reduction Act on Aug. 16 to encourage Americans to buy electric cars, trucks, and other vehicles.

The rules essentially make the autos less expensive to purchase for recipients.

One tax exemption, for "new clean automobiles," has consumer-specific income limits and car-specific standards for production, battery-mineral procurement, and retail price.

Many cars may not match the initial conditions for the tax relief, according to some experts.

Businesses can claim the tax credit for new vehicles bought on or after Jan. 1, 2023. And It’s available for 10 years.