When news first broke that US Democrat Senators had come to an agreement on a new federal EV tax credit, there was plenty of excitement. The cap was to be removed, meaning early adopters, such as GM and Tesla, would be eligible once again. However, due to various new rules, it became clear that most of today's EVs will no longer qualify for the credit.
Automakers pushed back against the new credit, and some went so far as to get their customers to sign binding purchase agreements from EV reservation holders. The hope is that with the agreements, the EV sales would remain eligible for the current credit since the new credit will no longer apply to most EVs. To be clear, electric cars produced by Hyundai, Kia, Porsche, Toyota, and other automakers will no longer be eligible for the credit going forward.
Essentially, there are caps on the price of the vehicles that can receive the credit, as well as rules related to where the EVs are built and where the battery materials come from. According to an article published by TechCrunch and shared by Autoblog, some 70 percent of EVs in the US (72 current models) that are eligible for the current credit will no longer be eligible for the new credit.
With that said, the Biden Administration has come forward to share that about 20 current and upcoming electric vehicles will be eligible for the new credit. Meanwhile, automakers like General Motors and Tesla will gain eligibility for the new Clean Vehicle Credit beginning in 2023.
Based on what's been shared to date, the government lists the following 2022 models as being eligible for a federal EV tax credit through the end of the year:
- Audi Q5
- BMW 3 Series Plug-In
- BMW X5
- Chrysler Pacifica PHEV
- Ford Escape PHEV
- Ford F-150 Lightning
- Ford Mustang Mach-E
- Ford Transit Van
- Jeep Grand Cherokee PHEV
- Jeep Wrangler PHEV
- Lincoln Aviator PHEV
- Lincoln Corsair Plug-in
- Lucid Air
- Nissan Leaf
- Rivian EDV
- Rivian R1S
- Rivian R1T
- Volvo S60 Recharge PHEV
The list also includes early 2023 EVs, such as the Mercedes EQS. A few others are on the list, but they're also listed on the 2022 model-year list above: 2023 BMW 3 Series Plug-In and 2023 Nissan Leaf.
Finally, the following electric cars aren't yet eligible, but they will be as of January 1, 2023:
- 2022/2023 Chevrolet Bolt EV
- 2022/2023 Chevrolet Bolt EUV
- 2022 GMC Hummer EV (pickup truck and SUV)
- 2022 Tesla Model 3
- 2022 Tesla Model S
- 2022 Tesla Model X
- 2022 Tesla Model Y
- 2023 Cadillac Lyriq
You're probably looking at the lists and thinking that some of the EVs are likely more expensive than the price caps would allow, or may not adhere to all the new rules. This is because many of the new rules won't go into effect until January 1, 2023, at which time many of those vehicles will become ineligible.
As you can see, the government is attempting to make it look as though many EVs will qualify for the new credit, but that's not really the case. Those ~20 cars will qualify for a tax credit for now, but many will lose eligibility with the new year and new credit.
