Connect with us

Hi, what are you looking for?


IRS Updates Electric Car Tax Credit List, Benefits Shift To US-Made Electric Cars

Electric cars
Electric cars ( Photo: NPR )

The Internal Revenue Service (IRS) has released a list of electric cars that qualify for the new battery guidelines, following the latest requirements for sourcing a percentage of battery minerals and components from North America or a US trade partner.

electric cars

Electric cars ( Photo: Barron’s )

The new rules were part of the climate bill that revised the tax credit for electric cars

The $7,500 tax credit is split into two credits of $3,750 each, but starting from April 18th, qualifying vehicles could get both, one, or neither. General Motors and other US automakers are the main beneficiaries of the revamped rules. Although several popular models like the Tesla Model Y and Chevy Bolt will still receive the full $7,500 tax credit, half a dozen models will receive a $3,750 credit and the VW ID.4, Nissan Leaf and Rivians will lose the credit altogether.

The revamped rules incentivize US-based production by encouraging automakers to meet complicated rules that increase the sourcing of materials that go into the batteries of the vehicles

As a result, foreign automakers have been significantly affected as Hyundai, Kia, Nissan, and Volkswagen lost access to the tax credit due to their batteries’ lack of domestic or partner-country content. Meanwhile, Tesla, Ford, GM, and Stellantis are among the four American automakers still eligible for the tax credit.

To receive the tax credit, vehicles must meet the battery size and vehicle weight requirements and must be assembled in North America. The sticker price for cars must be less than $55,000, while for SUVs and trucks, it should be under $80,000. Moreover, the buyer’s income should also be less than the modified adjusted gross income cap. These requirements are a part of the massive climate bill that was passed by the Biden administration last year.

READ ALSO: Food Stamps: Important Information Regarding SNAP Payouts In April

Copyright © 2022 Pro Claimers. Theme by MVP Themes, powered by The Santa Clarita Valley.