The Inflation Reduction Act (IRA) may be the largest climate change investment ever. A new working paper explores the IRA’s electric vehicle (EV) tax credits, which could cost US taxpayers $70 to $390 billion. The study explores how these credits have affected vehicle markets; how the credits could generate larger benefits if targeted at the cleanest EVs; and how such “Buy American” and the “leasing loophole” impact domestic and foreign EV producers.The Inflation Reduction Act (IRA) may be the largest climate change investment ever. A new working paper explores the IRA’s electric vehicle (EV) tax credits, which could cost US taxpayers $70 to $390 billion. The study explores how these credits have affected vehicle markets; how the credits could generate larger benefits if targeted at the cleanest EVs; and how such “Buy American” and the “leasing loophole” impact domestic and foreign EV producers.