Credit-Qualifying EV Models Winnowed
Just 16 are eligible for federal tax breaks, some for just half the full amount.
Chrysler's Pacifica hybrid is among the limited list of models that qualify for the tax credits.
IMAGE: Chrysler
A much shorter list of electric vehicles still qualify for federal tax credits after new restrictions took effect today.
Requirements on EV battery sourcing narrowed the list of qualified vehicles to just 16 models, all domestically made, and 10 of which qualify for the full $7,500 in credits. Nine other models lost their eligibility.
The Treasury Department issued guidance late last month that added battery material sourcing requirements to tax credit limits that require sourcing, processing or recycling of battery materials to be centered in North America or a free-trade partner of the U.S.
The eligible models are made by Ford, General Motors, Stellantis and Tesla.
Buyers’ incomes and purchased model prices must be under particular dollar limits in order to qualify for the credits, which are intended to encourage EV adoption. The new limits, though, are designed to build North American EV sourcing and production to reverse dependence on Chinese suppliers.
Until now, most domestically made models qualified for the credits.
To learn which models qualify for credits and the credit total, visit fueleconomy.gov.
Originally posted on Auto Dealer Today
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