The Biden administration said about 20 models will still qualify for electric vehicle tax credits; of up to $7,500 through the end of 2022 under legislation signed by President Joe Biden.
The law signed immediately ends credits for about 70% of the 72 models that were previously eligible, said the Alliance for Automotive Innovation, an industry trade group.
To qualify, EVs must now be assembled in North America.
New restrictions on battery and mineral sourcing and price and income caps take effect on Jan. 1 that will make all or nearly all EVs ineligible, the auto group said. The new sourcing rules will rise annually.
The automaker group said it will work with the administration “as they issue critical guidance and new regulations; so the EV tax credit is as available and beneficial to consumers as possible.”