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Good News and Bad News: Changes to the Federal EV Tax Credit in 2024

EV Life

Well, it’s 2024, the changes to the federal EV tax credit have officially taken effect, and it’s a bit of a mixed bag. The list of electric vehicles that qualify for the federal tax credit shrunk from 35 to 14, according to the US Department of Energy. Which Electric Vehicles Still Qualify for the Tax Credit?

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Tesla signs lithium supply agreement with China-based company 

Teslarati

According to local media outlets , the agreement states Tesla will purchase lithium carbonate products from Yahua from 2025 to 2027. The United States has labeled China, Russia, North Korea, Iran, and other countries as nations of concern. Tesla specifically signed a deal with Yahua Lithium Co., a subsidiary of Yahua Group.

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What happened to the Tesla Cybertruck & Model 3’s IRA tax credit eligibility? 

Teslarati

While many Tesla vehicles qualify for the IRA’s tax credits for electric vehicles (EVs), two Model 3 variants and the Cybertruck were left out of the current list. Tesla did not provide a reason for the Model 3 RWD and LR’s exclusion from the IRA tax credits list. The Cybertruck launched late last year in the US market.

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Which 2024 EVs qualify for the $7,500 EV tax credit?

Baua Electric

The list of electric vehicles qualified for the EV tax credit in calendar year 2024 has been released. Also of note: No Rivian electric truck qualifies for the full $7,500 tax credit amount in 2024, at this time. The credit amount on these models has fallen to $3,750. And as expected, it’s very short.

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Automakers handed a win with updated EV tax credit guidance in the U.S.

Teslarati

The White House issued new guidance on federal electric vehicle (EV) tax credits this week, including a key exemption that’s considered a win for many automakers, as it offers extra time for companies attempting to set up battery production operations in the U.S. These countries include North Korea, China, Russia and Iran.

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How New Eligibility Criteria for the Electric Vehicle Tax Credit Affects You

Blink Charging

Opting for an electric vehicle and leveraging the EV tax credit to help with your next electric vehicle purchase is a smart move. One such incentive is the Clean Vehicle Credit , a key component of the Biden administration’s Inflation Reduction Act. View IRS instructions for claiming credit.