- The Treasury Department has announced new guidelines that will make more electric vehicles (EVs) eligible for federal tax credits.
- The new rules regulate the price limits that apply to certain types of vehicles.
- Car companies have spoken out for a change.
Tesla (TSLA) and other electric vehicle (EV) makers received a boost after the Treasury Department expanded the type of EVs eligible for federal tax credits.
The ministry said it would change the way it determines which electric vehicles meet price caps to qualify. Under Inflation Reduction Act signed last year, cars, sedans and wagons could cost no more than $55,000, while SUVs, vans and pickups could be up to $80,000.
Under the new guidelines, vehicles such as the Tesla Model Y, General Motors (GM) Cadillac Lyriq and Ford (F) Mustang Mach-E would now measure up to a higher price standard. The department explained that the decision was designed to “make it easier for consumers to know which vehicles qualify” under the cap.
Auditing in industry
Car companies pushed for change. CEO of Tesla Elon Musk he called the standards “Bad!” in a tweet in January. He is reported to have raised the issue when he recently met with White House officials.
The ministry added that the decision applies to buyers who have purchased and put vehicles into service since January 1.