New EV Tax Credit Rules Shake Up Eligibility for 2025

Hyundai, Kia, and Tesla models join the list, while Rivian, Volkswagen, and others lose eligibility under stricter sourcing requirements.

• Hyundai and Kia models, including the Ioniq 5, EV6, and EV9, now qualify for the $7,500 federal EV tax credit due to domestic production changes.
• The Tesla Cybertruck has regained eligibility for the tax credit, with its 2025 Single and Dual Motor models now qualifying.
• Stricter battery sourcing rules introduced on January 1, 2025, have removed several models from the eligibility list, including Rivian's R1T and R1S, Volkswagen's ID.4, and the Nissan Leaf.
• The number of eligible plug-in hybrid models has significantly decreased, with the Chrysler Pacifica now being the only qualifying PHEV.
• Uncertainty surrounds the future of the tax credit as incoming President Donald Trump has expressed intentions to potentially eliminate it.

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