Overview

• New rules under the Inflation Reduction Act limit the countries where automakers can buy battery parts and minerals, reducing the number of electric vehicles (EVs) that qualify for tax credits in the U.S.
• Only 13 of the more than 50 EVs on sale in the U.S. are eligible for the credits so far this year, down from about two dozen models that qualified in 2023.
• The Tesla Model Y SUV, Chevrolet Bolt compact car and Rivian R1T pickup truck still qualify for the tax credits.
• Leased EVs are not affected by the new rules as they are considered 'commercial vehicles', allowing consumers to get the full amount of the credit with a lease even if the vehicle wouldn't qualify via a purchase.
• Despite the reduced selection of tax-credit-eligible EVs, experts expect only a passing impact on growing consumer acceptance, as automakers work to get their models qualified.