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The Biden Administration and the Treasury Department are agreeing to tweak the new rules about the EV tax rebates. The automakers have been lobbying the administration to change the rules so that more vehicles, especially SUVs would qualify. The changes are great news for anyone wanting to buy a 2023 Jeep Grand Cherokee 4xe or Jeep Wrangler 4xe. The changes also help buyers wanting the 2023 Cadillac LYRIQ, Chevrolet Bolt, Mustang Mach E and some Tesla models.
Complicated Qualification Rules
The rules about which vehicles qualify for the new $7,500 tax rebates are quite complicated and originally disqualified several models based on price. It also complicated the definition over what was an SUV or a wagon. To qualify, the vehicles have to be assembled in the Americas and the batteries or battery components are supposed to be sourced in the Americas. There is also an income cap on who can qualify for the rebate.
The EV tax credits are part of the Inflation Reduction Act and are intended to encourage people to buy electric or electrified vehicles. Under the new rules, SUVs can be priced at up to $80,000 to qualify for EV tax credits, while cars, sedans and wagons have to be priced at or under $55,000. Under the previous version, some vehicles didn’t qualify to be considered an SUV because they didn’t weigh enough and the vehicles were too expensive to qualify as a wagon.
According to the new rules, these are just some of the vehicles that should qualify:
- 2023 Jeep Grand Cherokee 4xe
- 2023 Jeep Wrangler 4xe
- 2023 Chrysler Pacifica Plug-in Hybrid
- 2023 Chevrolet Bolt or Bolt EUV
- 2023 Cadillac LYRIQ
- 2023 Ford Mach E
- 2023 Ford F-150 Lightning
- 2023 Ford Escape Plug-in Hybrid
Lincoln, Tesla and several German manufacturers also have vehicles that may qualify depending on pricing and where the vehicles are assembled. The Chevrolet Silverado work truck and the GMC Sierra pickup may also qualify depending on their final pricing. The 2024 Chevrolet Corvette E-Ray is definitely too expensive to qualify. Be sure and check with your dealer about qualifications before signing any final papers.
Jeep Photo
Mary Conway is a professional automotive journalist and has decades of experience specializing in automotive news analysis. She covered the Detroit Three for more than twenty years for the ABC affiliate, in Detroit. Her affection for the Motor City comes naturally. Her father ran a gas station while Mary was growing up, in Wisconsin.
Follow Mary Conway at @maryconwaymedia and send her car news tips for future stories.
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