As new regulations from the Biden administration took effect on January 1, the number of electric vehicle (EV) models eligible for consumer tax credits up to $7,500 has significantly decreased.
The more stringent criteria have reduced the list of qualifying models to 13, a stark drop from the approximately two dozen models eligible last year, according to data from fueleconomy.gov.
The Treasury Department stated that the government is actively
coordinating with automotive companies regarding these new restrictions. It noted that some companies had not yet submitted the necessary data, suggesting the possibility of future additions to the list of eligible vehicles.
Vehicles that are eligible for the full credit include Tesla’s Model 3 performance, Model X and Model Y. Rivian’s R1T and R1S made to the list, while both Chevrolet Bolt EV and EUV made the cut. Ford’s F-150 Lightning and Escape plug-in hybrid are also eligible for full credit. Stellantis’ Jeep Wrangler 4xe and Grand Cherokee PHEV 4xe qualified as well as Chrysler Pacifica PHEV and Lincoln Corsair Grand Touring.
Compared to last year, several models have lost access to the credit, including Tesla’s Cybertruck, select versions of the Model 3, Nissan’s Leaf, Ford’s E-Transit, and General Motors’ electric Blazer and Silverado.
These changes, part of President Joe Biden’s climate law, are a direct result of new Treasury Department rules targeting battery components manufactured by companies under Chinese jurisdiction or those with at least 25% ownership by the Chinese government.
The rules are set to further tighten in 2025, extending to suppliers of essential raw materials for batteries like nickel and lithium.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
