Only 10 electric and plug-in hybrid vehicles will qualify for $7,500 federal tax credits in the U.S. after stricter battery-sourcing rules take effect and render most plug-in models ineligible.
General Motors Co., Tesla Inc. and Ford Motor Co. all have at least one EV that will qualify, while Ford and Stellantis NV each have one eligible plug-in hybrid model. No other automakers will have a vehicle for sale that fully meets the criteria that was finalized last month and will kick in on Tuesday, according to the Treasury Department.
The requirements included in the Democrats’ marquee climate law — the Inflation Reduction Act — will roughly halve the number of vehicles that can receive the full tax credit relative to how many were eligible during the first few months of the year, when Treasury was finalizing its guidance for meeting the rules. Seven additional vehicles made by Tesla, Ford and Stellantis will qualify for half credits, meaning $3,750 will be available to eligible consumers.
