"Understanding the 2023 EV Tax Credit: Eligibility and Changes for Tesla, Ford, and Chevy"

Starting January 1, the federal EV tax credit rules will change, disqualifying certain electric vehicles from receiving up to $7,500 in tax credits. Notably, the Tesla Model 3 (rear-wheel drive and long-range versions) and the Ford Mustang Mach-E will lose their eligibility due to new requirements on component sourcing, specifically excluding those with parts made in China or by Chinese-owned companies. The tax credit will also be applied at the time of purchase rather than retroactively.