"U.S. Car Brands Will Benefit Most From Electric Car Tax Breaks"

"Rules that take effect on Tuesday will limit the $7,500 credits to electric cars made domestically with minerals from the U.S. or trade allies."

"American brands like Tesla and General Motors will benefit most from rules that determine which electric vehicles qualify for tax credits starting on Tuesday. Foreign carmakers like Hyundai will be at a significant disadvantage because of restrictions aimed at cutting China out of the supply chain.

Only 10 vehicles will initially qualify for tax credits of $7,500, less than a quarter of the battery-powered cars on sale in the United States. But those 10 include many of the most popular models and accounted for two-thirds of electric vehicle sales before the new rules took effect.

Tesla’s Model 3 and Model Y, the best-selling electric vehicles in the United States, will qualify for the full $7,500 credit, with one exception, according to a list published by the Treasury Department on Monday. The least expensive version of the Model 3 will qualify for only half the credit because its battery is made in China.

G.M.’s Chevrolet Bolt, one of the cheapest electric vehicles on the market, will also qualify, as will sport utility vehicles and pickups that the company plans to begin selling this year."

Jack Ewing reports for the New York Times April 17, 2023.

Source: NYTimes, 04/19/2023