EV Tax Credit Changes: Which Vehicles Will Lose Instant Rebates in 2022?

Starting January 1, 2024, new rules for EV tax rebates will require a lower MSRP cap and a battery built in the U.S. to be eligible. EVs with battery materials sourced from China, North Korea, and Russia will receive no federal incentive. Cars with at least 50% of materials sourced in North America or countries with free trade agreements with the U.S. will be eligible for a $3,750 rebate. EVs must have at least half of their battery components sourced and assembled in the U.S., Canada, or Mexico, and critical minerals must be sourced from a country with a free trade agreement. Some cars, like the Ford Mustang Mach-E and Tesla Model 3, will no longer be eligible for the full rebate. However, vehicles like the Cadillac Lyriq, Chevrolet Bolt, and Chrysler Pacifica PHEV remain eligible for the full rebate.