10 models qualify for full revamped EV tax credit under Democrats’ climate law

Ten car models qualify for full electric vehicle tax credits for consumers under the Democrats’ Inflation Reduction Act, according to a list released on Monday. 

The climate, tax and healthcare law lifted a cap on how many vehicles can qualify for the EV tax credits, but also added new stipulations on which vehicles qualify. 

For a new vehicle, a consumer can get a $3,750 credit if a portion of the car’s battery components were made in North America and another $3,750 if a portion of the battery’s minerals were mined or processed in countries with which the U.S. has a free trade agreement. 

With those stipulations slated to take effect on Tuesday, the Biden administration on Monday made a list of vehicles that qualify for some or all of the credit. 

Sixteen models qualify for at least some of the credit, with 10 qualifying for the full credit. Included in those 10 is Tesla’s Model 3, which only qualifies if it is the “performance” version — otherwise it only qualifies for $3,750.

The full list of qualifying vehicles can be found online. 

The stipulations were championed by Sen. Joe Manchin (D-W.Va.) who argues they are necessary to build secure supply chains, though opponents say they could be too restrictive and ultimately stifle electric vehicle adoption. 

Vehicles purchased prior to Tuesday operated under different rules. 

According to an administration official, preliminary analysis shows that 65 percent of first quarter electric vehicle sales qualified for the tax credit, and more than 90 percent remain eligible under the updated requirements. 

The official also noted that since the law’s passage last year, more than $45 billion has been invested by private companies on electric vehicle and battery supply chains. 

The Biden administration broadly has expressed support for electric vehicle adoption as part of an effort to combat climate change. Last week, the Environmental Protection Agency proposed a new rule that is expected to significantly amp up how many electric vehicles are sold in the U.S.