13 C
New York
Monday, March 4, 2024

More EVs lose US tax credits including Tesla Cybertruck, Nissan Leaf By Reuters

More EVs lose US tax credits including Tesla Cybertruck, Nissan Leaf By Reuters


© Reuters. FILE PHOTO: Tesla’s new Cybertruck is on display at a Tesla store in San Diego, California, U.S. December 9, 2023. REUTERS/Mike Blake/File Photo


By David Shepardson

WASHINGTON (Reuters) – Many electric vehicles lost eligibility for tax credits of up to $7,500 after new battery supply rules took effect on Monday, including the Nissan (OTC:) Leaf , the Tesla (NASDAQ:) Cybertruck All-Wheel Drive and the Chevrolet Blazer EV. , declared the US Treasury.

Treasury issued guidance in December detailing new battery supply requirements aimed at steering the U.S. electric vehicle supply chain away from China. They came into force on Monday.

The number of electric vehicle models eligible for U.S. electric vehicle tax credits decreased from 43 to 19. These figures include different versions of the same type of vehicle. The Treasury said some manufacturers had not yet submitted information on eligible vehicles, which could lead to changes to the list.

The new rules allow buyers to claim a tax credit of up to $7,500 at a participating dealership at the point of sale. The tax credit sets limits on the price of the vehicle and the income of the buyer to qualify for it.

The Volkswagen (ETR:) ID.4, Tesla Model 3 Rear Wheel Drive, BMW (ETR:) X5 xDrive50e, Audi Q5 PHEV 55, Cadillac Lyriq and Ford E-Transit are among the vehicles that fell from the list of eligible vehicles to tax credits.

Volkswagen said Monday that it is “in the process of confirming eligibility for a federal electric vehicle tax credit” after Jan. 1.

“We are optimistic that ID.4 MY2023 and all ID.4 MY2024 will be eligible under the new rules,” VW added.

BMW, Nissan and Tesla had no immediate comment.

Treasury said “automakers are adjusting their supply chains to ensure buyers continue to be eligible for the new Clean Vehicle Credit, partnering with allies and bringing jobs and investment back to the United States.” United”.

Ford Motor (NYSE:) said last month that its E-Transit would lose the $3,750 tax credit, as would the Mach-E and Lincoln Aviator Grand Touring plug-in hybrid, but its F-150 EV Lighting and The Lincoln Corsair Grand Touring have retained credits.

General Motors (NYSE:) noted that all of its electric vehicles would temporarily lose eligibility except for the Chevrolet Bolt, adding that the Lyriq and Blazer EV lose the credit due to two minor components.

GM expects that after a supply change, the Lyriq and Blazer EV will regain eligibility in early 2024 and said its Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV and Cadillac OPTIQ produced “after the change of supply will be eligible for the full incentive.

The Inflation Reduction Act of 2022 reformed the electric vehicle tax credit, requiring vehicles to be assembled in North America to qualify for any tax credit, eliminating nearly 70% of models eligible for the era.

Tesla revealed in December that its long-range, rear-wheel-drive Model 3 vehicles would lose federal tax credits starting January 1. The Model 3 Performance retains the $7,500 credit.

Source link

Latest stories