VW and Rivian are once more eligible for federal tax credits for EVs.
The number of EVs eligible for federal tax credits has already increased. A number of electric vehicles have been reinstated on the list of vehicles that receive at least some credit from the US government. The upcoming Chevy Blazer EV, Equinox EV, and Silverado EV receive the full $7,500 incentive, as does the 2023 VW ID.4, the first model made in the United States. Rivian R1T and R1S purchasers can likewise get a $3,750 credit given their configuration slips under the $80,000 cap.
Only six electric vehicles were eligible for the full tax credit when the Internal Revenue Service created the original list. This included 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, such as the Chrysler Pacifica PHEV and Ford Mustang Mach-E, only received partial credits.
In March, the Treasury Department outlined stricter requirements for EV tax credits. To be qualified for $3,750, a car’s battery components should be 50% made or collected in North America. To earn an additional $3,750, at least 40% of the key minerals must originate in the United States or its free trade partners. By 2029, batteries must be entirely produced in North America for vehicles to continue qualifying.
This makes the ID.4 a better deal, as VW insists. After taking into account the tax credit, the entry-level Standard trim costs $31,495 It may appear to be a bargain in comparison to even the less expensive Model 3, if you are willing to live with the 209-mile range. With 275 miles of range, you’ll probably want to buy the ID.4 Pro, but that’s still more affordable at $36,495 after the incentive.
Additionally, this may aid in bringing Chevy’s upcoming EV lineup within reach. The Equinox specifically is supposed to begin around $30,000 — a full credit would cost it beneath numerous traditional SUVs, not to mention charged forms. The discount may help the United States meet the climate goals that prompted the Inflation Reduction Act, as it did with Volkswagen.