The number of electric vehicle models eligible for a
consumer tax credit of as much as $7,500 fell sharply as new rules from the
Biden administration kicked in on Jan. 1.
Narrower criteria reduced the number of qualifying models to
13 from about two dozen, according to federal data from fueleconomy.gov. The
new rules exclude from the tax credit vehicles that use battery components made
by Chinese manufacturers.
Treasury Department spokeswoman Ashley Scaphite said the
government has been closely coordinating with companies on the new
restrictions, but that some companies had yet to submit data, which could lead
to additions to the list.
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“Automakers are adjusting their supply chains to ensure
buyers continue to be eligible for the new clean vehicle credit, partnering
with allies and bringing jobs and investment back to the United States,” she
said.
Treasury Department rules unveiled last month target battery
components made by any company that is subject to Chinese jurisdiction or is at
least 25% owned by the Chinese government. In 2025, the restrictions will
expand to include suppliers of key raw materials for batteries, such as nickel
and lithium.
Depending on factors such as battery component and part
manufacturing location, vehicles can either qualify for a $7,500 or $3,750 tax
credit.
Among the vehicles still eligible for the full or partial
consumer credit are the Model Y by Tesla, Rivian’s R1T pickup truck, Stellates’
Jeep Wrangler 4xe and Ford Motor’s F-150 Lightning pickup truck.
Models that lost access to the credit included Tesla’s
Cybertruck, and some versions of their Model 3, Nissan’s Leaf, Ford’s E-Transit
van, and General Motors’ electric Blazer and Silverado.
Tax-credit eligible EV and hybrid models
The following 2024-model vehicles currently qualify for
federal tax credits as long as the manufacturer-suggested price is less than
$55,000 for cars or $80,000 for trucks, SUVs and vans.
– Chrysler Pacifica PHEV
– Ford Escape Plug-In Hybrid
– Ford F-150 Lightning
– Jeep Grand Cherokee PHEV 4xe
– Jeep Wrangler PHEV 4xe
– Lincoln Corsair Grand Touring
– Rivian R1S SUV
– Rivian R1T truck
– Telsa Model 3
– Telsa Model X
– Tesla Model Y
Chevy’s 2023 Bolt EV and Bolt EUV continue to qualify for
the tax credit as well. Additional information on specific models can be found
at https://www.fueleconomy.gov/feg/tax2023.shtml.
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