U.S. President Joe Biden signed the Inflation Reduction Act on Tuesday, including a crucial tax credit of $7,500 on electric vehicle (EV) purchases.
According to Automotive News, the Biden Administration said on Tuesday that around 20 EV models will remain eligible for the $7,500 EV credit through the end of 2022.
The Alliance for Automotive Innovation said that nearly 70 percent of the 72 previously eligible EVs immediately lost eligibility upon Biden signing the act into law.
In a statement at the White House, Biden said, “With this law, the American people won and the special interests lost.” Biden continued, “It’s about delivering progress and prosperity to American families.”
Biden Admin Quietly Asked Tesla for Help in Crafting Renewable Fuel Policy:Â Report https://t.co/lPHmBiP2T7
— TeslaNorth.com (@RealTeslaNorth) June 23, 2022
On January 1, the act will make several EVs ineligible for the credit due to new price caps and regulations, though automakers such as General Motors (GM) and Tesla are set to regain eligibility.
To qualify for the updated tax credit, EVs must be assembled in North America. Tesla’s vehicles will become eligible for the tax credit on January 1, after the automaker lost tax credits due to reaching the 200,000-vehicle sales cap.
The EVs currently eligible through the end of the year include a 2022 model year and are as follows:
