Newselectric vehicles, tax credits
Jan 02, 2024 07:51 AM EST
New battery sourcing regulations went into effect on Monday, which resulted in the loss of tax credits of up to $7,500 for a number of electric cars, including the Nissan Leaf, Tesla Cybertruck All-Wheel Drive, select Tesla Model 3s, and Chevrolet Blazer EV, the U.S. stated Treasury.
To shift the supply chain for electric vehicles in the United States away from China, the Treasury released recommendations in December that included additional restrictions for the procurement of batteries. They become operative on Monday.
The quantity of EV vehicles that meet U.S. from 43 to 19, EV tax credits were lost. These numbers comprise various iterations of the same car model. According to Treasury, the list may vary as some manufacturers have not yet submitted data on qualifying automobiles.
On its website, Tesla stated that "Cybertruck is likely to qualify for the federal tax credit later in 2024." The company did not immediately respond to a request for comment on Monday.
Under the new regulations, purchasers can claim a $7,500 tax credit at the moment of sale at a dealership that is a participating dealer. The car price and the buyer's income are limited by the tax credit.
The cars that were no longer eligible for tax credits include the Cadillac Lyriq, Ford E-Transit, BMW X5 xDrive50e, Volkswagen ID.4, Audi Q5 PHEV 55, and Tesla Model 3 Rear Wheel Drive.
Following January 1, Volkswagen stated on Monday that it "is in the process of confirming eligibility for a federal EV tax credit for vehicles".
As stated by Nissan, it is collaborating with suppliers to ensure that they fulfill the evolving standards "and regain tax credit eligibility for the Nissan Leaf in the future."
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According to the Treasury, "automakers are adjusting their supply chains to ensure buyers continue to be eligible for the new clean vehicle credit, partnering with allies and bringing jobs and investment back to the United States."
Ford Motor announced last month that while the $3,750 tax credit would no longer be available for its E-Transit, Mach-E, and Lincoln Aviator Grand Touring plug-in hybrids, it would still be available for the F-150 EV Lighting and Lincoln Corsair Grand Touring.
With the exception of the Chevrolet Bolt, General Motors said that all of its EVs will temporarily lose their eligibility. The Lyriq and Blazer EVs are losing the credit due to two small components.
Following a change in sourcing, GM anticipates that the Lyriq and Blazer EV will be eligible again in early 2024. Additionally, GM stated that Cadillac OPTIQ, Chevrolet Equinox EV, GMC Sierra EV, and Silverado EV built "after the sourcing change will be eligible for the full incentive."
The EV tax credit was changed by the 2022 Inflation Reduction Act law, which eliminated approximately 70% of the models that were previously eligible by requiring cars to be produced in North America in order to be eligible for any tax credits.
Tesla revealed in December that the federal tax incentives for its Model 3 Long Range and Rear-Wheel Drive vehicles will expire on January 1. The $7,500 credit is kept for the Model 3 Performance.
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