U.S. regulators have announced eligibility requirements for new all electric, plug-in hybrid, and fuel cell electric vehicles with regard to a new $7,500 federal income tax credit available as part of the Inflation Reduction Act (IRA) signed into law last August. Critically, both the Chevy Bolt EV and Chevy Bolt EUV qualify for the full U.S. EV tax credit. Meanwhile, models from several other brands will not be eligible for the new tax credit.
In order to qualify for the full $7,500 EV tax credit, vehicles are required to have a minimum battery capacity of at least 7 kWh, a gross vehicle weight rating under 14,000 pounds, and the vehicle must be produced by a qualified manufacturer. The vehicle must also be purchased new, it must undergo final assembly in North America, and it must meet critical mineral and battery component requirements with regard to sourcing. Finally, the vehicle MSRP cannot exceed $80,000 for vans, SUVs, and pickup trucks, and $55,000 for other vehicles.
The Chevy Bolt EV and Chevy Bolt EUV are not the only GM vehicles to qualify. Per a report from Reuters, General Motors previously indicated that it expects several of its new all-electric vehicles to qualify for the full $7,500 tax credit, including the Cadillac Lyric, the Chevy Equinox EV, and the Chevy Blazer EV, all of which the treasury has confirmed will indeed qualify.
The new EV tax credit coincides with President Biden’s goal of making half of all new car sales electrified vehicles 2030. Last week, the Environmental Protection Agency (EPA) released its most strict emissions rules to date, forecasting that 60 percent of new vehicle sales would be EVs by 2030.
The new requirements also mean that several other manufacturers will lose access to the EV tax credit, including BMW, Nissan, Volkswagen, Volvo, and Hyundai. In addition, models from other manufacturers, including those from GM crosstown rivals Ford and Stellantis, will have access to only half of the $7,500 tax credit ($3,750).