Only 10 Electric Vehicles Qualify for Full $7,500 US Tax Credit

[BumRushDaShow]

Source: Bloomberg

Only 10 electric and plug-in hybrid vehicles will qualify for $7,500 federal tax credits in the US after stricter battery-sourcing rules take effect and render most plug-in models ineligible.

General Motors Co., Tesla Inc. and Ford Motor Co. all have at least one EV that will qualify, while Ford and Stellantis NV each have one eligible plug-in hybrid model. No other automakers will have a vehicle for sale that fully meets the criteria that were finalized last month and will kick in on Tuesday, according to the Treasury Department.



The requirements included in the Democrats’ marquee climate law — the Inflation Reduction Act — will roughly halve the number of vehicles that can receive the full tax credit relative to how many were eligible during the first few months of the year, when Treasury was finalizing its guidance for meeting the rules. Seven additional vehicles made by Tesla, Ford and Stellantis will qualify for half credits, meaning $3,750 will be available to eligible consumers.

The list released Monday makes official what many manufacturers feared: that consumers will miss out on federal incentives for their EVs because not enough of their battery components or raw materials are sourced from North America or countries with US free-trade agreements.

Read more: https://www.bloomberg.com/news/articles/2023-04-17/gm-tesla-and-ford-evs-will-be-the-only-cars-eligible-for-7-500-us-tax-credit

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The 1/2 credit ones -

[Mr.Bill]

15. Those numbers are going to vary

according to how many MPG the gasoline car gets, how much the gas costs and how much electricity costs for the EV car.

[Renew Deal]

2. I've driven the Chrysler Pacifica plug-in hybrid

On full charge, the first 30 miles of any trip are electric. After that it is hybrid. I liked the car a lot for a minivan. I wonder if it's more cost effective to drive it with a half tank of gas so the battery doesn't have to haul a full tank. Not sure if it makes a difference.

[mbusby]

3. We have a Toyota Prius Prime ...

... that works exactly the same way but is not in the list.

[RoadRunner]

7. Same here - Prius Prime

I got the income tax credit in 2020 for tax year 2019. My everyday driving is mostly less than 30 miles and I’m currently averaging 156 MPG. Much less on the occasional road trip.

[pwb]

5. If your seats are full is there a difference in full electric pedal feel?

You can tell when a gas engine is burdened with weight. Is it the same on full electric? If not, fill her up IMO.

[Renew Deal]

6. I never noticed a difference

And there wasn't an obvious difference when it flipped from electric to hybrid. I don't have access to the car anymore.

[VMA131Marine]

17. The Pacifica hybrid has a 16.5 gallon fuel tank

Half a tank would therefore weigh 50 lbs. That is 0.7% of the vehicle’s 6300 lb curb weight. It’s not nothing, but it’s not going to make a big difference to fuel economy either.

[Wonder Why]

29. It weighs 5,000 pounds - still a pig. It's gross vehicle weight is 6300 pounds which

means it can carry 1300 pounds of people and cargo - or one Donald Trump.

[TheBlackAdder]

4. Tesla should give up their credits, since Musk complains about NPR socisalism.

[jimfields33]

12. It's not up to him.

[former9thward]

26. Tesla makes a huge profit selling their carbon credits to other car companies.

Tesla Carbon Credit Sales Reach Record $1.78 Billion in 2022

https://carboncredits.com/tesla-carbon-credit-sales-reach-record-1-78-billion-in-2022/

[Vinca]

8. Those are crazy prices for cars. If this country is going to transition to electric cars,

somehow one that is affordable to the masses must be produced.

[JustAnotherGen]

10. No way would I spend that money

On a car. The minute I drive it off the lot it loses value.

[jimfields33]

14. Yep. My 2011 Toyota was 20K and I thought that was high.

No way will I pay for a luxury price for a car to get to point a to point b. I figure in 2030, I’ll have to get a new car and hope it’s way less then 30K.

[MichMan]

23. They are going to have to do something by 2032 or the EPA is going to fine them billions

[MichMan]

9. Whomever can get their US sourcing established soonest will have a competitive advantage

[madville]

19. It's facing opposition from environmental groups

North Carolina’s Piedmont mine was in the news recently. Mining Lithium is not environmentally friendly,
Any new projects are going to face years of lawsuits and permit opposition before they can start producing.

[MichMan]

21. Would these groups prefer we continue using fossil fuels instead?

What is their solution other than mine it in third world countries using child and slave labor?

[madville]

22. That's always been the solution

Do it elsewhere, NIMBY on a global scale.

There is a lot wrong with lithium mining, it uses huge amounts of fresh water, degrades soil, takes a lot of fossil fuel to mine (generated energy, heavy equipment), etc.

[Igel]

24. Not a question that occurs to them.

Like the cobalt mined with child labor.

Focus on the immediate problem and it's all easier. Immidiocy matters.

[airplaneman]

11. Well

The list released Monday makes official what many manufacturers feared: that consumers will miss out on federal incentives for their EVs because not enough of their battery components or raw materials are sourced from North America or countries with US free-trade agreements.

As if $80,000 won't deter anybody

-Airplane

[Igel]

25. And that's with a rather expansive definition of

"free trade agreement."

No actual "free trade agreement" need actually be in place, if trade is sufficiently "free." A necessary quasi-legal arrangement to make European governments less pissed. Off.

[JustAnotherGen]

13. The starting MSRP on a Leaf

Is 28K.

Fed Gov is going to have to do better.

[Bristlecone]

20. No kidding. An 80k Pacifica is preposterous. As is a 55k Bolt

[SunSeeker]

31. WTF, they're asking $55k for a piece of shit Bolt?

I had a Bolt. In 2019, they were practically giving them away for $24k. I got one of those pieces of shit and ended up selling it back to Chevy under California’s Lemon Law. I used the money to buy a Ford Escape PHEV in 2021, which was $40k MSRP, but with state and federal clear air credits, I knocked about $10k off the price. So in the end, it only cost about $6k more than the Bolt but is immeasurably better. For one thing, it doesn't catch fire just sitting in your garage.

[OrlandoDem2]

16. Well I can't afford 80% of the cars on that list even with the credit.

[madville]

18. And you have to owe that much in taxes

You only get the $7500 if you owe $7500 in federal taxes. Many people won’t be eligible for the tax credit because they don’t pay any federal taxes.

[friend of a friend]

27. If the government wants more people to be able to buy these cars,

it should do the same as it did for the Covid-19.

[madville]

28. Most are too expensive, rebate or not

I’ll continue to buy used vehicles in the meantime, my $8000 Camry is doing great with 120k miles and I have a nice 2015 F-150 that just hit 104k miles. Can easily drive both 10 more years since I don’t commute far anymore.

[SunSeeker]

30. I love my Ford Escape Plug-in Hybrid.

Good thing I bought it in 2021 when the federal credit was still around $7k.

I also got CA state clear air credits.

All that brought it's price to around $30k.

[Bengus81]

32. Of course...the Oil barrons don't want cars an average person can afford

Getting a **GASP** tax credit. That would lead to even more people not using their diminishing product.