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
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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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