As of January 1, several electric vehicle models, including the Nissan Leaf, Tesla Cybertruck All-Wheel Drive, specific Tesla Model 3 variants, and the Chevrolet Blazer EV, are no longer eligible for tax credits of up to $7,500 due to revised battery sourcing rules implemented by the U.S. Treasury. The updated guidelines aim to redirect the electric vehicle supply chain away from reliance on China.
The adjustments now permit buyers to claim tax credits of up to $7,500 at the dealership during purchase, subject to specific price and buyer income criteria.
Various models, such as the Volkswagen ID.4, certain Tesla Model 3 and Cybertruck versions, BMW X5 xDrive50e, Audi Q5 PHEV 55, Cadillac Lyriq, and Ford E-Transit, have lost eligibility for these tax credits. However, some automakers like Volkswagen are working towards ensuring their upcoming models meet the new criteria.
Nissan is also aiming to realign its supply chain to qualify for tax credits again in the future, while other manufacturers, including Ford and General Motors, have seen shifts in tax credit eligibility for certain models due to sourcing components.
The revised EV tax credit requirements mandate North American assembly for qualification, leading to the exclusion of numerous previously eligible models, an outcome stemming from the 2022 Inflation Reduction Act.
Tesla had earlier revealed that specific variants of its Model 3 would no longer be eligible for federal tax credits as of January 1, with only the Model 3 Performance retaining the $7,500 credit.
----------The article is excerpted from REUTERS.