Remove Hybrid Remove PHEV Remove Prius Remove South Korea
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3 Scenarios That Would Make An EV Ineligible For the Federal EV Tax Credit

EV Adoption

Battery is under 10kWh: Currently only five PHEVs would not meet the proposed 10 kWh threshold: Toyota Prius Prime (8.8 kWh) Subaru Crosstrek Hybrid (8.8 kWh) Hyundai IONIQ PHEV (8.9 kWh) Kia Niro PHEV (8.9 Of these five, the Toyota Prius Prime is the only one that sells in any significant volume.

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Zero EVs May Qualify For the Federal Tax Credit Under the Inflation Reduction Act Requirements

EV Adoption

The critical materials in the battery that were extracted or processed in a country with a free trade agreement (which includes Australia, Chile, South Korea, etc.) This means EVs like the Mustang Mach-E which is assembled in Mexico, and the Chrysler Pacifica Hybrid (PHEV) which is assembled in Canada, would qualify.

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Proposed Changes to the Federal EV Tax Credit Passed by the House of Representatives

EV Adoption

Probably the most needed and least controversial proposed change is the elimination of the phaseout of the tax cap that begins in the quarter after a manufacturer sells 200,000 BEVs or PHEVs in the US. Of these five, the Toyota Prius Prime is the only one that sells in any significant volume. kWh battery.