Sony Honda Mobility EV Plans Announced, EV Tax Credits Finally Outlined
Sony and Honda have paired up for an EV to be made in the US, which will help it qualify for new, stricter EV tax credit criteria.
There’s big news on the horizon as Honda and Sony have announced a collaboration on an upcoming EV. Sony Honda Mobility is a new joint venture from both powerhouse Japanese brands. Sales will begin in 2026, and the North American market will be the initial roll-out. Automotive News reports that the collaboration will be built in the US, in order to cater to EV tax incentives beneficial to one of Honda’s biggest markets.
Honda has been surprisingly slow to adapt to the EV game in recent years. While they do have the Prologue announced, their focus has been mainly hybrids, and even fuel cell cars. This alignment with Sony works well for both brands, however. Honda’s automotive manufacturing resources are arguably some of the best in the business, and Sony’s technology is a great addition. We could likely see the ability to network the car to Sony devices. Sony hasn’t been at the forefront of smartphones like Apple or Samsung, but this could help launch an unparalleled awareness campaign.
Cost limits, refund limits, and only a few select models. EV Tax Credits outlined.
In order to initiate momentum for EV sales, the US government has historically had tax credits. Up till this year, those tax credits had a very broad coverage. But with the introduction of the Inflation Reduction Act, some of those tax credits have criteria which is harder to meet. CNBC reports that tax credits are now non-refundable. For instance if your total tax liabilities are below $7,500.00, then that tax credit would be applied, and any remaining tax credit would be lost. CNBC also points out that high income individuals with higher tax liabilities may be the only ones to see the full benefit of the tax.
The list of cars also gets narrower, too. Cars have to be manufactured, built and have materials sourced in North America in order to qualify for the full $7,500 rebate. Any deviance from this would mean only a partial rebate is available. Additionally, auto manufacturers are only permitted to sell a certain number of EV cars with this credit annually. Tesla, for instance has no credits available for any remaining cars sold this year. Plus, the car has to cost under $80,000.00, all according to CNET. Makes sense why Sony Honda Mobility wants to build their car here, doesn’t it?
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Photos courtesy of CNBC, CNET