"Federal EV Tax Credit Limited to 10 Electric Car Models in 2024"

Starting January 1, 2024, only ten electric car models will qualify for the full $7,500 federal tax credit under the Inflation Reduction Act. The regulations require that eligible clean vehicles must not contain battery components or critical minerals that are manufactured, assembled, extracted, processed, or recycled by a foreign entity of concern (FEOC). The applicable percentages for battery component and critical mineral requirements will increase over the years. Additionally, there are several electric car models that will be eligible for half of the federal tax credit. The complex rules and regulations surrounding the tax credit may deter prospective electric car buyers and create uncertainty in the market.