EV Tax Credit 2023 For More Electric Vehicles

U.S. President Biden has authorized more SUVs to qualify for the new EV Tax Credit 2023. This change effectively increased the number of buyers who can qualify for the tax credits.

On February 10, the U.S. Department of the Treasury announced that U.S. President Joe Biden has authorized more SUVs to qualify for the new EV Tax Credit 2023. This announcement was made after being called on by automakers like Stellantis NV and General Motors Co. The announcement increased the number of buyers who can qualify for the EV Tax Credit 2023 which is important because of the Inflation Reduction Act (IRA). Under the IRA, SUVs that cost up to $80,000 are qualified for the tax credits. However, passenger cars that cost more than $55,000 receive nothing.

An article on Bloomberg states that the Treasury Department will start using the Environmental Protection Agency’s fuel economy labeling to determine which electric vehicles would qualify for an SUV. This change is retroactive to January 1 which means electric vehicles under the new qualification can receive the EV Tax Credit 2023.

READ ALSO: $4,000 Electric Vehicle Tax Credit For Used Vehicles— See Who Qualifies

More Electric Vehicles are Qualified

According to Shepardson, models like the high-end Ford Motor Co.’s Mustang Mach-E. and Tesla Inc.’s Model Y and General Motor Co.’s new $63,000 Cadillac Lyriq are qualified for the EV Tax Credit 2023. Reportedly, Ford and Tesla have recently reduced the prices of the Mach-E and Model Y to be able to qualify them for the previous standard. This change can also authorize vehicles like Volkswagen AG’s ID.4 and Ford’s Escape Plug-in Hybrid SUV to qualify for the tax credits. Unfortunately, the Treasury Department has reported plans to announce the new Inflation Reduction Act requirements for EV batteries and critical minerals in March. This announcement could exclude many of the models from qualifying for the EV Tax Credit 2023.

READ ALSO: Up To $40,000 Electric Vehicle Tax Credit For New Vehicles— See Who Qualifies