by David Shepardson

WASHINGTON (Reuters) – Many electric vehicles (EVs) in the United States lost their eligibility for tax credits of up to $7,500 after new battery supply rules took effect on Monday .

The Nissan Leaf EV, Tesla Cybertruck, certain versions of the Tesla Model 3 and the Chevrolet Blazer EV, among others, have been removed from the list of cars eligible for the US Treasury tax credit.

The department published guidelines in December detailing new battery supply requirements, with the aim of favoring local manufacturing, at the expense of China. These guidelines came into effect on Monday.

The number of electric vehicle models eligible for the tax credit was reduced from 43 to 19. These figures include different versions of the same type of vehicle. The Treasury said some manufacturers had not yet provided information on eligible vehicles, which could lead to changes to the list.

The Volkswagen ID.4, the Tesla Model 3 Rear Wheel Drive, the BMW X5 xDrive50e, the Audi Q5 PHEV 55, the Cadillac Lyriq and the Ford E-Transit are also among the failed vehicles.

The Inflation Reduction Act of 2022 reformed the electric vehicle tax credit, requiring that they be assembled in North America to qualify.

(Reporting David Shepardson, Kate Entringer)

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