Sign up now for FREE unlimited access to Reuters.com Register WASHINGTON, Aug 16 (Reuters) – The Biden administration said on Tuesday that 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 signed Tuesday immediately ends the credits for about 70 percent 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. Sign up now for FREE unlimited access to Reuters.com Register New restrictions on battery and mineral supply and price and income caps will come into effect from January 1 that will make all or nearly all electrics ineligible, the car group said. The new supply rules will increase annually. The auto group said it will work with the administration “as they issue critical guidance and new regulations – so the EV tax credit is as available and beneficial to consumers as possible.” Currently eligible vehicles are 2022 EV or plug-in hybrid electric versions of the Audi Q5. BMW ( BMWG.DE ) X5 and 3-Series Plug-in. Ford (FN) Mach-E, F-Series, Escape PHEV and Transit Van; Chrysler ( STLA.MI ) Pacifica PHEV, Jeep Grand Cherokee PHEV and Wrangler PHEV; Lincoln Aviator PHEV and Corsair Plug-in. Clear (LCID.O) Air; Nissan (7201.T) Leaf; Volvo (VOLVb.ST) S60; and Rivian ( RIVN.O ) EDV, R1S and R1T. The 2023 Nissan Leaf, BMW 3-Series and Mercedes ( MBGn.DE ) EQS are also eligible. Some models are made both in North America and abroad, and consumers should check their vehicle identification numbers to ensure eligibility, the Treasury Department said. The signing ends eligibility for EVs sold by Toyota ( 7203.T ), Hyundai ( 005380.KS ), Porsche ( PSHG_p.DE ), Kia ( 000270.KS ) and others. Buyers still qualify if they had binding written contracts before Biden’s signature, and some automakers have urged customers to make portions of deposits nonrefundable to qualify. The IRS said that “if a customer has made a non-refundable deposit or down payment of 5% of the total contract price, this is evidence of a binding contract.” The law makes General Motors ( GM.N ) and Tesla ( TSLA.O ) eligible for EV tax credits starting Jan. 1. They lost credits after previously reaching the cap of 200,000 vehicles per manufacturer. It’s unclear how many of their models will be eligible in 2023 with the supply and price caps. In 2024, EV buyers can transfer credits to dealers at the point of sale to reduce purchase prices. Also in 2024, rules come into effect making vehicles ineligible if they have content from a “foreign entity of concern,” a provision intended to block Chinese content. Management should write rules specifying which countries and companies are covered. Sign up now for FREE unlimited access to Reuters.com Register Report by David Shepardson. Edited by Marguerita Choy and Chris Reese Our Standards: The Thomson Reuters Trust Principles.
