But under the Treasury Department rules and other provisions of last year's Inflation Reduction Act, most of the more than 60 electric or plug-in hybrids on sale in the U.S. won't get any tax credits.
The 10 vehicles eligible for the full $7,500 credit include Tesla's Model 3 Performance model, the Tesla Model Y, Ford's F-150 Lightning pickup, the Chrysler Pacifica and the Lincoln Aviator Grand Touring plug-in hybrids. Also, General Motors will have five models eligible this year including its top-selling Chevrolet Bolt and Bolt EUV, as well as the Cadillac Lyriq, the Chevrolet Silverado electric pickup and the upcoming Chevy Equinox small SUV.
The Treasury Department says the new list shows that families who want to buy an electric or plug-in vehicle"will continue to have a number of options to receive a full or partial tax credit in the near term" under rules designed to build electric vehicle production and supply chain in the U.S. Some auto industry analysts say that while $7,500 would be enough to entice people away from internal combustion vehicles, a $3,750 tax credit might not be enough to offset the average U.S. new EV price.
The big issue in the rules that are effective Tuesday is a new set of limits on the percentage of battery parts and minerals that come from countries that don't have free trade or mineral agreements with the United States.