These EVs Qualify for Tax Credits in 2024

At the beginning of this year, we put out a piece detailing why and how fewer EVs will qualify for tax credits in 2024.

As of 2024, a series of new rules have completely changed the landscape of EV subsidies.

Under the updated IRS rules, for a vehicle to qualify for the tax credit, it must be assembled in the US and adhere to specific price caps: $55,000 for cars and $80,000 for SUVs and trucks. Additionally, the standard $7,500 tax credit is now split into two parts, each worth $3,750, with stringent requirements related to battery sourcing.

For example, to be eligible for the credits, battery components cannot be sourced from companies controlled by China. Additionally, one part of the credit focuses on the sourcing of raw materials like lithium, graphite, and cobalt, which must come from the US or a trade partner. The other part pertains to the manufacturing of battery components such as anodes, cathodes, and electrolytes, which must be produced or assembled in North America. These criteria are aimed at reducing reliance on China for critical battery components, promoting supply chain security, and protecting US jobs, and will likely become more rigorous annually.

Recently, the US Department of Energy released its list of vehicles that will actually qualify for federal tax credits in 2024. Read on to learn about the vehicles that qualify for federal tax credits in 2024.