- Popular models from Volkswagen and Rivian no longer qualify
- Nissan Leaf drops off the list
- Tesla, Kia, Hyundai and Chevrolet among those with the largest choice
Rewind a couple of years and any EV manufactured in the US was eligible for a federal tax credit of up to $7,500, but the goalposts have since been shifted as the Biden administration introduced rules that clamped down on any electric vehicle with battery components hailing from any “foreign entity of concern” (FEOC) – which includes China.
Despite many automakers aiming to switch suppliers and rid future vehicles of components from blacklisted locations, the number of EVs eligible for the federal tax credit has been on the wane… and the choice for 2025 is more restricted than ever.
The popular (and relatively affordable) Nissan Leaf has dropped from the list, while Volkswagen’s ID.4 model, arguably the best of all the ID models on sale, is also nowhere to be seen.
Rivian has also seen all variants of the R1S and the R1T fail to meet eligibility requirements, while the delightfully affordable but out-of-production Chevrolet Bolt also no longer qualifies. Alas, you would be hard pushed to find inventory for this run-out model anyway.
Unless you are in the market for a Tesla, including Model 3, Model X, Model Y and Cybertruck, the 2025 list of eligible models makes for rather brisk reading.
Chevrolet fans can now plump for a Blazer EV, Equinox EV or Silverado EV, so long as the retail price doesn’t exceed $80,000. Where the Silverado is concerned, that doesn’t leave many options.
The Ford F-150 Lighting is the only model from the Blue Oval that is now eligible for tax credits, while the Honda Prologue and Genesis GV70 Electrified offer a couple of Japanese alternatives.
The Hyundai Motor Group, which includes Kia and Hyundai, seem to have their ducks in a row, as four models are eligible for tax credits between the two brands, including Kia EV6 and EV9, as well as Ioniq 5 and the recently released Ioniq 9 seven-seat SUV.
Analysis: EVs face turbulent times in the US
President-elect Donald Trump is yet to stipulate exactly what will happen with electric vehicle tax credits, nor give an indication on where he stands concerning the technology. This means the list of eligible vehicles is likely to change over the coming months… or could disappear entirely.
However, there has been a legal loophole that means the full $7,500 tax credit can be applied to any electric vehicle, regardless of the origins of its components, should the customer choose to lease the vehicle, rather that purchase it outright.
This is because a lease is considered a commercial sale to the leasing company and is eligible for a separate commercial vehicle tax credit, according to Consumer Reports.
Regardless, the uncertainty surrounding the future of electric vehicles in the US is having a negative effect on sales, seeing adoption of the new technology lag well behind that of Europe and Asia.
Even Tesla, which has long been the best-selling EV brand in the US, recently posted its quarter four sales and deliveries results, which revealed the first annual drop in delivery numbers for the company, causing its share price to fall by as much as 7%.
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