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Last week, the IRS updated the EV tax credit with new battery sourcing requirements set to go into place on April 17, with the effect of lowering purchase credit amounts for many new EVs.

But since the law defines individual and commercial credits differently, those requirements – along with MSRP and income requirements – can be bypassed on consumer-leased vehicles.

The Inflation Reduction Act changed the way EV tax credits are defined, making them simultaneously more complicated and more restrictive but also increasing their availability to more total vehicles in the long run.

There are a lot of new requirements, including maximum MSRP (which differs for cars and trucks/SUVs), income limits for taxpayers, and new battery requirements. Plus, cars need to be assembled in North America to qualify. This means several vehicles no longer get a tax credit after the changes last August.

The tax credit is also nonrefundable, which means that taxpayers need to make enough money to have $7,500 of tax liability to be reduced, but not enough to be above the income limit. Additionally, taxpayers need to wait until they file their taxes in order to take advantage of the credit, which means they have to front the $7,500 and get it back later. But both of these downsides will be fixed next year when the tax credit is due to become available upfront at the point of sale.

“One simple trick” to bypass tax credit restrictions

But all of these complications can seemingly be avoided with one simple trick! – leasing.

Per an IRS note from December, EVs can avoid the foreign-assembly restriction of the law if they are leased, not purchased. This interpretation was originally pushed for by South Korean automakers who felt jilted by the domestic assembly provisions of the Inflation Reduction Act. Hyundai and Kia have been the best-selling non-American EV brands in the US with their excellent Ioniq 5 and EV6 (built on the E-GMP platform), so these changes threatened to take the wind out of their sails (and sales).

The reason for this is due to two different sections of the law: 30D and 45W. Section 30D deals with individual purchase credits, and 45W deals with commercial credits. One is meant to stimulate personal vehicle purchases, while the other is intended to stimulate large commercial EVs like buses and dump trucks but also smaller vehicles for purchase or lease in commercial fleets.

All of the aforementioned restrictions are only present in section 30D of the law, not section 45W. Commercial vehicles can be over 80k MSRP, they can be assembled outside of NA, their battery sourcing isn’t as controlled, and buyers can make more than $150k income.

The “loophole” comes in due to the IRS’ December interpretation of how leases are categorized. IRS states in their fact sheet (topic G, Q5) that businesses that lease vehicles are allowed to claim the commercial EV tax credit for each leased vehicle. This means that as long as the vehicle fulfills the relatively minor requirements of 45W (and is a “bona fide lease” as laid out in Q6 of the same fact sheet), then a lessor (i.e., a dealership) can file for the $7,500 EV tax credit. This applies regardless of whether the lessee is a business or an individual.

Presumably, then, the lessor would be able to pass along those savings in the form of reduced lease payments.

Some brands already offering $7,500 off leases

So far, this particular workaround has not gotten much press. Since these credits are filed for on the back end by dealerships and don’t really require action from the consumer, it’s up to dealers to notice this and offer lease discounts.

But consumers should still know about these deals, as EVs are often cheaper than their MSRP might suggest. For many years, under the old credit, you’d routinely see an EV with around $30k MSRP leasing for approximately $199 per month.

A few manufacturers have already started offering lease discounts. Hyundai is offering significant discounts on the Hyundai Kona EV and the excellent Hyundai Ioniq 5. Polestar has a “Clean Vehicle Lease Rebate” on the Polestar 2 (which it says will expire May 1, though there is nothing in the law suggesting that will happen), and Lucid offers $7,500 off on leases as well. Tesla’s head of policy recently acknowledged that the law allows for this interpretation, but Tesla hasn’t announced any specific lease discount.

As word gets out about this workaround, we would hope to see more companies offer lease discounts and for EV leasing to perhaps become more prominent, especially among those brands that don’t qualify for the full EV tax credit. For example, the Chevy Bolt EV and Bolt EUV, the Ford Mach-E, E-Transit, Escape PHEV, and Corsair PHEV, and the standard range Tesla Model 3 are all expected to have their credit amounts reduced come April 17.

But for all of these cars, due to the way the commercial tax credit works, it looks like leasing could give access to the full $7,500. It’s just on the dealers to file for it and pass it along to the consumer.

However, given that the EV market is still impacted by high demand and low availability, some brands and dealers may think they don’t need to pass along these savings because they’ll be able to sell or lease cars regardless to a populace that ravenously demands the limited available supply. We’re not seeing those “$199 per month” EV lease deals that we used to see (and which we catalog here on Electrek) because EV demand is just so high right now.

Hopefully, if EV demand starts to normalize, this will be reflected in EV lease prices. Then, we might see some big growth in EV leasing as consumers see that better deals are available.

But EV demand might not normalize until ICE cars die out, which is a trend we’re seeing signs of in China right now and which could repeat in other markets as well.

Electrek’s Take

We noticed this “loophole,” if you want to call it that, a little while ago but thought it was too good to be true. If leasing means the foreign assembly provision could be bypassed, as we learned in the IRS note in December, then why can’t other 30D provisions be worked around?

But this isn’t necessarily solely a positive development. On the one hand, it makes the process much simpler for the consumer since you can just lease any car, and the tax credit gets dealt with by someone else. No need for a fancy flowchart; just go in and get a cheaper lease.

But on the other hand, it also undermines the whole point of the law. The IRA was passed to encourage domestic manufacturing, particularly of green vehicles. And it has done so – the Biden Administration says that $45 billion in EV manufacturing investments have been made since the law was passed, and it looks like there’s more to come.

These boosts in manufacturing are important, because as mentioned above, EV supply lags far behind EV demand, and I believe the best way to accelerate EV adoption is to actually start building them. Knowledge of this workaround could jeopardize the strides we’ve made in EV manufacturing commitments.

If companies can easily get around those domestic assembly provisions with a lease, then that could give them less incentive to accelerate their domestic EV manufacturing plans. US Senator Joe Manchin, who was instrumental in crafting the domestic assembly provisions of the IRA and getting the law passed in the first place, has spoken out against this lenient interpretation of the commercial credit, even calling it a “betrayal.”

That said, leasing makes up a small percentage of the car market (less than one-fifth) and an even smaller percentage of the EV market (about one-tenth). Many consumers just would rather not lease. There are plenty of people who could get away with – and even save lots of money from – not owning a car. But part of the psychological draw of owning a car is the idea of freedom that it gives you, and leases take away some of that freedom – it’s not your car, and you’re not allowed to use it exactly how you want: mileage restrictions, worries about penalties for scratches or dings at lease end, etc.

So there’s still some incentive for manufacturers to announce more car and battery factories since it’s unlikely that leasing will make up a majority of EV sales, even with big incentives. Even when lease deals were rampant, they still didn’t make up a majority of EV sales.

Of course, demand is still much higher than supply. So companies should be announcing car factories and battery factories everywhere all the time. Nobody is ramping up fast enough, so they should all take any excuse to ramp up faster, both due to the market and the ever-important threat of climate change.

So even though everything about these tax credits has been somewhat, let’s say, “inartful” in its implementation, I think, on the whole, we’ve gotten close to an end-point of a law that expands the availability of tax credits to more people, while still also encouraging increased domestic manufacturing and a multipolar EV manufacturing environment. This will have beneficial aspects both for US EV adoption and for the industry in general.

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Ride1Up Vorsa review: An affordable, do-everything e-bike for the masses

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Ride1Up Vorsa review: An affordable, do-everything e-bike for the masses

Ride1Up has carved out a name for itself in the e-bike world by delivering sleek, well-equipped electric bikes that punch well above their price tag. Their latest model, the Ride1Up Vorsa, takes that formula and beefs it up into something more versatile… literally.

The Vorsa is Ride1Up’s answer to the growing demand for SUV-style e-bikes – those do-it-all electric rides that can handle your commute, your grocery runs, your kid-hauling trailer, and your backroad detours without flinching. And at $1,595, the Vorsa might just be the most affordable ticket into that category right now – at least for an e-bike that still includes a pile of interesting and high-value tech features.

To see what I mean, check out my video review of the Ride1Up Vorsa below. Then keep reading for the full details on this highly versatile ride.

Ride1Up Vorsa video review

Ride1Up Vorsa Tech Specs

  • Motor: 750W and 95Nm rear hub motor
  • Top speed: 28 mph (45 km/h) on pedal assist or 20 mph (32 km/h) on throttle
  • Range: 30-60 miles (48-96 km)
  • Battery: 48V 15Ah (720Wh) UL-certified with Samsung 50GB cells
  • Weight: 65 lb (29.5 kg)
  • Load Capacity: 440 lb (200 kg)
  • Frame: Aluminum alloy 6061
  • Brakes: Star Union hydraulic dual-piston disc brakes on 203 mm (front) and 180 mm (rear) rotors
  • Extras: Shimano Acera 8-speed derailleur, new highly-detailed color LCD display, two frame styles of step-over and step-thru, semi-integrated rear rack with optional rack extender, and a wide range of other accessories
  • Price: $1,595

Goes anywhere, does almost anything

E-bikes are getting more versatile, but the Vorsa takes versatility to the extreme.

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This is already a powerful e-bike capable of 28+ mph Class 3 speeds (though ships out of the box with a Class 2 setting of 20 mph) from its 750W motor capable of a heart-thumping 95 Nm of torque. That means its a fast hill climber and ready for just about any challenge that a high-performance e-bike should be.

But then, on top of that, the bike’s design allows it to tackle very different styles of riding, from cargo needs with its semi-integrated rear rack to touring and trekking style rides with its 27.5×2.6″ Schwalbe touring tires.

That means the same e-bike you use to take the kids to school at in the morning can transform into your commuter bike to work and then into your single-track bike for weekend recreational riding.

And with a 720 Wh battery (UL-compliant, no less), you’ll have plenty of charge to do all of those things in the same day!

It’s par for the course at Ride1Up, something I learned when touring their factory last year and seeing firsthand just how important a combination of quality, practicality, and affordability are to the company. It’s obvious that the folks at Ride1Up want to give us riders as much battery, as much performance, and as much versatility as they can while keeping the price reasonable.

Packed with tech, but only the good stuff

It’s fun to see more tech enter the e-bike space, but some companies don’t seem to understand that more isn’t always better. It’s only a net benefit to me if it’s stuff I’ll actually use. Ride1Up has eschewed smartphone apps and other things that don’t add much usability and has now given us the stuff that actually matters.

For example, the new display on the Vorsa is much more involved, with more than just a higher-resolution color display. It shows metrics that actually mean something to me, like how much time I spend in different riding modes. This helped remind me to not only use the highest power modes but also drop the pedal assist down a few notches for more exercise.

There’s also built-in Apple FindMy tracking now, which is a HUGE added value for me. It’s not a guarantee that you’ll get your bike back if it’s stolen, but it’s a major headstart in recovering it. It may not be as helpful for you Android phone users out there, but for us iPhone folks who are held captive by Apple’s golden handcuffs, it’s a great system for finding just about anything, especially your e-bike. From my phone, I can see where my Vorsa is, and I can find it if someone tries to abscond with it.

Then there’s the new torque sensor from MiVice, which is honestly one of the most responsive torque sensors I’ve ever had the pleasure of pedaling. It’s fast, and it feels like my legs are just extra strong that day. Throttle-only riders won’t really benefit from it, and in fact may want to use the sensor selector option to put the bike back in cadence sensor mode to enable more of a ‘foot throttle’ feel, but most of us will prefer the torque sensor because of how impressively dialed in it feels.

Hardware design

That technology is nice, but it needs to complement good hardware, not replace it. In this case, the design of the Ride1Up Vorsa complements the tech, adding versatility and value without jacking up the price.

The semi-integrated rack is a really cool design that helps the bike achieve its 440-lb weight capacity. There’s even a rack extender that helps turn the bike into a longtail cargo bike, even if that tail sticks out in a slightly funny way.

Then there are the other nice upgrades over the usual suspects we see on $1,500-range electric bikes. Instead of plastic fenders, we get nice metal alloy fenders that look and feel better quality. Instead of a cheap 7-speed Shimano Altus derailleur, we get a nicer 8-speed Shimano Acera derailleur. Instead of a basic suspension fork, we get a longer travel 100mm fork. Instead of a compliance stem, we get an adjustable stem to dial in the handlebar angle to our liking. You name it, the upgrades are there.

The LED lighting, including the fender integrated lights, is also clearly higher quality than you’d expect on a value e-bike, making this an even higher value.

What’s not to like?

Don’t get me wrong, the Ride1Up Vorsa is great. It sets a new high watermark in what can be delivered at this price, especially considering the rampant inflation in e-bike prices brought on by new tariffs. But I can always complain about something, and so why stop now?

The Ride1Up Vorsa brings us a lot of cool tech and new hardware, but it comes at a cost, and that cost is weight. At 65-70 lb, depending on how many of the cool add-ons you install, the bike isn’t lightweight. You’ve got chunkier tires, a bigger battery, a more powerful motor, a more robust frame, a larger fork, metal fenders, and other parts that all add to the weight.

Next, Ride1Up has again played it incredibly conservatively with the color options. Your typical dark gray is there, then you get a fairly nice blue, and lastly, you’ve got a slightly confusing two-tone sage grayish-green option. There are no bright colors to choose from, which isn’t a departure for Ride1Up, but still a bit disappointing to me. Go wild, guys! Throw caution to the wind! Hit me with some color someday!

And lastly, Ride1Up continues to ship in smaller boxes that require the fork to be installed by the owner. This isn’t a complicated task when you’ve done it 100 times like it’s your job, which it is for me. But most people have done this zero times, and the ones who have can probably count the instances on one hand. This is an essential step in bike assembly and one that has very little margin for error, so most new owners would be advised to have a bike shop do it if they aren’t comfortable following Ride1Up’s clear and welcomed assembly video.

So I have my complaints like normal, but none are insurmountable. And to be honest, at $1,595, the price is so fair that I can overlook the limited color options and the longer at-home assembly. When it comes to the weight, that’s just the price we riders pay to have more performance and features included in our bikes.

I absolutely recommend the Ride1Up Vorsa to anyone looking for a ‘normal’ style e-bike (i.e., not a folder or a moped) but who wants the versatility to head in highly divergent directions, including everything from cargo hauling to recreational riding and daily commuting. It’s a winner and they stuck the landing on the Vorsa.

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Ford has a new plan to win over EV buyers overseas: Free chargers and other perks

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Ford has a new plan to win over EV buyers overseas: Free chargers and other perks

Ford is sweetening the deal for EV buyers in the UK with free home chargers and more, just as its best-selling car, the Puma, gets an electric upgrade. The new incentives are part of Ford’s push to boost EV sales and gain market share overseas.

Ford is giving free EV chargers to buyers in the UK

The “Ford Power Promise” was initially launched in the US last October. It includes a free Level 2 home charger with any Ford EV purchase, including the Mustang Mach-E and F-150 Lightning.

Ford will also cover the cost of standard installation, along with some other goodies to sweeten the deal, like 24/7 live EV support, roadside assistance, and an 8-year, 100,000-battery warranty.

The American automaker is now extending the offer as it looks to win back market share overseas. On Tuesday, Ford launched the Power Promise in the UK to help make owning an EV easier.

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Ford’s promo includes a free wall box home charger (with standard installation), an up to 10,000-mile home energy bonus, and an 8-year and 100,000-mile battery warranty.

Other incentives include a free five-year service plan, free five-year towing assistance, and access to over 33,000 public charging stations across the UK through Ford’s Blue Oval Charge Network.

Ford-electric-Puma-Gen-E
Ford electric Puma Gen-E (Source: Ford)

Saving time and money

The offer is available across Ford’s EV lineup, including the new electric Puma Gen-E. Ford’s electric car lineup in the UK includes the Explorer Electric, Mustang Mach-E, Capri EV, E-Tourneo Custom, E-Tourneo Courier, and the new electric Puma. If you already have a home charger, you can opt for a £500 ($650) cash bonus.

Ford-free-EV-charger-UK
Ford’s electric vehicles in Europe from left to right: Puma Gen-E, Explorer, Capri, and Mustang Mach-E (Source: Ford)

Ford EV buyers will also benefit from its partnership with Octopus Energy, the UK’s largest energy supplier. Using “Intelligent Octopus Go,” you can save up to 70% on energy costs by charging overnight (7p/kWh).

According to Ford, charging the new electric Puma Gen-E can cost as little as £3.23, or less than $5. Ford launched the Puma Gen-E, the EV version of its best-selling car in Europe, starting at just €36,900 ($38,800) in December. In the UK, the Puma Gen-E Select starts at £30,795 ($39,300).

Ford-free-EV-chargers-offer
(Source: Ford)

Since launching the program, Ford has extended the offer to Canada. In the US (and Canada), Ford’s Power Promise runs until June 30, 2025.

According to Ford’s research, the 2025 Mustang Mach-E eAWD extended-range battery can save $26 compared to filling up a gas tank. The 2025 Ford F-150 Lightning Lariat could save you up to $55 compared to a similar pickup.

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Solar is about to get hit with tariffs, but stockpiles give buyers opportunities

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Solar is about to get hit with tariffs, but stockpiles give buyers opportunities

The US solar industry is used to tariffs, but President Trump’s latest round of tariffs is still expected to wreak havoc, like in many other sectors.

But homeowners still have time to go solar, thanks to developers building solar panel stockpiles in the US.

During his first term, President Trump imposed many tariffs that affected the US solar industry.

Since then, the industry has adapted with some domestic solar module manufacturing, but most solar products still come from overseas. Chinese manufacturers moved some of their factories to other Asian countries to adapt, but now Trump’s sweeping tariffs also target those countries, like Vietnam.

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But solar developers, who have experience with tariffs, have been savvy enough to build stockpiles of solar panels in the US over the last year.

Some estimates put the current stockpile at 50 gigawatts, which is roughly what the US deployed last year. However, 50 GW does not include all the solar energy deployed in the US last year, residential, commercial, and utility-scale, and most of the stockpile is estimated to be equipment for rooftop solar.

Tariffs coming into effect tomorrow will certainly impact the industry, but the stockpiles are likely to reduce the impact and give homeowners more time to go solar this year without price increases or with smaller price increases.

The timing is good as US homeowners are increasingly turning to solar to reduce their energy costs, which are also expected to increase.

The trade wars started by Trump are increasing the electricity rates in states that get electricity from Canada.

The President is also expected to sign a new executive order boosting the nation’s coal industry this week. The order is expected to involve reductions in environmental requirements to help save coal plants due for retirement.

However, most coal plants are being retired because they are uncompetitive, not because of environmental concerns.

In addition to tariffs on solar panels and inverters imported from overseas, the new tariffs are expected to greatly increase the cost of home energy storage, which is often installed with rooftop solar power systems.

We previously reported that home battery packs, like Tesla’s Powerwall, use battery cells from China, which is about to be hit with massive new tariffs.

If you are interested in going solar, now is the time, and we suggest using EnergySage. It’s a free service that will enable you to get quotes and compare them without any hassle, and you only talk to someone when you are ready to move forward with your project. They work with a great number of solar installers and help you get the best price.

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