By Keith Laing | Bloomberg
Tesla Inc.’s Cybertruck qualifies for up to $7,500 in US tax credits for the first time this year, part of reshuffling under tougher rules that took effect on Jan. 1 that also newly disqualify other electric vehicles for federal subsidies.
The number of EVs and plug-in hybrids currently qualified for a credit is 18 models, down from 22 last year, according to the Department of Energy and Environmental Protection Agency. The credit reclassification, part of President Joe Biden’s signature Inflation Reduction Act, tightens domestic sourcing requirements for battery parts and the raw materials used to build them.
The cut in the number of qualified EVs comes as overall demand for battery-electric models has softened and as President-elect Donald Trump, who’s threatened to end the federal subsidy program, prepares to take office later this month.
In addition to the Cybertruck, one of four Tesla models that qualify, electric vehicles from nine other brands also are eligible, including for the first time Hyundai Motor Co.’s Ioniq 5 and Ioniq 9 and sister brand Kia Corp.’s EV6 and EV9.
New car buyers also face limits on income and vehicle price that can impact eligibility for the subsidy.
Volkswagen AG’s ID.4 crossover lost its full $7,500 tax credit, according to the government’s latest listing. Some other EVs and plug-ins made by Ford Motor Co., Nissan Motor Co., Rivian Automotive Inc., Stellantis NV and VW group that previously received up to $3,750 are now ineligible.
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