New year, new rules for EV tax credit for US car buyers

Thirteen EV models are now eligible for US tax rebates on electric vehicles. Yahoo Finance Senior Reporter Pras Subramanian reports on which EV models are eligible for the tax credit — the full amount going as high as $7,500 — and deep dives on the new rules for eligibility.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video transcript

JOSH LIPTON: Here's one question before we let you go, Pras. Next year, new rules for EV tax credits, limit options for buyers, I guess. What can you tell us about that?

PRAS SUBRAMANIAN: Yeah, so now with these new battery component requirements for the federal tax credits that are sort of mandating where they want to get these components from, only about 13 cars now, plug-in hybrids and EVs, qualify for partial or full tax credit. Among the plug-ins, we're seeing the good old Chrysler Pacifica minivan. That gets the full credit for a plug-in. You see cars like the Lincoln Corsair. And the Jeep Wranglers, Jeep Grand Cherokees, that are plug-ins, but also on the EV, pure EV, side a few Teslas like the Model 3 Performance, Model Y, and the Model X long-range. And then, also, the Bolt EV, the F-150 Lightning, and the Rivians that you mentioned, that's it for the EVs.

JULIE HYMAN: So what's not?

PRAS SUBRAMANIAN: You're losing the Nissan Leaf, Volkswagen ID.4, the cheapest version of the Model 3, and also the Ford Mustang Mach-E, which is actually a pretty big sell-- one of the top sellers of EVs in the country. So those are some big ones that are being gone. Those manufacturers say they're going to retool how they make the batteries and hopefully get those back into the regime of federal tax credits. So we'll see what happens later on. Right now, we have 13 cars.

JOSH LIPTON: Wow. All right, big trend to watch. Thank you, Pras. Appreciate it.