Most electric vehicles will not qualify for $7,500 tax credit

Most electric vehicles will not qualify for $7,500 tax credit

Most electric vehicles would not qualify for $7,500 federal tax credits included in Democrats’ sweeping economic bill due to restrictions over manufacturing and materials. The revelation has a major automotive group sounding the alarm, saying the credits will derail manufacturers’ efforts to have EVs make up half of their sales by 2030.

The Alliance for Automotive Innovation, which represents GM, Toyota and Volkswagen, said the requirements will make most of their vehicles immediately ineligible and jeopardize sales targets put forth by manufacturers and the Biden administration.

“It’s not an overreaction,” The Car Coach Lauren Fix told Straight Arrow News. “First thing is that you can get the $7,500 tax credit if the vehicle is built in North America, well, that’s only about half of the vehicles that are produced. And then in addition to that, the batteries cannot have Chinese products or be built in China, and that’s going to take out the bulk of those batteries out of it.”

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