The newest list of cars that will be eligible for the new electric vehicle tax credit under the Inflation Reduction Act shows the Detroit Three automakers and Tesla leading the way, with General Motors offering the most.
Under the government’s new rule, consumers can get up to $7,500 back in tax credits on eligible electric cars, but that tax credit is actually two separate credits, worth $3,750 each. Starting Tuesday, some EVs could end up qualifying for one or both — or not at all.
The qualifying factors for the credits are that a certain percentage of critical minerals used in the batteries, such as, lithium, graphite and cobalt, need to be mined or processed in the U.S. To get the other $3,750 credit, a certain percentage of the battery components need to be manufactured in North America. The IRS finalized the rules guiding the credits last month, which is why there is going to be a change to which EVs are eligible for credits.
The following vehicles will still be eligible for both tax credits, worth $7,500 going forward:
- Cadillac Lyriq
- Chevrolet Silverado EV
- Chevrolet Bolt
- Chevrolet Bolt EUV
- Chevrolet Blazer EV
- Chevrolet Equinox EV
- Chrysler Pacifica PHEV
- Ford F-150 Lightning
- Lincoln Aviator Grand Touring plug-in hybrid
- Tesla Model Y (AWD, Long Range AWD and 2022 Performance)
- Tesla Model 3 (Performance)
The GMC Hummer EV pickup, Hummer SUV and Celestiq are over the $80,000 manufacturer suggested retail price cap that is included in the incentive, and therefore do not qualify, said GM spokesman Matt Ybarra. The list above is for the 2023 production year, therefore the GMC Sierra EV pickup is not on it because production and deliveries of that vehicle do not start until next year, Ybarra said.
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“Over the next ten years GM will offer a broad selection of qualifying vehicles across numerous segments and price points, which will bolster our EV transformation as well as the U.S. production and adoption that these incentives were designed to support,” GM said in a statement released by Ybarra.
GM has invested $35 billion through 2025 to fund a transition to a zero-emissions lineup by 2035.
Meanwhile, Stellantis will jump-start its transition to EVs over the next 18 months as the Chrysler, Dodge, Fiat, Jeep and Ram brands each launch at least one EV, said Mark Stewart, chief operation officer of Stellantis in an interview as the automaker unveiled the production version of the 2025 Ram 1500 Rev electric pickup at the New York auto show Monday. Chrysler will be an all-electric brand by 2028.
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Free Press staff writer Todd Spangler contributed to this report.
Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.