New rules governing the federal tax credit for electric vehicles go into effect Tuesday, taking some vehicles out of the category altogether and curtailing benefits for others.
What happened: New guidelines announced by the Internal Revenue Service around the $7,500 EV-related tax credit require that a certain percentage of battery materials and components be sourced from North America or from a US trading partner.
Other guidelines—which require the SUV to be priced under $80,000 and the vehicle to be priced under $55,000; cars to be built in North America; and individuals with an AGR of $150,000 – already activated.
The IRS is expected to release an updated list of vehicles eligible for the tax credit based on the updated rules on Tuesday.
Under the updated rules, the $7,500 tax credit will be divided into separate credits of $3,750. Starting Tuesday, vehicles can qualify for both, one-or-none credits, according to NPR mentioned.
Based on its conversations with automakers, the outlet has also put together a list of potential compounds that could benefit from the updated guidelines.
See also: The best stocks for electric cars
Electric vehicles eligible for a full credit of $7,500:
- General Motors Corporation. GM Cadillac Lyric
- Chevrolet Silverado EV
- Tesla, Inc. TSLA Model 3 performance variant
- Ford Motor Company F F-150 Lightning EV Pickup Truck
- Lincoln Aviator Grand Touring from Ford
- General Motors Chrysler Pacifica Plug-in Hybrid
Electric vehicles that can qualify for a $3,750 or $7,500 credit:
- General Motors Chevy Bolt
- Chevy Bolt EUV
- Volkswagen AG VWAGY ID.4 cars are made in Tennessee only
Electric vehicles likely to qualify for the $3,750 credit:
- Tesla Model 3 rear wheel drive
- Ford Mustang Mach-E
- Ford E Transit
- Ford Escape Hybrid
- Ford Lincoln Corsair Grand Touring Plug-in Hybrid
- Stellantis NV’s STLA jeep wrangler 4xe
- Jeep Grand Cherokee 4xe
Electric vehicles that do not qualify for any of the tax credits:
- Geely Auto Holdings Limited glyph Volvo S60 Hybrid, Extended Range, T8 Recharge
Check out more coverage of Benzinga Future Of Mobility by following this link.
Electric vehicles are currently eligible for the full credit but their future eligibility status is unclear:
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