Cadillac LYRIQ. One of ten cars that have the full tax credit available. Photo: Cadillac.
A few hours ago, Bloomberg announced the top 10 vehicle list who qualify for the full $7,500 Tax Credit. General Motors, Tesla and Ford all have at least one electric vehicle that will qualify, while the same oval mark and Stellantis have a plug-in hybrid model in their catalog that also qualifies for the credit.
The news released by the news portal states that, according to the Treasury Departmentno other automaker will have a vehicle for sale that fully meets the criteria that go into effect today.
The requirements included in the current government’s flagship climate change law, the Inflation Reduction Lawwill approximately halve the number of vehicles that can receive the full tax credit compared to the number that were eligible during the first months of the year, when the Treasury Department was finalizing the procedures to carry out this new law.
In fact, only seven vehicles made by Tesla, Ford and Stellantis will qualify for 50% credits, which means eligible consumers will have access to a $3,750 credit.
Pricing for the 2023 Chevrolet Bolt EV starts at $27,495, making it eligible for the full tax credit Photo: Chevrolet
Here are the ten cars that qualify for the full $7,500 credit
Chrysler Pacifica, plug-in, hybrid, $80,000.
Ford F-150 Lightning, EV, $80,000.
Lincoln Aviator Grand Touring, plug-in hybrid, $80,000.
Chevrolet Bolt, EV, $55,000.
Cadillac Lyriq, EV, $80,000.
Chevrolet Blazer, EV, $80,000.
Chevrolet Silverado, EV, $80,000.
Chevrolet Equinox, EV, $80,000.
Tesla Model 3, EV, $55,000.
Tesla Model Y, EV, $80,000.
The list released Monday makes official what many automakers feared: that consumers will miss out on federal incentives for their electric vehicles because these do not have enough battery components or miscellaneous materials Made in North America or in countries with free trade agreements with the United States.
The full tax credit has certain limitations
Volkswagen, Hyundai, Nissan, BMW, Volvo and Rivian had vehicles eligible for partial credits earlier this year, however those cars are no longer listed on the US Department of Energy’s website today.
In addition, several electric vehicles, including Ford’s Mustang Mach-E and the Standard Range version of Tesla’s Model 3 sedan, will see their credits reduced from $7,500 to $3,750.
Interestingly, three of the 10 qualifying vehicles, the Chevrolet Silverado EV, Blazer EV, and Equinox EV, will be available until next summer or fall. However, other electric vehicles missing from the list could still have an opportunity for tax credits, depending on the manufacturer’s certification that their batteries meet criteria set by the Treasury Department.
Volkswagen expects the ID.4 to be eligible for the tax credit. Photo: Volkswagen
In this vein, Volkswagen stated that it is “quite optimistic” that its SUV ID.4 will qualify for a credityou only wait for documentation from a provider to request credit from the Treasury Department.
In addition, credits are also limited to vehicles that fall within certain price thresholds and are restricted to taxpayers with income below certain limits.
It should be remembered that the Joe Biden administration gave automakers some flexibility in the requirements, following an intense lobbying campaign after the bill was passed last August.
While sourcing the growing amount of minerals and battery components from countries other than China will be a major challenge for automakers and their suppliers, incentives of the Inflation Reduction Law are helping to drive investment.
According to Bloomberg, the companies announced plans to invest more than $52 billion in electric vehicle manufacturing projects and batteries in the six months after the law was passed, however, time is upon them and things are getting more difficult for them.
