All new Tesla Model 3 vehicles will now qualify for the full $7,500 federal EV tax credit, according to a change in Tesla’s website.
The EV tax credits were mandated by Congress last August as part of the Inflation Reduction Act, with the goal of ending U.S. reliance on China for batteries. The full $7,500 tax credit is broken into two parts. EVs can qualify for half, or $3,750, if 50% of the value of battery components were produced or assembled in North America; the other half requires 40% of the value of critical materials be sourced from the U.S. or another free trade agreement country.
When the tax credits kicked in on January 1, the Treasury Dept. held off on publishing the battery sourcing guidance in order to give EV-makers time to meet the requirements. On April 18, the department began enforcing the critical material sourcing requirement, which led to many vehicle mo...
