WASHINGTON — The pool of used electric vehicles eligible for a tax credit taking effect next year could be slim to start out, with consumer choices — at least in the near term — limited to models with shorter battery range that were built mainly to meet tougher emissions regulations, several industry experts and dealers told Automotive News.
The Inflation Reduction Act includes, for the first time, a tax credit for income-qualified buyers that's equal to 30 percent of the total cost of a used battery-electric, plug-in hybrid or fuel cell vehicle, and capped at $4,000. Vehicles must be at least two model years old and cost $25,000 or less, but they are not subject to the same stringent sourcing and assembly requirements as the revamped tax credit for new EVs.
While it sounds great in theory, in practice it could take between three and five years before the credit is used regularly by consumers, said Ivan Drury, director of insights at Edmunds.
"[It's] g…