Hyperdrive

Electric Car Models Eligible for $7,500 Tax Credit Cut to 13

  • New list excludes vehicles that use certain Chinese-made parts
  • Treasury in contact with automakers to determine eligibility

The Tesla Inc. Model Y electric vehicle.

Photographer: Samsul Said/Bloomberg
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The number of electric vehicle models eligible for a consumer tax credit of as much as $7,500 fell sharply as new rules from the Biden administration kicked in on Jan. 1.

Narrower criteria reduced the number of qualifying models to 13 from about two dozen, according to federal data from fueleconomy.gov. The new rules exclude from the tax credit vehicles that use battery components made by Chinese manufacturers.