Drive American Act

The Drive American Act (S 2962) repeals existing tax credits for electric vehicles and alternative fuel vehicles while establishing a new "America First Vehicle Credit" for new vehicles manufactured in the United States. The new credit requires vehicles to meet specific domestic content requirements (60% regional value content and 25% labor value content), with price limits ($55,000-$80,000 depending on vehicle type) and income thresholds ($150,000-$300,000 based on filing status). The credit applies to vehicles placed in service after December 31, 2024, and expires in 2033. This bill directly affects consumers purchasing new vehicles and vehicle manufacturers seeking to qualify for the tax credit.