On December 1, the U.S. Department of the Treasury issued guidance to limit Chinese battery parts in EVs eligible for electric vehicle tax credits. Those rules went into effect on January 1, and the changes impacted dozens of EVs previously eligible. In fact, 43 models qualified for the full $7,500 tax credit last year. Now, only 19 fit the bill. That includes two vehicles from Chevrolet (Bolt EV and EUV), Chrysler’s Pacifica plug-in hybrid (PHEV) minivan, an SUV and truck from Ford, two Jeep PHEV models, a Lincoln, Rivian’s SUV and truck, and three Teslas.
The rules “pretty much directly target China,” says Inside EVs. China has dominated the battery supply chain over the years, so some cars have fallen off the list. However, while the U.S. Treasury Department set the deadline for submitting qualifying documentation as December 18, InsideEVs notes that several car companies were still entering submissions at the end of the year; it’s possible that more vehicles will be added to the list in the near future.
How the EV tax credit works
Starting January 1, 2024, the rebate eligibility and the amount can be settled at the dealership at the time of sale instead of having to wait until tax refunds come through. You have to be buying it for your own use and not for resale, and your modified adjusted gross income can’t exceed $300,000 for married couples, $225,000 for heads of households, or $150,000 for all other filers. The vehicles themselves must have a battery capacity of at least seven kilowatt hours and have a gross vehicle weight rating of less than 14,000 pounds.
Find the full list of vehicles on the 2024 list here. Some of those on the list, including every Rivian, come with only half the full credit, or $3,750, while others get the whole amount. One of the remaining vehicles eligible for the full $7,500 tax credit is Ford’s F-150 Lightning, a full-size pickup based on its popular gas-powered F-150. That’s good news…
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