There also are battery-size requirements.
WHICH VEHICLES ARE ELIGIBLE?
Because of the many remaining uncertainties, that’s not entirely clear.
General Motors and Tesla have the most EVs assembled in North America. Each also makes batteries in the U.S. But because of the requirements for where batteries, minerals and parts must be manufactured, it’s likely that buyers of those vehicles would initially receive only half the tax credit, $3,750. GM says its eligible EVs should qualify for the $3,750 credit by March, with the full credit available in 2025.
Until Treasury issues its rules, though, the requirements governing where minerals and parts must be sourced will be waived. This will allow eligible buyers to receive the full $7,500 tax incentive for qualifying models early in 2023.
The Energy Department says 29 EV and plug-in models were manufactured in North America in the 2022 and 2023 model years. They’re from Audi, BMW, Chevrolet, Chrysler, Ford, GMC, Jeep, Lincoln, Lucid, Nissan, Rivian, Tesla, Volvo, Cadillac, Mercedes and Volkswagen. Yet because of price limits or battery-size requirements, not all these vehicle models will qualify for credits.
WHAT ABOUT PRICE?
To qualify, new electric sedans cannot have a sticker price above $55,000. Pickup trucks, SUVs and vans can’t be over $80,000. This will disqualify two higher-priced Tesla models. Though Tesla’s top sellers, the models 3 and Y, will be eligible, with options, those vehicles might exceed the price limits.