Electric cars from companies like Elon Musk’s Tesla, Japanese automakers Nissan Motor Co. and General Motors Co. will cost up to $7,500 (approximately Rs. 624,000) after new battery procurement rules came into effect on the first day of the new year. is no longer eligible for tax credits. .
The Nissan Leaf, Tesla Cybertruck all-wheel drive, some Tesla Model 3 models, and the Chevrolet Blazer EV are affected, according to the U.S. Treasury.
In response to the incident, Nissan said it is working with its suppliers to address changing requirements and “will restore tax credit eligibility for the Nissan Leaf in the future.”
Tesla has not publicly commented on the development, but the company’s website states that “the Cybertruck will likely qualify for federal tax credits in late 2024.”
Tesla announced last month that its Model 3 rear-wheel-drive and long-range vehicles will lose federal tax credits starting Jan. 1. The Model 3 Performance leaves him with a $7,500 deduction.
Other vehicles not included in the tax credit list include the Volkswagen ID.4, Tesla Model 3 rear-wheel drive, BMW X5 xDrive50e, Audi Q5 PHEV 55, Cadillac Lyric, and Ford E-Transit.
Volkswagen responded to the move by saying it is reviewing eligibility for the federal EV tax credit for vehicles starting January 1.
“We are optimistic that all 2023 and 2024 ID.4s will qualify under the new rules,” the German automaker added.
BMW did not immediately take a stance on the matter.
In December, the Treasury Department issued guidelines outlining new battery procurement requirements aimed at separating the U.S. electric vehicle supply chain from China, which went into effect on Monday.
As a result of this guideline, the number of EV models eligible for the U.S. EV tax credit has been reduced by more than half from 43 to 19. This figure also includes different versions of the same car.
The Ministry of Finance added that some manufacturers have not yet submitted information on affected vehicles, which could lead to changes to the list.
Under the new rules, buyers can claim up to $7,500 in tax credits at the point of sale at participating dealers. The tax credit places limits on the vehicle price and buyer’s income to qualify.
“Automakers are adjusting their supply chains to ensure buyers continue to qualify for the new Clean Car Credit and partnering with allies to bring jobs and investment back to the United States,” the Treasury Department said.
Ford Motor Company announced in December that its E-Transit, Mach-E, and Lincoln Aviator Grand Touring plug-in hybrid vehicles will ultimately lose the $3,750 tax credit, but the F-150 EV Lighting and Lincoln Corsair Grand Touring will not. announced that the amount would remain the same.
General Motors noted that all EVs except the Chevrolet Bolt are temporarily ineligible. The Lyriq and Blazer EVs are losing credibility because of two small parts, the American automaker said.
GM expects the Lyriq and Blazer EVs to regain eligibility in early 2024 after the procurement change, and that “Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV, and Cadillac Optic produced after the procurement change” will be fully eligible for incentives.”
The Inflation Control Act of 2022 reformed the EV tax credit, requiring that vehicles eligible for the tax credit be assembled in North America, and nearly 70% of eligible models at the time were discontinued.