These electric vehicles are eligible for either a full $7,500 credit or a partial credit of $3,750 under the tougher eligibility rules. Nine previously eligible models would no longer qualify, according to an updated list released Monday.
Only 10 electric vehicle models will qualify for a full $7,500 tax credit when increasingly stringent critical mineral and battery component sourcing requirements take effect Tuesday.
Seven models are eligible for a partial credit of $3,750 under the tougher eligibility rules, while nine previously eligible models would no longer qualify, according to an updated list released Monday.
Under the Inflation Reduction Act, buyers who meet certain income thresholds can get a tax credit of up to $7,500 for North American-assembled new EVs that also meet sticker price restrictions.
Starting Tuesday, the credit will be split in two, with $3,750 for EVs that have at least 40 percent of the value of the battery’s critical minerals extracted or processed in the U.S. or in a country where the U.S. has a free-trade agreement, or from materials that were recycled in North America. Another $3,750 is available if at least half of the value of the EV’s battery components are made or assembled in North America.
Those percentages ramp up over time, maxing out at 80 percent in 2027 for minerals and 100 percent in 2029 for battery components.
Despite those restrictions, consumers looking to purchase EVs will still have credit-eligible options in the near term, while incentivizing automakers and their battery partners to continue ramping up U.S. production, a Biden administration official said.
Nearly 65 percent of EV sales in the first quarter of 2023 qualified for the credit under the North American assembly and sticker price requirements, according to a preliminary analysis by the administration. More than 90 percent of those previously eligible first-quarter sales remain eligible under the EV battery sourcing requirements, the analysis found.
$7,500 credit
2022-23 Chrysler Pacifica Plug-in Hybrid
2022-23 Ford F-150 Lightning (Standard and Extended Range Battery)
2022-23 Lincoln Aviator Grand Touring
2022-23 Chevrolet Bolt and Bolt EUV
2023-24 Cadillac Lyriq
2024 Chevrolet Silverado
2024 Chevrolet Blazer
2024 Chevrolet Equinox
2022-23 Tesla Model 3 (Performance)*
2022-23 Tesla Model Y (All-Wheel Drive)
2022-23 Tesla Model Y (Long Range All-Wheel Drive)
2022 Tesla Model Y (Performance)
$3,750 credit
2022-23 Jeep Wrangler Plug-in Hybrid 4xe
2022-23 Grand Cherokee Plug-in Hybrid 4xe
2022-23 Ford E-Transit
2022-23 Ford Mustang Mach-E (Standard and Extended Range Battery)
2022-23 Ford Escape Plug-in Hybrid
2022-23 Lincoln Corsair Grand Touring
2022-23 Tesla Model 3 (Standard Range Rear-Wheel Drive)*
*The Tesla Model 3 is double counted because it can qualify for a full or partial credit depending on the variant.
Vehicles no longer eligible
2023 Audi Q5 TFSI e Quattro Plug-in Hybrid
2021-23 BMW 330e Plug-in Hybrid
2021-23 BMW X5 xDrive45e Plug-in Hybrid
2023-24 Genesis GV70
2021-23 Nissan Leaf (multiple variants)
2022-23 Rivian R1S
2022-23 Rivian R1T
2023 VW ID4 (multiple variants)
2022-23 Volvo S60 (multiple variants)