The US Treasury Department released an updated list of electric vehicles (EVs) eligible for the federal tax credit. Under the new rule, consumers can get either a partial credit of $3,750 or the full $7,500 tax credit on eligible cars.
The updated list is shorter than in previous years due to stricter critical mineral and battery component sourcing requirements.
The critical mineral requirement stipulates that a certain percentage of the value of the minerals used in EV batteries must be extracted or processed in the United States or a country with a free-trade agreement.
Alternatively, the minerals could have been recycled in North America.
Similarly, the battery component requirement states that a certain percentage of the value of the battery components must be manufactured or assembled in North America.
Electric Vehicle Requirements
Government requirements will progressively increase through 2028. The critical minerals percentage will start at 40% in 2023 and rise to 80% by 2027, while the battery components percentage will start at 50% and increase to 90% by 2028.
There is no limit to the number of EVs manufacturers can sell with tax credits, if their vehicles meet these requirements.
2023
40% Critical Mineral Percentage
2027
80% Critical Mineral Percentage
2023
50% Battery Component Percentage
2028
90% Battery Component Percentage
This is a notable shift from the previous rule, which had a cap on the number of vehicles that could be sold with the tax credit. This change now permits General Motors and Tesla to qualify for the tax credit again.
Of all manufacturers, GM was the only one to have all eligible EVs get the full tax credit. Foreign manufacturers such as BMW, Genesis, Nissan, and Volkswagen previously had vehicles that qualified for the tax credit, but none of their models currently meet the new restrictions.
Hover over an image below to see National Days Supply
Tax Credit – $7,500
Daily Units Sold - 2
Days Supply - 242
Tax Credit – $7,500
Daily Units Sold - 41
Days Supply - 21
Tax Credit – $7,500
Daily Units Sold - 7
Days Supply - 50
Tax Credit – $7,500
Daily Units Sold - 27
Days Supply - 28
Tax Credit – $7,500
Daily Units Sold - 20
Days Supply - 110
Tax Credit – $3,750
Daily Units Sold - 30
Days Supply - 114
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