This year, only six electric cars will qualify for the $7,500 federal tax credit – a rebate offered by the government and applied to the price of new electric cars.
Fully electric cars that are still eligible for the full amount are the Chevrolet Bolt, the Ford F-150 Lightning and certain versions of the Tesla Model 3, Model X and Model Y.
One plug-in hybrid, the Chrysler Pacifica, is also still eligible for the full honor, according to the newspaper Latest information from the Internal Revenue Service (IRS).
Another 13 models get a partial discount – scroll down for the full list of 19 cars getting $7,500 or $3,750 off.
The new rules – mandated by the IRS and enforced by the Biden administration – are part of an effort to bring more of the EV battery supply chain to the US. Vehicles with batteries that are at least partially made in China are therefore excluded from full credit.
General Motors will be affected by the new rules — it will lose government credits on all but one of its cars — but said this week it will offer its own discounts on other electric cars.
Fully electric cars that are still eligible are the Chevrolet Bolt, the Ford F-150 Lightning, certain versions of the Tesla Model 3, Model X and Model Y
Vehicles move along the 2023 Chevrolet Bolt EV and EUV assembly line during the General Motors Orion Assembly on June 15, 2023 in Lake Orion, Michigan
Eligible cars must be assembled in North America and cannot contain battery components manufactured by “foreign entities of concern” – including China.
Some vehicles are still eligible for a $3,750 credit – half of the full amount – if the majority of battery components are assembled in North America and the materials come from the U.S. or an ally.
Specifically, at least 60 percent of battery components must be manufactured or assembled in North America and at least 50 percent of critical minerals must be mined or processed in the U.S. or in a country with which the country has a free trade agreement.
Alternatively, the minerals used must have been recycled in North America.
EVs eligible for partial credit include some sold by Ford, Jeep, Lincoln and Rivian.
Vehicles that will no longer be eligible at all starting this year include the Tesla Cybertruck, some versions of its Model 3, the Nissan Leaf, the Ford E-Transit and the electric Chevrolet Blazer and Silverado.
The changes affect all models put into service between January 1, 2024 and January 1, 2025.
Leading up to the new year, there was some confusion over which vehicles would be eligible, with Tesla updating its website in mid-December to indicate that not all Model 3 cars would be excluded based on its “current view of the new IRA Guidelines'.
Specific eligibility is also determined by the vehicle's MSRP, final assembly location, sourcing of battery components and/or minerals, and the buyer's income.
The Ford F-150 Lightning is still eligible for the full credit, but the automaker has said it will increase the price of its lowest-priced versions by $5,000 to $10,000.
According to GM, the Cadillac Lyriq lost its eligibility due to “small parts.” It will be on display at the North American International Auto Show in Detroit, Michigan, in September 2022
And on Wednesday, GM said it would provide its own incentives to cars that have lost their federal tax credits.
According to InsideEVsit told its dealers it would provide “$7,500 for all vehicles that became ineligible on January 1, 2024 as a result of the new guidelines.”
GM pointed out last month that — aside from the Chevrolet Bolt — all of its electric vehicles were no longer eligible and suggested that the Cadillac Lyriq and electric Chevrolet Blazer only lost the honor because of small parts.
In contrast, the Ford F-150 Lightning remains eligible for the full honor, but the automaker has said it will increase the price of its lowest-priced versions by $5,000 to $10,000 and reduce the prices of some premium models by as much as $7,000.
Last month, Ford said it would cut production of its all-electric F-150 in half due to declining demand for electric vehicles.
The companies Michigan The factory would now produce 1,600 units per week from this month – half its capacity of 3,200 units.
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