The IRS has released a list of electric vehicles that are still eligible for the full $7,500 federal tax credit after strict new guidelines, which officially go into effect April 18. the list very In short, as only six electric vehicles now qualify under the new terms. The updated rules concern electric vehicle batteries and excluded China as an authorized trading partner, so we knew that the list of vehicles would shrink, since most electric vehicles use batteries manufactured in China or by Chinese companies.
If you want to get that full tax credit, choose from the Cadillac Lyric, Chevy Bolt, Chevy Bolt EUV, some Tesla Model 3, some Tesla Model Y, and Ford F-150 Lightning. Many EVs lose full balance going forward, such as the Nissan Leaf and Volkswagen ID 4. So check out the full list when buying your next car. $7,500 is nothing to sneeze at.
Electric vehicles converted from the full tax credit club may still qualify for a half credit of $3,750, as long as they meet certain requirements. Three PHEVs also qualify for the half credit and three more qualify for the full tax credit, including models made by Ford, Lincoln, Chrysler and Jeep. These credits are not about excluding hybrid technology and are all about making sure you get the components right.
Here’s how that breaks down. Battery components that are 50 percent manufactured or assembled in the United States of America qualify for the first half of $3,750, and if the company sources at least 40 percent of the critical metals from the United States or FTAs, a second of $3,750 Begins. If the company meets one or the other criterion, the car gets half credit.
While a list that drops down to just six cars makes a good headline, it should be strengthened as car manufacturers make changes to meet the rules. New electric vehicles that meet component sourcing criteria will be added to the list and others will be re-added as manufacturers open new factories in the United States and other approved countries. New business deals can also affect the list of approved vehicles over time. However, these rules are getting stricter over time. The batteries must be manufactured entirely in North America by 2029 to continue to be on the IRS’ good side and get the full $7,500 credit.
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”