The narrow list of EVs that qualify for federal tax credits has already grown again. Ars Technica notes The US government has reinstated several electric rides List Of vehicles that get at least some credit. The 2023 VW ID.4 (the first model built in America) gets a full $7,500 incentive, as do the upcoming Chevy Blazer EV, Equinox EV and Silverado EV. Buyers of the Rivian R1T and R1S can also receive a $3,750 credit, provided their configuration is under the $80,000 cap.
When the Internal Revenue Service outlined the original list, only six completed EVs could get the tax credit. This includes the Cadillac Lyriq, Chevy Bolt, Chevy Bolt EUV, Ford F-150 Lightning, Tesla Model 3 and Tesla Model Y. Other EVs and plug-in hybrids received only partial credits, such as the Chrysler Pacifica PHEV and Ford Mustang Mach-E.
The Treasury Department outlined stricter requirements for the EV tax credit in March. To qualify for the $3,750, 50 percent of the car’s battery components must be manufactured or assembled in North America. To earn another $3,750, at least 40 percent of key minerals must come from the US or its free trade partners. The batteries must be fully made in North America by 2029 for the vehicles to still qualify.
As eager for VW to signal, this makes the ID.4 a better deal. The entry-level Standard trim costs $31,495 after accounting for the tax credit. If you can live with the 209-mile range, it may seem like a bargain compared to the price-cut Model 3. You’ll want to spring for the ID.4 Pro with 275 miles of range, but it’s still more obtainable with a $36,495 sticker after incentives.
It could also help keep Chevy’s wave of EVs to come within reach. The Equinox in particular is expected to start around $30,000 – a full credit it will cost less than many conventional SUVs, let alone electrified versions. With VW, the rebate could boost sales and help the US meet the climate goals that helped inspire the Inflation Reduction Act.