Not all electric vehicle brands qualify for the tax credit. To be eligible for the clean vehicle tax credit up to $7,500, several conditions must be met:
- Assembly Location: The vehicle must be assembled in North America, which includes Canada and Mexico. This means vehicles assembled elsewhere, such as the BMW i4, Hyundai Ioniq 5, Kia EV6, and Toyota bZ4X, do not qualify.
- Battery Sourcing: The vehicle must meet specific battery sourcing requirements. This includes having a certain percentage of the battery assembled or manufactured within North America, which varies by year: in 2023, it was 50%, increasing to 60% in 2024 and 2025, then rising further in subsequent years.
- Critical Minerals Requirement: To receive the full credit, the vehicle must also meet critical minerals requirements, where a certain percentage of critical minerals in the battery must be extracted or processed within the U.S. or within a country with which the U.S. has a free-trade agreement.
- Vehicle Type and Price: The vehicle type and price are also factors. For SUVs, pickup trucks, and vans, the MSRP must not exceed $80,000, while sedans, hatchbacks, wagons, and other vehicles have a limit of $55,000.
- Use and Purchase: The vehicle must be purchased for personal use, not for resale, and primarily used in the U.S.
Therefore, only vehicles meeting these criteria, purchased by individuals or businesses with a modified adjusted gross income below specified thresholds, are eligible for the tax credit.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/do-all-electric-vehicle-brands-qualify-for-the-tax-credit/
