What to Know About EV Tax Credits in Biden’s New Climate Law

Some of the biggest wins under the just-enacted climate and tax package will benefit consumers looking to buy an electric vehicle: a reconfigured $7,500 credit for new vehicles and a new $4,000 tax credit for a used one.

The Inflation Reduction Act signed by President Joe Biden Tuesday extends the existing $7,500 tax credit for EV vehicle purchases and eliminates a barrier under the old credit that phased out incentives for any automaker once it sold 200,000 electric vehicles. The new law ends the 200,000-unit-per-manufacturer sales cap beginning in 2023.

As restructured under the law, the credit could be good ...