Some EVs to Lose Tax Credit Status
Updated rules restrict eligibility due to materials sourced in countries the U.S. wants to distance from.
The Ford F-150 Lightning will maintain eligibility for the full $7,500 tax credit.
IMAGE: Ford
Ford and General Motors said they expect some of the electric-vehicle models will at least temporarily lose eligibility for a federal tax credit after the new year due to stricter limits.
Ford said its Mach-E and Lincoln Aviator Grand Touring hybrid will no longer be eligible for a credit but that its F-150 Lightning will keep the full $7,500 tax break, according to news reports.
GM said its Cadillac Lyriq and Chevrolet Blazer won’t be eligible after the new year. Its Chevrolet Bolt EV will continue to be eligible.
The loss of eligibility is due to some EV materials being sourced in overseas markets the U.S. has barred as EV component sources. The Biden administration has enacted such restrictions in order to limit U.S. reliance on some overseas markets, particularly China.
The credits are intended to spur EV adoption to help ease climate-degrading pollution and to increase domestic electric-vehicle component manufacturing and sourcing for greater independence.
Tesla has said some of its models will also lose eligibility under the updates rules.
Originally posted on Auto Dealer Today
More Industry
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →