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These are the 10 EVs eligible for instant tax rebates in the US in 2024

December 8, 2023
in Business
These are the 10 EVs eligible for instant tax rebates in the US in 2024
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Image for article titled These are the 10 EVs eligible for instant tax rebates in the US in 2024

Image: Cadillac

The rules surrounding EV tax rebate eligibility will change in the US in 2024. There are still a lot of unanswered questions about which cars will be eligible for the full $7,500 federal incentive. Unlike the current system, which requires you to take the discount from the purchase of the car as a reduction in your tax bill when you file taxes, the new system will allow dealers to take the full amount as an instant discount from your purchase price, and it’ll be applied to your taxes after the fact. The new system is a bit more stringent, however, requiring a lower MSRP cap and a battery built in the US to be eligible. So which cars fit the bill?

The point of this change is to provide incentives for automakers to build their batteries and source their materials in the US as an effort to prop up the US industry against China’s dominance. China currently produces about 70% of all electric vehicle batteries, and this federal program seeks to level the playing field a bit. EVs with battery materials sourced from “foreign entities of concern” (China, North Korea, and Russia, namely) will get no federal incentive at all. Cars with at least 50% of materials sourced in North America, or another of the 20 countries the US has a free trade agreement with, will be eligible for $3,750 of the rebate.

To get the full rebate amount, EVs will need to have at least half of their battery components sourced and assembled in the US, Canada, or Mexico specifically, plus the critical minerals—lithium, nickel, cobalt, manganese, and graphite—need to have been sourced from a country the US has a free trade agreement with. Even if your EV meets all of these criteria, it could get no federal support if you make too much money (over $150,000 for individuals), or it costs too much. Sedans have a price cap of $55,000, while SUVs have a price cap of $80,000.

These new rules have pushed a few cars off the rebate list entirely, and others have had their status reduced from the full rebate to just half. For example, Ford says the Mustang Mach-E will likely no longer be eligible for any rebate starting Jan. 1. Tesla, meanwhile, says the Model 3 RWD and Long Range will have their incentives reduced to $3,750. The Volkswagen ID.4 and Nissan Leaf also seem to be falling off the list.

So which cars are still eligible for the full boat? Let’s find out.

Image for article titled These are the 10 EVs eligible for instant tax rebates in the US in 2024

Image: Cadillac

The Lyriq has a silly name, but looks gorgeous and seems to be priced really well in the market. It starts at $58,590, so with the rebate you can theoretically get a base model for just a smidge over $50,000.

Image for article titled These are the 10 EVs eligible for instant tax rebates in the US in 2024

Image: Chevrolet

The Blazer EV starts at $56,715, and it’s certainly a fetching automobile. I’m not sure I’d pick one of these over a Lyriq, but it’s an option.

Image for article titled These are the 10 EVs eligible for instant tax rebates in the US in 2024

Image: Chevrolet

Bolt remains one of the best cheap EVs on the market, and with the full $7,500 rebate will technically start under $20,000. If you’re looking for a good cheap commuter, you can’t really go wrong with this one.

Image for article titled These are the 10 EVs eligible for instant tax rebates in the US in 2024

Image: Chevrolet

If the Bolt is too small for you, the Equinox is supposed to start around $35,000 before incentives, and will provide a much larger interior for you and your family. It looks okay, I guess.

Image for article titled These are the 10 EVs eligible for instant tax rebates in the US in 2024

Image: Chevrolet

The Silverado EV won’t be cheap, starting at around $75,000, but it still falls under that $80,000 threshold. You’ll have to be very selective about your options if you want to get the tax rebate, but if you need a truck it might be an option.

Image for article titled These are the 10 EVs eligible for instant tax rebates in the US in 2024

Image: Ford

If you really want an electric truck, you’re probably looking at the Ford F-150 Lightning. With a starting price of $49,995, it’s a bit closer to reality for most Americans. You would be able to option one pretty well and still fall under the rebate MSRP cap, too.

Image for article titled These are the 10 EVs eligible for instant tax rebates in the US in 2024

Image: Tesla

The Tesla Model 3 Performance starts at $50,990, so you can’t add a lot to this car in order to get it under the incentive structure. You can get an optional $2,000 paint color, but the $6,000 driver assistance “Autopilot” package would put it over the limit.

Image for article titled These are the 10 EVs eligible for instant tax rebates in the US in 2024

Image: Tesla

The Tesla Model Y Performance is a bit more expensive than its Model 3 counterpart at $52,490, but it’s labeled an SUV rather than a sedan, so you can go wild with options. It isn’t clear if the RWD Model Y and Model Y Long Range have batteries that fit the criteria of the incentive structure, so you’ll have to ask Tesla when you order if it is or not when the time comes. If it does fit the program, you might be able to get a Tesla for less than $40,000 after incentives.

Image for article titled These are the 10 EVs eligible for instant tax rebates in the US in 2024

Image: Tesla

The Dual Motor All-Wheel Drive Model X is technically eligible as an SUV with a $79,990 price tag. You won’t be able to get any options, though, so I hope you like your falcon-winged egg in white.

Image for article titled These are the 10 EVs eligible for instant tax rebates in the US in 2024

Image: Chrysler

The only plug-in hybrid on the list eligible for the full $7,500 is the Chrysler Pacifica PHEV. It has a battery large enough to qualify, and its materials are all sourced from and made in North America. Isn’t that neat? If you were looking for a van, here’s a good way to save fuel and get a $7,500 coupon.

There are currently only 10 vehicles sold in the US that are eligible for the full federal rebate. Big three plus Tesla, that’s it. There are a few that still qualify for the half-rebate rate, and a few more PHEVs, but not many. Personally, I hope all of these tax rebates are spent on Bolts, because that’s a good cheap car for people who have been complaining that there are no cheap EVs. If you actually go buy the cheap EVs, maybe more companies will offer cheap EVs.

This article originally appeared on Jalopnik.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Quartz – https://qz.com/these-are-the-10-evs-eligible-for-instant-tax-rebates-i-1851082044

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