ELECTRIC VEHICLE - WASHINGTON. The Biden administration said on Tuesday about 20 models will still qualify for electric vehicle tax credits of up to $7,500 through the end of 2022 under legislation signed by President Joe Biden.
The law Biden signed Tuesday immediately ends credits for about 70% of the 72 models that were previously eligible, said the Alliance for Automotive Innovation, an industry trade group.
To qualify, EVs must now be assembled in North America.
New restrictions on battery and mineral sourcing and price and income caps take effect on Jan. 1 that will make all or nearly all EVs ineligible, the auto group said.
The currently eligible vehicles are 2022 model year EV or plug-in hybrid electric versions of the Audi Q5, BMW X5, Ford Mach-E, Ford F-150, Ford Escape, Chrysler Pacifica, Jeep Grand Cherokee, BMW 3-Series, Lincoln Aviator, Lincoln Corsair, Lucid Air, Nissan Leaf, Volvo S60 and Rivian EDV, R1S and R1T. The 2023 Leaf, 3-Series plug-in and Mercedes EQS are also eligible.
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Buyers can qualify if they had binding written contracts before Biden's signing and some companies had urged customers to make portions of deposits non-refundable to qualify.
The IRS said "if a customer has made a non-refundable deposit or down payment of 5% of the total contract price, it is an indication of a binding contract."
"The auto industry will continue to work with the Biden administration and Treasury Department as they issue critical guidance and new regulations – so the EV tax credit is as available and beneficial to consumers as possible," the auto group said.
