Tesla Model Y crossover
The Tesla Model Y is now eligible for the federal tax credit in more configurations than before.
  • The US government walked back a controversial part of the new electric-car tax credit. 
  • The rule change means that more electric SUVs from Tesla and others qualify for the $7,500 incentive. 
  • Elon Musk called the original rules "messed up."

The US Treasury Department on Friday updated the rules surrounding the new electric-vehicle tax credit to make more models eligible. 

The new guidelines — which expand the definition of an SUV — are a big win for Ford, Tesla, General Motors, and Volkswagen, as more of their vehicles now qualify for the $7,500 consumer incentive designed to drive demand for cleaner cars. They're also a boon for buyers, who can now pick from more eligible vehicles.