WASHINGTON D.C.: Electric autos made by Volkswagen, BMW, Nissan, Rivian, Hyundai and Volvo will lose entry to a $7,500 tax credit score beneath new guidelines for battery sourcing, stated the US Treasury this week.
As a part of the White House’s efforts to make 50 % of US new car gross sales EVs by 2030, the foundations goal to cut back the dependence of the US on China for EV battery provide chains.
In a press release, Hyundai stated it “will utilize key provisions in the Inflation Reduction Act to accelerate the transition to electrification,” including it was dedicated to its long-range EV plans.
VW stated it was “fairly optimistic” its ID.4 SUV will qualify for the tax credit score.
Nissan stated it’s “working closely with our suppliers and are hopeful that Leaf will qualify for at least partial credit in the future.”
Volvo stated it helps the Biden administration’s transfer and is reviewing not too long ago launched EPA guidelines.
Rivian, BMW and Tesla haven’t responded to requests for remark.
By distinction, General Motors electrical Chevrolet Bolt and Bolt EUV will qualify for the complete $7,500 tax credit score, the US Treasury stated, confirming a earlier assertion by Ford and Chrysler father or mother Stellantis NV that tax credit on most of their electrical fashions can be halved to $3,750 on 18th April.
As a part of the $430 billion Inflation Reduction Act, the brand new guidelines have been introduced final month and authorized by Congress in August.
Vehicles should even be assembled in North America to qualify for tax credit.
In December, the Treasury stated EVs ineligible for the $7,500 client tax credit score might qualify for a business leasing $7,500 credit score.