The Treasury Department said several electric vehicles would no longer qualify for the $7,500 tax credit under the new rules for battery sourcing.
The new rules went into effect on Tuesday, April 18. Vehicles losing the $7,500 tax credit include models from BMW, Hyundai, Nissan, Rivian, Volkswagen, and Volvo.
- Tesla’s Model 3 qualifies for only half the amount of the tax credit; however, other Tesla models are still eligible for the full $7,500.
- Other vehicles that qualify for the full tax credit include all General Motors EVs. Ford and Stellantis EVs saw the credit on most of their models halved to $3,750, though the Ford F-150 Lightning still qualifies for the full amount.
- The new rules aim to reduce the U.S.’s dependence on China for EV battery parts.
- The average EV in the U.S. costs about $58,600.