The U.S. Treasury said Today that Volkswagen, BMW, Nissan(NSANF), Rivian, Hyundai and Volvo Cars electric vehicles will lose access to a $7,500 tax credit under new rules for battery sourcing.
The Treasury said the new requirements effective on Tuesday will also cut by half credits for the Tesla Inc Model 3 Standard Range Rear Wheel Drive to $3,750 but that other Tesla models will retain the full $7,500 credit.
Vehicles losing credits on Tuesday are the BMW 330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf, Rivian R1S and R1T, Volkswagen ID.4 as well as the plug-in hybrid electric Audi Q5 TFSI e Quattro and plug-in hybrid electric (PHEV) Volvo S60. The Swedish carmaker is 82%-owned by China'sZhejiang Geely Holding Group.
The IRA requires that
1) 50% of the value of battery components be produced or assembled in North America to qualify for $3,750,
2) 40% of the value of critical minerals be sourced from the United States or a free trade partner for a $3,750 credit.
3) required vehicles to be assembled in North America to qualify for any tax credits