{"id":47582,"date":"2023-04-17T12:03:49","date_gmt":"2023-04-17T16:03:49","guid":{"rendered":"http:\/\/autosector.com\/?p=47582"},"modified":"2023-04-17T12:03:49","modified_gmt":"2023-04-17T16:03:49","slug":"ev-tax-credits-end-vw-rivian-nissan-bmw-genesis-audi-volvo","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=47582","title":{"rendered":"VW, Rivian, Nissan, BMW, Genesis, Audi and Volvo lose EV tax credits starting tomorrow"},"content":{"rendered":"

The U.S. Treasury said Monday that Volkswagen, BMW<\/a>, Nissan, Rivian, Hyundai and Volvo electric vehicles will lose access to a $7,500 tax credit under new battery sourcing rules.<\/p>\n

The Treasury said the new requirements effective Tuesday will also cut by half credits for the Tesla Model 3<\/a> Standard Range Rear Wheel Drive to $3,750 but other Tesla models will retain the full $7,500 credit.<\/p>\n

Vehicles losing credits Tuesday are the BMW 330e<\/a>, BMW X5<\/a> xDrive45e, Genesis Electrified GV70<\/a>, Nissan Leaf<\/a> , Rivian R1S<\/a> and R1T<\/a>, Volkswagen ID.4<\/a> as well as the plug-in hybrid electric Audi Q5<\/a> TFSI e Quattro and plug-in hybrid (PHEV) electric Volvo S60<\/a>. The Swedish carmaker is 82%-owned by China\u2019s Zhejiang Geely Holding Group.<\/p>\n

The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden’s effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs.<\/p>\n

Hyundai said in a statement it was committed to its long-range EV plans and that it “will utilize key provisions in the Inflation Reduction Act to accelerate the transition to electrification.”<\/p>\n

Rivian declined to comment and the other automakers could not immediately be reached for comment.<\/p>\n

Treasury also disclosed General Motors electric Chevrolet<\/a> Bolt and Bolt EUV<\/a> will qualify for the full $7,500 tax credit.<\/p>\n

GM said earlier it expected at least some of its EVS would qualify for the $7,500 tax credit under the new rules, including the 2023 Cadillac<\/a> Lyriq and forthcoming Chevrolet Equinox<\/a> EV SUV and Blazer<\/a> EV SUV. Treasury said all GM EVs will qualify.<\/p>\n

Earlier, Ford<\/a> Motor and Chrysler-parent Stellantis said most of their electric and PHEV models would see tax credits halved to $3,750 on April 18. Treasury confirmed the automakers’ calculations.<\/p>\n

The rules were announced last month and mandated by Congress in August as part of the $430<\/a> billion Inflation Reduction Act (IRA).<\/p>\n

The IRA requires 50% of the value of battery components be produced or assembled in North America to qualify for $3,750, and 40% of the value of critical minerals sourced from the United States or a free trade partner for a $3,750 credit.<\/p>\n

The law required vehicles to be assembled in North America to qualify for any tax credits, which in August eliminated nearly 70% of eligible models and on Jan. 1 new price caps and limits on buyers income took effect.<\/p>\n

Last week, the Environmental Protection Agency proposed new emissions rules that forecast 60% of new vehicle sales in 2030 would be EVs.<\/p>\n

A preliminary administration analysis found nearly 65% of first quarter EV sales qualified under North American final assembly and price cap requirements; more than 90% of those previously eligible first quarter sales remain eligible for at least a $3,750 credit.<\/p>\n

Treasury in December said EVs ineligible for the $7,500 consumer tax credit could qualify for a commercial leasing $7,500 credit.<\/p>\n

Related video:<\/strong><\/p>\n