Some EVs to Lose Tax Credit Status
Updated rules restrict eligibility due to materials sourced in countries the U.S. wants to distance from.
The Ford F-150 Lightning will maintain eligibility for the full $7,500 tax credit.
IMAGE: Ford
Ford and General Motors said they expect some of the electric-vehicle models will at least temporarily lose eligibility for a federal tax credit after the new year due to stricter limits.
Ford said its Mach-E and Lincoln Aviator Grand Touring hybrid will no longer be eligible for a credit but that its F-150 Lightning will keep the full $7,500 tax break, according to news reports.
GM said its Cadillac Lyriq and Chevrolet Blazer won’t be eligible after the new year. Its Chevrolet Bolt EV will continue to be eligible.
The loss of eligibility is due to some EV materials being sourced in overseas markets the U.S. has barred as EV component sources. The Biden administration has enacted such restrictions in order to limit U.S. reliance on some overseas markets, particularly China.
The credits are intended to spur EV adoption to help ease climate-degrading pollution and to increase domestic electric-vehicle component manufacturing and sourcing for greater independence.
Tesla has said some of its models will also lose eligibility under the updates rules.
Originally posted on Auto Dealer Today
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