The new rules governing the federal tax credit for electric vehicles come into effect on Tuesday, throwing some vehicles completely out of the bracket and trimming the benefits for others.
What Happened: New guidelines announced by the Internal Revenue Service surrounding the $7,500 in tax credit related to electric vehicles mandate that a certain percentage of battery materials and components be sourced from North America or a U.S. trading partner.
Other guidelines — which require the price of an SUV to be under $80,000 and the price of a car to be under $55,000; vehicles to be manufactured in North America; and individuals to have a modified adjusted gross income limit of $150,000 — have already taken effect.
The IRS is expected to release an updated list of vehicles that are eligible for the tax credit based on the updated rules on Tuesday.
Under the updated rules, the $7,500 tax credit will be split into two separate $3,750 credits. Starting Tuesday, vehicles could qualify for both, one or none of the credits, NPR reported.
Based on its conversations with automakers, the outlet also drew up a list of potential vehicles that could benefit from the updated guidelines.
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EVs that qualify for full $7,500 credit:
- General Motors Corp. GM Cadillac Lyriq
- Chevy Silverado EV
- Tesla, Inc. TSLA Model 3 Performance variant
- Ford Motor Co. F F-150 Lightning EV pickup truck
- Ford’s Lincoln Aviator Grand Touring
- GM’s Chrysler Pacifica plug-in hybrid
EVs that could qualify either for a $3,750 or $7,500 credit:
- GM’s Chevy Bolt
- Chevy Bolt EUV
- Volkswagen AG VWAGY ID.4 vehicles made in Tennessee only
EVs that will likely qualify for a $3,750 credit:
- Tesla Model 3 RWD
- Ford Mustang Mach-E
- Ford E-Transit
- Ford Escape plug-in hybrid
- Ford Lincoln Corsair Grand Touring plug-in hybrid
- Stellantis N.V.’s STLA Jeep Wrangler 4xe
- Jeep Grand Cherokee 4xe
EVs that won’t be eligible for any of the tax credits:
- Geely Automotive Holdings Limited’s GELYF Volvo S60 plug-in hybrid, extended range and T8 recharge
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
EVs that are currently eligible for the full credit but whose future eligibility status isn’t clear: