GM, Ford, Stellantis, Tesla qualify for US EV tax credits
General Motors, Ford, Stellantis and Tesla are the only automakers with electric vehicles that qualify for full EV tax credits in 2023 under the federal Inflation Reduction Act, Kallanish reports.
A total of 11 EV models qualify for both tax credits that total $7,500: Cadillac Lyriq, Chevrolet Silverado EV, Chevrolet Bolt, Chevrolet Bolt EUV, Chevrolet Blazer, Chevrolet Equinox EV, Chrysler Pacifica PHEV, Ford F-150 Lightning, Lincoln Aviator Grand Touring, Tesla Model Y (AWD, Long Range AWD and 2022 Performance) and Tesla Model 3 (Performance).
To be eligible for a $7,500 credit, vehicles must meet sourcing requirements for both the critical minerals and battery components in the vehicle.
Vehicles qualifying for $3,750 in credits are the Ford E-Transit, Ford Escape plug-in hybrid, Jeep Wrangler 4xe, Jeep Grand Cherokee PHEV 4xe, Lincoln Corsair Grand Touring plug-in hybrid, Ford Mustang Mach-E and Tesla Model 3 (standard range RWD).
Automakers Volkswagen, BMW, Nissan, Rivian, Hyundai, Kia and Volvo Cars failed to qualify for the federal tax credits under the latest rules released on Monday by the US Treasury Department and the Internal Revenue Service. Many vehicles failed to qualify because they were not assembled in North America, as is now required to claim the credits. Several automakers told Reuters that they are working to qualify for the credits.
Observers said that 90% of the models that had qualified for the credits before 18 April still qualify for them, with the majority eligible for the full $7,500 credit. The credits are designed to encourage Americans to buy environmentally friendly EVs and to reduce US dependency on foreign countries. They run to 2032.
The rules had been finalised last month, but the official list of qualifying models was just unveiled by the federal agencies. Vehicles placed in service on or after 18 April 2023 fall under the new tax rules. Information on the credits and qualifying vehicles is available at www.FuelEconomy.gov.
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