Tax credits for consumers who purchase EVs were extended and expanded in 2022’s Inflation Reduction Act.
But that law also included stipulations that are now taking effect, making some models ineligible for some or all of the credit, which can be up to $7,500.
Sam Abuelsamid, an analyst with Guidehouse Insights, told The Hill that the Tesla Model 3‘s credit will be cut in half, while Ford’s Mustang Mach-E, which was previously eligible for the $3,750 credit, will be fully disqualified.
Some GM vehicles could also temporarily lose eligibility, he said.
This is because of stipulations that prevent crediting vehicles made with components that come from “foreign entities of concern” — such as companies tied to the governments of China, Iran, North Korea or Russia.
On the other hand, consumers will now be able to get their tax credit when they purchase the car, instead of claiming it the next year on their taxes.
Read more in a full report at TheHill.com.
