More EVs Will Qualify for Tax Credits After US Reverses Course
- Treasury broadens definition of SUVs to include more vehicles
- Move is seen as a victory for automakers who pushed for change
Photographer: Alex Kraus/Bloomberg
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The Biden administration will allow more crossover SUVs to qualify for the newly-revamped electric vehicle tax credit following lobbying by automakers such as General Motors Co. and Stellantis NV.
The change announced Friday by the Treasury Department effectively expands the number of buyers who can take advantage of a lucrative $7,500 consumer tax credit by broadening the definition of how a sport-utility vehicle is defined. The tweak matters because under Democrats’ Inflation Reduction Act, SUVs costing up to $80,000 can receive the tax credits, while passenger-car buyers get nothing if the vehicle costs more than $55,000.