If you're in the market for an electric car and were banking on tax credits to drop the price by $7,500, you now have fewer options to choose from.
The US Treasury Department recently released a list of electric and plug-in hybrid vehicles that qualify for the full amount of new EV tax credits available, or $,7500, which stem from the massive Inflation Reduction Act passed last August.
The list also details which electrified vehicles qualify for half credit, or $3,750.
Whether a plug-in vehicle qualifies for credits is determined by the vehicle's eligibility based on criteria like sticker price, as well as whether it was assembled in the US. The two halves of the credit are related to the origin of its battery and critical minerals components. The industry was especially waiting for details on that, given how complex the EV battery supply chain is — and how much automakers are leaning on China for those materials.
The tax credits are meant to incentivize the auto industry to move their supply chains and invest in electric vehicle development in the US.
Few all-electric vehicles can get the full credit amount starting April 18, while others qualify for partial credits. Here's the full list:
