- You can still get the full $7,500 federal tax credit on some popular EVs.
- New restrictions on materials from China have shrunk the list of EVs eligible for the full credit.
- Many automakers are racing to move battery production to the US.
New requirements for a $7,500 federal tax credit on electric vehicles kicked in on January 1, and the list of eligible vehicles just got a lot shorter.
Under the new rules, it’s harder to get the full $7,500 credit if a car contains materials from China and other countries that the Treasury Department has labeled a “foreign entity of concern.”
Many automakers are racing to build US battery factories to reduce their reliance on Chinese suppliers, but these companies are still years from being able to produce an electric vehicle without materials and components from China.
That means a lot of very popular electric vehicles, like Ford’s Mustang Mach-E and most versions of Tesla Model 3, are no longer eligible for the tax credit. Many of GM’s new EVs on its Ultium battery platform, like Chevrolet’s Blazer EV and Cadillac Lyric, also don’t qualify.
Changes to the electric vehicle tax credit under the Biden Administration have led to creative tactics by shoppers and dealers to ensure the maximum level of incentives for every electric car.
You can check what a vehicle qualifies for by entering its VIN at fueleconomy.gov.
Here are the 13 vehicles still eligible for at least a partial credit.
