Big names drop off the EV federal tax credit list in the US, as government
cracks down on China

Date:
Fri, 03 Jan 2025 13:18:49 +0000

Description:
The list of eligible EVs makes for depressing reading

FULL STORY

Rewind a couple of years and any EV manufactured in the US was eligible for a
federal tax credit of up to $7,500, but the goalposts have since been shifted
as the Biden administration introduced rules that clamped down on any 
electric vehicle with battery components hailing from any foreign entity of
concern (FEOC) - which includes China. 

Despite many automakers aiming to switch suppliers and rid future vehicles of
components from blacklisted locations, the number of EVs eligible for the
federal tax credit has been on the wane and the choice for 2025 is more
restricted than ever. 

The popular (and relatively affordable) Nissan Leaf has dropped from the 
list, while Volkswagens ID.4 model, arguably the best of all the ID models on
sale, is also nowhere to be seen. 

 Rivian has also seen all variants of the R1S and the R1T fail to meet
eligibility requirements, while the delightfully affordable but
out-of-production Chevrolet Bolt also no longer qualifies. Alas, you would be
hard pushed to find inventory for this run-out model anyway. 

Unless you are in the market for a Tesla, including Model 3, Model X, Model Y
and Cybertruck, the 2025 list of eligible models makes for rather brisk
reading. 

Chevrolet fans can now plump for a Blazer EV, Equinox EV or Silverado EV, so
long as the retail price doesnt exceed $80,000. Where the Silverado is
concerned, that doesnt leave many options. 

The Ford F-150 Lighting is the only model from the Blue Oval that is now
eligible for tax credits, while the Honda Prologue and Genesis GV70
Electrified offer a couple of Japanese alternatives. 

The Hyundai Motor Group, which includes Kia and Hyundai, seem to have their
ducks in a row, as four models are eligible for tax credits between the two
brands, including Kia EV6 and EV9, as well as Ioniq 5 and the recently
released Ioniq 9 seven-seat SUV.

Analysis: EVs face turbulent times in the US

President-elect Donald Trump is yet to stipulate exactly what will happen 
with electric vehicle tax credits, nor give an indication on where he stands
concerning the technology. This means the list of eligible vehicles is likely
to change over the coming months or could disappear entirely. 

However, there has been a legal loophole that means the full $7,500 tax 
credit can be applied to any electric vehicle, regardless of the origins of
its components, should the customer choose to lease the vehicle, rather that
purchase it outright. 

This is because a lease is considered a commercial sale to the leasing 
company and is eligible for a separate commercial vehicle tax credit,
according to Consumer Reports . 

Regardless, the uncertainty surrounding the future of electric vehicles in 
the US is having a negative effect on sales, seeing adoption of the new
technology lag well behind that of Europe and Asia. 

Even Tesla , which has long been the best-selling EV brand in the US, 
recently posted its quarter four sales and deliveries results, which revealed
the first annual drop in delivery numbers for the company, causing its share
price to fall by as much as 7%.

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Link to news story:
https://www.techradar.com/vehicle-tech/hybrid-electric-vehicles/big-names-drop
-off-the-ev-federal-tax-credit-list-in-the-us-as-government-cracks-down-on-chi
na

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