Starting tomorrow, just six electric cars will still qualify for a $7,500 federal tax credit

The IRS released a list of electric vehicles that still qualify for a full $7,500 federal tax credit after strict new guidelines officially go into effect on April 18. The list is very short, as only six electric cars now qualify under the new conditions. The updated rules apply to EV batteries and exclude China as an approved trading partner, so we knew the vehicle list would shrink, as most electric vehicles use batteries manufactured in China or by Chinese companies.

If you want to get the full tax credit, choose from the Cadillac Lyriq, Chevy Bolt, Chevy Bolt EUV, some Tesla Model 3 versions, some Tesla Model Y versions, and the Ford F-1[ads1]50 Lightning. Many electric cars will lose their glory in the future, such as the Nissan Leaf and Volkswagen ID.4. So check the entire list on your next car purchase. $7,500 is nothing to sneeze at.

Electric vehicles that are shunted out of the exclusive full tax credit club can still qualify for a half credit of $3,750, as long as they meet certain requirements. Three PHEVs also qualify for a half credit and three more qualify for a full tax credit, including models manufactured by Ford, Lincoln, Chrysler and Jeep. These credits are not about excluding hybrid technology and are about making sure the components come in the right way.

Here’s how it breaks down. Battery components that are 50 percent made or assembled in the United States qualify for the first half of $3,750, and if the company sources at least 40 percent of critical minerals from the United States or free trade partners, the second $3,750 starts. If a company meets one or the other standard, the vehicle gets half a credit.

While the list winnowing down to just six cars makes for a good headline, it should be strengthened as automakers make changes to meet the rules. New EVs that meet the component sourcing standards will be added to the list, and other vehicles will be added again as manufacturers open new factories in the United States and other approved countries. New trade agreements may also affect the list of approved vehicles as time progresses. However, these rules become stricter over time. Batteries must be completely made in North America by 2029 to continue to stay on the good side of the IRS and get the full $7,500 credit.