The Internal Revenue Service (IRS) has released an updated list of electric vehicles (EVs) that qualify for either a partial or full federal tax credit under the new rules that came into effect on April 18th. The Verge reported that the list is very small, with only six EVs eligible for the full $7,500 federal tax credit, while a number of other vehicles qualify for the $3,750 half credit.
As per the IRS’s revised list, eligible for the full tax credit are select configurations of Tesla Model 3 and Model Y, Cadillac Lyriq, Chevy Bolt EV, Chevy Bolt EUV, Ford E-Transit, and F-150 Lightning. The Ford Mustang Mach-E and Tesla Model 3 Standard Range RWD will only qualify for the $3,750 half credit.
Regrettably, certain electric vehicles such as the Nissan Leaf, BMW X5 xDrive45e, Genesis Electrified GV70, Rivian R1S, Rivian R1T, and Volkswagen ID.4 won’t receive any tax credit. Nonetheless, according to Albert Gore, the executive director of the Zero Emissions Transportation Association, the majority of qualified EVs will still keep some form of the credit, such as a $3,750 half credit, which is excellent news for EV shoppers.
To sum up, the IRS has limited the number of EVs eligible for the federal tax credit. Nevertheless, the majority of qualifying EVs still receive some credit, and the Treasury Department’s support for the EV supply chain will benefit the accessibility of North American-made EVs in the coming years.
