More electric vehicles lose full US tax credits in 2024
Eelectric vehicles are charging at a charging station in Monterey Park, California, on April 12, 2023. (Photo by FREDERIC J. BROWN/AFP via Getty Images)
Consumers considering purchasing an electric vehicle in the new year will have a few things to ponder besides the price tag.
New guidelines were issued for EV tax credits on Jan. 1, leading to more of these vehicles losing eligibility for the credit. The Treasury Department issued these rules so the U.S. can become less reliant on China’s electric vehicle supply.
Reuters reports that these new rules allow car buyers to get a tax credit up to $7,500 at a participating dealership at the point of sale. This tax credit places limits on vehicle price and buyer income to qualify.
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Separately, the $7,500 EV credit consists of two credits valued at $3,750 a piece. A vehicle can be eligible for both, one of them, or none if it meets the criteria set by the U.S. Treasury Department.
The federal agency explains on its website that for an electric vehicle to meet the eligibility for the $3,750 credit, a portion of the battery components must be made or built in North America.
NPR reports one of the $3,750 credits focuses on the raw materials inside batteries, meaning a portion of it has to be pulled from a natural resource or manufactured in the U.S.
And the other $3,750 credit centers on battery manufacturing, meaning a portion of the battery components must be made or built in North America.
Some electric vehicles losing this credit include the Nissan Leaf, Tesla Cybertruck All-Wheel Drive, some Tesla Model 3s, the Volkswagen ID.4, Ford E-Transit and Chevrolet Blazer EV, Reuters offered.
Reuters reported that multiple EV models eligible for the tax credits dropped from 43 to 19. Those figures include different versions of the same vehicle type.
Citing the Treasury Department, Reuters noted that several automakers haven’t provided information on eligible vehicles, which may impact the list.
This story was reported from Washington, D.C.