On April 18th, according to media reports, the US government announced a list of electric vehicles eligible for a $7500 tax credit on Monday.
According to a new federal rule that will take effect on Tuesday, only 10 pure electric or plug-in hybrid electric vehicles (PHEV) are eligible for the full $7500 subsidy, with 8 being pure electric vehicles and 2 being plug-in hybrid electric vehicles.
These 10 cars are:
- Tesla Model 3 Performance
- Tesla Model Y
- Ford F-150 Lightning pickup truck
- Stellantis-owned Chrysler Pacifica PHEV
- Ford-owned luxury car brand Lincoln Aviator Grand Touring PHEV
- General Motors’ Chevrolet Bolt
- Chevrolet Bolt EUV
- Cadillac Lyriq
- Chevrolet Silverado electric pickup truck
- Chevrolet Equinox electric SUV
According to the new federal regulations in the United States, only four car manufacturers, namely General Motors, Ford, Tesla, and Stellantis (owner of Jeep and Chrysler), are eligible for a $7,500 tax credit.
At the same time, seven other cars are eligible for a $3,750 tax credit, namely:
- Ford Escape PHEV
- Ford E-Transit
- Ford Mustang Mach-E
- Jeep Wrangler 4xe
- Jeep Grand Cherokee 4xe
- Lincoln Corsair Grand Touring PHEV
- Tesla Model 3 Standard Range
The new tax credit policy is a consumer incentive that will last until 2032, aimed at boosting electric vehicle sales and reducing greenhouse gas emissions.
Under the new tax credit policy, only vehicles assembled in North America are eligible for tax credits, but a new document from the US Treasury Department allows some vehicles assembled outside of North America to receive tax credits provided that these vehicles are purchased for leasing purposes and not resale, making them eligible for an incentive through a separate commercial electric vehicle program.
The new list means that cars from Volkswagen, Hyundai, Kia, Nissan, BMW, Volvo, and Rivian are no longer eligible for tax credits.