"Remaining EVs Eligible for Full $7,500 US Tax Credit Dwindle to a Select Few"
The number of electric vehicles eligible for the full $7,500 federal tax credit in the US has been significantly reduced due to new requirements on battery minerals and sourcing from the Inflation Reduction Act of 2022. Only five battery electric vehicles and one plug-in hybrid vehicle qualify for the full credit, with a few others eligible for a half credit. Popular EVs like the Tesla Model 3, Nissan Leaf, and Volkswagen ID.4 have been removed from the list, and many EVs manufactured outside North America never qualified. The tax credit is becoming more restrictive to encourage the use of battery materials not sourced from "foreign entities of concern" and to boost the US EV sector and job creation. Automakers are now investing in North American battery plants and mining operations to comply with the new regulations.