The Biden Administration announced that about 20 existing and upcoming electric vehicles will qualify for the new federal tax credit, while leading auto manufacturers such as Tesla and General Motors will only gain eligibility in 2023 for the new Clean Vehicle Credit, according to InsideEVs.
The new federal tax credit aims to remove the cap and introduce new rules making most of today’s electric vehicles in the US (at around 70%) ineligible, including Hyundai, Kia, Porsche, Toyota, and other EV manufacturers as per recent reports published in TechCrunch.
Primarily, there are caps on the vehicles’ price aside from the rules regarding where the EVs are built and where their battery materials originated. With that being said, Automakers tried to have a binding purchase agreement signed by their customers, hoping that EV sales would remain eligible for the current credit since they would not be eligible when the new credit comes.
It may seem that the electric vehicles are pricier than the caps would allow, and other differences may not adhere to the new rules that the new federal tax credit will require. Well, it is because the legislation is anticipated to be effective until January 1, 2023 which will lift the current eligibility of most of the EVs today.