The narrow list of electric vehicles that qualify for federal tax credits has already grown again. Ars Technica notes that the US government has restored multiple electric rides to the list of vehicles that get at least some credit. The 2023 VW ID.4 (the first model built in the US) receives the full $7,500 incentive, as do the upcoming Chevy Blazer EV, Equinox EV and Silverado EV. Rivian R1T and R1S buyers can also get a $3,750 credit as long as their configuration slides below the $80,000 limit.
When the Internal Revenue Service outlined the original list, only six electric vehicles could get the full tax credit. This included the Cadillac Lyriq, Chevy Bolt, Chevy Bolt EUV, Ford F-150 Lightning, Tesla Model 3, and Tesla Model Y. Other EVs and plug-in hybrids received only partial credits, such as the Chrysler Pacifica PHEV and Ford Mustang Mach-MI.
The Treasury Department outlined stricter requirements for electric vehicle tax credits in March. To be eligible for $3,750, a car’s battery components must be 50 percent manufactured or assembled in North America. At least 40 percent of the key minerals must come from the US or its free trade partners to earn another $3,750. Batteries must be manufactured entirely in North America by 2029 for vehicles to still qualify.
As VW wants to point out, this makes the ID.4 a better deal. The entry-level standard version costs $31,495 after accounting for the tax credit. If you can live with the 209-mile range, it might seem like a bargain even compared to the cut-price Model 3. You’ll most likely want to go with the ID.4 Pro with 275 miles of range, but that’s still more achievable with a $36,495 sticker after the incentive.
This may also help bring Chevy’s wave of EVs within reach. The Equinox in particular is expected to have a starting price of around $30,000; a full credit would price it below many conventional SUVs, let alone electrified versions. As with VW, the discount could spur sales and help the US meet the climate targets that helped fuel the Cut Inflation Act.