Electric vehicle tax credit update: See if you qualify

TheStreet’s Conway Gittens brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Friday, May 3.

Full Video Transcript Below:

CONWAY GITTENS: Investors look ahead to another big week of earnings and changes around which electric vehicles qualify for tax credits. I’m Conway Gittens with TheStreet - those stories coming up

I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.

Investors are reacting positively to the April jobs report. While the U.S. economy posted its weakest job growth in six months, investors hope the softer than expected report could mean the Fed will cut interest rates soon, rather than later. Markets are pricing in a 50 percent chance the Fed slashes rates by September.

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Investors are also looking ahead to a busy week of earnings – names like Airbnb, Uber, Warner Brothers Discovery, and several others are slated to release quarterly results next week.

Looking at other business headlines: If you’re interested in buying an electric vehicle - there might be some good news coming your way The U.S. government has changed some of the rules around tax credits for EVs. Automakers will now have more time to comply with electric battery regulations, meaning more EVs could be eligible for a tax credit of up to $7,500.

But there is some fine print here to consider. The amount of credits given depend on a person’s income, where the car was assembled, and requirements tied to a car’s battery makeup. Forget about the full tax credit if the car contains battery minerals from countries considered hostile to the U.S. Countries on that list include China, Russia, North Korea, and Iran.

According to the Alliance for Automotive Innovation, only 13 of the 114 EV models currently sold in the U.S. are eligible for the full $7,500 credit.

The changes are aimed at trying to persuade more Americans to purchase electric vehicles. The Biden Administration’s goal is to have half of all new vehicle sales be electric by 2030. EV sales grew by only 3.3 percent in the first three months of this year, compared to a 47 percent increase in the same period a year ago .

That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.

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