Which automakers will be affected by the US EV tax credit changes?

Question

Accepted Answer

Automakers Facing Loss of US EV Tax Credits Under New Legislation

Audi of America, Kia Corp, and Porsche have announced that their customers will soon lose access to federal tax credits of up to US$7,500 for electric vehicle purchases. This change is a direct consequence of President Joe Biden signing a significant US$430 billion climate, health, and tax measure into law. The legislation introduces new assembly location requirements, making vehicles not assembled in North America ineligible for these credits.
Audi and Porsche to See Immediate Impact

The Volkswagen AG unit, Audi, stated that only its plug-in hybrid electric models will retain their existing federal credit eligibility through the end of the current year. However, buyers of Porsche's electric Taycan and its plug-in hybrid Cayenne and Panamera models will immediately lose their eligibility once the legislation is enacted. A spokesperson for Porsche Cars North America indicated that credit eligibility for customers with outstanding orders depends on individual sales agreements with dealerships.
Kia Urges Dealers to Secure Contracts

Kia has informed its US dealers that its entire range of electric and plug-in vehicles will cease to qualify for tax credits immediately after the bill is signed, unless customers have already secured written binding contracts. The company has urged its dealerships to proactively contact customers on waiting lists to finalize contracts before the legislation takes effect. Kia described this "sudden change" in EV tax policy as "very disruptive to our business and unfortunately for our customers."
Broad Impact on Qualifying EVs

The Alliance for Automotive Innovation, representing major automakers including Volkswagen, General Motors Co, Toyota Motor Corp, and Ford Motor Co, has estimated the wide-ranging impact of the new law. The trade group indicated that approximately 70 per cent of the 72 electric, plug-in hybrid, and fuel-cell EVs currently eligible for tax credits will become ineligible as soon as President Biden signs the bill. Further restrictions, including income and price caps, along with new battery and critical mineral sourcing rules, are set to take effect on January 1, potentially disqualifying all vehicles from the full credit.

Reading history

Hide →

This history is cleared when the page is closed.

Which automakers will be affected by the US EV tax credit changes?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends