Tesla Inc.'s Cybertruck is eligible for U.S. tax credits of as much as $7,500 for the primary time this 12 months. This is a component of a restructuring under stricter rules that got here into force on January 1 and likewise now exclude other electric vehicles from federal subsidies.
The number of electrical vehicles and plug-in hybrids that currently qualify for a credit is currently 18 models, down from 22 last 12 months, in line with the Department of Energy and Environmental Protection Agency. The credit reclassification, a part of the Inflation Reduction Act signed by President Joe Biden, tightens domestic procurement requirements for battery parts and the raw materials used to make them.
The decline within the variety of qualified electric vehicles comes as overall demand for battery-electric models has weakened and President-elect Donald Trump, who has threatened to finish the federal grant program, prepares to take office later this month.
New automotive buyers even have income and vehicle price restrictions which will affect eligibility for the subsidy.
Volkswagen AG's ID.4 crossover has lost its full $7,500 tax credit, in line with the federal government's latest listing. Some other electric vehicles and plug-ins from Ford Motor Co., Nissan Motor Co., Rivian Automotive Inc., Stellantis NV and VW Group that previously received as much as $3,750 at the moment are ineligible.
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