• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

3

Current price of oil as of June 10, 2026

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

3

Current price of oil as of June 10, 2026
TechElectric vehicles

Some EV cars are getting tax credits up to $7,500 and others are getting $0—Here’s how they stack up

By
Tom Krisher
Tom Krisher
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Tom Krisher
Tom Krisher
and
The Associated Press
The Associated Press
Down Arrow Button Icon
April 17, 2023, 1:03 PM ET
An electric vehicle is plugged into a charger in Los Angeles, Aug. 25, 2022.
An electric vehicle is plugged into a charger in Los Angeles, Aug. 25, 2022.Jae C. Hong—AP Images

Ten electric or plug-in hybrid vehicles will be eligible for a $7,500 U.S. tax credit, while another seven could get $3,750 under new federal rules that go into effect on Tuesday.

Recommended Video

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.

That could slow acceptance of electric vehicles and could delay reaching President Joe Biden’s ambitious goal that half of new passenger vehicles sold in the U.S. run on electricity by 2030.

The new rules, which govern how much battery minerals and parts can come from countries that don’t have free trade agreements with the U.S., bumped nine vehicles off the tax credit eligibility list that went into effect Jan. 1.

The 10 vehicles eligible for the full $7,500 credit are 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 seven models that could get a $3,750 credit include the Jeep Wrangler and Grand Cherokee plug-ins, Ford’s Mustang Mach-E SUV, Escape plug-in and E-Transit electric van, the Lincoln Corsair Grand Touring plug-in and the standard range rear-wheel-drive version of Tesla’s Model 3.

Consumers can check to see if the EV they’re considering is eligible for a credit at www.fueleconomy.gov.

To be eligible, electric vehicles or plug-ins have to be manufactured in North America. SUVs, vans and trucks can’t have a sticker price greater than $80,000, while cars can’t sticker for more than $55,000. There also are income limits for buyers.

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 a supply chain in the U.S.

Many of the vehicles that aren’t eligible for the credit are made outside of North American, but their manufacturers are building assembly and battery plants 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.

Kelley Blue Book says the average U.S. new EV costs about $58,600, nearly $10,000 more than the average new vehicle price. To be sure, average EV prices are falling as more people buy less-expensive models. The average EV price was $63,500 a year ago.

Jeff Schuster, executive vice president of LMC Automotive and Global Data, said half of the full tax credit isn’t enough. “You’re shrinking the market essentially by the vehicles not being affordable,” he said, adding that the average combustion engine vehicle isn’t affordable either.

The big issue in the rules that are effective Tuesday are 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.

This year, at least 40% of the value of battery minerals must be mined, processed or recycled in the U.S. or countries with which it has trade deals. That rises 10% every year until it hits 80% after 2026.

Also, at least 50% of the value of battery parts must be manufactured or assembled in North America this year. That requirement rises to 60% next year and in 2025 and jumps 10% each year until it hits 100% after 2028.

In addition to the price limits, there also are income limits aimed to stop wealthier people from getting credits. Buyers cannot have an adjusted gross annual income above $150,000 if single, $300,000 if filing jointly and $225,000 if head of a household.

In addition, starting in 2025, battery minerals cannot come from a “foreign entity of concern,” mainly China and Russia. Battery parts cannot be sourced in those countries starting in 2024; minerals can’t come from those countries in 2025.

The Biden administration said rules governing that requirement are in the works.

Even though the rules are effective Tuesday, the Biden administration is taking public comments, and they can be modified later, including the addition of countries that negotiate trade agreements with the U.S.

Last week the administration proposed strict new automobile pollution limits that would require up to two-thirds of new vehicles sold in the U.S. to be electric by 2032. That’s a nearly tenfold increase over current electric vehicle sales.

About the Authors
By Tom Krisher
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

The head of Claude Code hasn’t ‘written a line of code by hand’ in 8 months
ConferencesBrainstorm Tech
The head of Claude Code hasn’t ‘written a line of code by hand’ in 8 months
By Nick LichtenbergJune 11, 2026
21 minutes ago
Stranded on a Denver tarmac, Booking.com’s CEO envisions the AI that should have rerouted him to Aspen before takeoff
AIBrainstorm Tech
Stranded on a Denver tarmac, Booking.com’s CEO envisions the AI that should have rerouted him to Aspen before takeoff
By Sydney LakeJune 11, 2026
1 hour ago
Shaun White, wearing a jacket with a fur-lined hood, looks up.
SuccessBrainstorm Tech
Olympic champion Shaun White says AI is ‘leveling the playing field’ for professional athletes
By Sasha RogelbergJune 11, 2026
2 hours ago
Meet the SpaceX employees who are set to become multimillionaires thanks to its IPO: from execs to even welders
SuccessWealth
Meet the SpaceX employees who are set to become multimillionaires thanks to its IPO: from execs to even welders
By Preston ForeJune 11, 2026
2 hours ago
ice
LawImmigration
Westchester County built a 600-camera plate reader network that shared 1.6 billion scans with ICE, lawsuit says
By Byron Tau and The Associated PressJune 11, 2026
3 hours ago
brazil
Arts & EntertainmentWorld Cup
Brazil’s biggest soccer broadcaster Is now a guy who started on Twitch. He beat Globo
By Nick Lichtenberg, Tales Azzoni and The Associated PressJune 11, 2026
3 hours ago

Most Popular

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
22 hours ago
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
3 days ago
Current price of oil as of June 10, 2026
Personal Finance
Current price of oil as of June 10, 2026
By Joseph HostetlerJune 10, 2026
1 day ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
3 days ago
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
Innovation
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
2 days ago
A ‘MAGA Warrior’ Texas ag chief is publicly blasting the USDA over a flesh-eating pest threatening America's beef supply
North America
A ‘MAGA Warrior’ Texas ag chief is publicly blasting the USDA over a flesh-eating pest threatening America's beef supply
By Marco Quiroz-GutierrezJune 10, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.