Recent Updates May Impact Tax Credits for Popular Choices in the Electric Vehicle Market

One of the biggest incentives for buying an electric car is, of course, tax credits. If you buy an eligible EV, you can get up to $7,500 back in tax credits. Of course, not all cars qualify — and new rules placed by the Treasury Department mean that your choice of car might not qualify anymore.

Under new rules by the Treasury Department, there are a few brands of EVs that will lose out on tax credits. This is because the new rules mandate that for a car to be eligible for the credit, both the car and its battery need to be sourced from, and assembled, in North America. Any EV that sources minerals or components for its battery from other countries is not eligible for the credit. This means that if you buy a car from makers like Rivian, Nissan, BMW, or Volkswagen, you will be losing out on the credit.

EVs with tax credits (as of April 17, 2023):

• Cadillac LYRIQ, 2023-2024
• Chevrolet Blazer, 2023
• Chevrolet Bolt, 2022-2023
• Chevrolet Bolt, EUV 2022-2023
• Chevrolet Equinox, 2024
• Chevrolet Silverado, 2024
• Chrysler Pacifica PHEV, 2022-2023
• Ford E-Transit, 2022-2023
• Ford Escape Plug-in Hybrid, 2022-2023
• Ford F-150 Lightning, 2022-2023
• Jeep Grand Cherokee PHEV 4xe, 2022-2023
• Jeep Wrangler PHEV 4xe, 2022-2023
• Lincoln Aviator Grand Touring, 2022-2023
• Lincoln Corsair Grand Touring, 2022-2023
• Tesla Model 3 (some models), 2022-2023
• Tesla Model Y (some models), 2022-2023
• Tesla Model Y Performance, 2022-2023

There are still plenty of brands to choose from. Namely, you can still buy cars from Ford, General Motors, Tesla, Lincoln, Jeep, and Chrysler. Even then, only a few models from these brands will be eligible for the full $7,500 credit, and others, like the Mustang Mach-E or certain models of the Tesla Model 3, only qualify for half that credit because they don’t fulfill the sourcing requirements.

You can check the current list of models and the exact credit amounts at the Department of Energy’s website, found at the source link below.

Source: Department of Energy

Via: The Verge