President Joe Biden is pushing for the U.S. to make the switch to electric vehicles (EVs) by extending federal tax credits—but there are limitations to what model cars are eligible for the money.
- The Biden administration is pushing for Americans to make the switch to EVs by adding a $7,500 tax credit for those who purchase a battery-powered car.
- But under the newly passed Inflation Reduction Act, starting in January most of the vehicle parts must be assembled in North America for the car to be eligible to receive the credit.
- Starting in January the credit will be divided: Consumers will get $3,750 if 40% of the battery materials come from the U.S. or a country with free trade agreement and the rest will be given if 50% of the battery parts do.
Why it’s news
EV’s have been in discussion for years as more companies have begun the journey to go green and create battery powered vehicles.
The Biden Administration is pushing for more U.S. citizens to make the jump to electric by passing the Inflation Reduction Act which will give a tax credit for EV purchases.
The goal of the credits is not only to get more people to switch to EVs but to make the vehicles more affordable by boosting internal battery production in the U.S.
The credit has stipulations, but there is a long list of vehicles that qualify to receive the money.
Buyers who purchase a car from now until December 31 will receive the full $7,500 tax credit, but all vehicles purchased after January 1 must meet the criteria of being produced in the U.S.
- e-tron Sportback (2020-2022)
- e-tron SUV (2019, 2021-2022)
- e-tron GT / RS e-tron GT (2022)
- e-tron S (Standard and Sportback)
- Q4 50 e-tron Quattro
- i3 Sedan (2014-2021)
- i3s (2018-2021)
- i4 eDrive40/M50 Gran Coupe (2022)
- iX xDrive50/M60 (2022)
- e6 (2012-2017)
- ELMS Urban Delivery (2022)
- 500e (2013-2019)
- Focus EV (2012-2018)
- Mustang Mach-E (all 2021/2022 trims including GT)
- E-Transit (2022)
- F-150 Lightning (standard/extended range) (2022)
- GV60 (2023)
- Ioniq Electric (2017-2021)
- Ioniq 5 (2022)
- Kona Electric (2019-2022)
- I-Pace (2019-2022)
- I-Pace HSE (2022-2023)
- Niro EV (2019-2022)
- Soul Electric (2015-2020)
- EV6 (58 kWh, 77.4 kWh) (2022)
- Lucid Air Dream Edition (2022)
- Lucid Air Grand Touring (2022)
- MX-30 (2022)
- AMG EQS (2022)
- EQS 450+ (2022)
- EQS 580 4matic (2022)
- B-Class EV (2014-2017)
- Cooper S E Hardtop 2 & 4 Door (2020-2023)
- i-MiEV (2012, 2014, 2016, 2017)
- LEAF (2011-2022)
- Polestar 2 (2021)
- Polestar 2 Long Range – Single & Dual Motor (2022)
- Taycan (2020-2022)
- R1T (2022)
- R1S (2022)
- EDV 700 (2022)
- EQ fortwo Coupe (2019)
- EQ fortwo Cabrio (2019)
- Solterra (2023) $7,500
- e-Golf (2015-2019)
- ID.4 EV (First/Pro/Pro S) (2021)
- C40 Recharge Pure Electric (2022)
- XC40 Recharge Pure Electric (2021-2022)