As a result of new regulations governing how automakers must source the materials for their electric car batteries, several models from automakers like Jeep, Rivian, and Ford have lost their eligibility for the $7,500 federal EV tax credit instituted by
. Others, like Hyundai, have meanwhile gained eligibility. All told, more vehicles are eligible in 2025 than last year (27 total compared to 22 last year), but some popular models have lost their eligibility.
What Changed In 2025?
This year, the credit is split into two elements. Vehicles can qualify for half the $7,500 amount so long as the vehicle itself and the batteries are assembled in America. The full amount is reserved for vehicles that have battery materials sourced outside of a “foreign entity of concern,” which are effectively countries the U.S. government does not want automakers doing business. Think: China, Iran, Russia, and North Korea. 60-percent of battery materials must be extracted or processed in the Stateside, or by one of the U.S.’ free-trade partners. This figure rises to 80-percent by 2027.
There are also pricing requirements to hit: Sticker prices for trucks, SUVs, and vans can’t rise above $80,000, while other vehicles are subject to a more stringent $55,000 price cap. There are some arguments to be made this pushes automakers to produce larger, more materials-intensive EVs that will fall into the former category- not especially ideal when EVs are supposed to curb emissions. Regardless, qualifying vehicles for 2025 shifted significantly. Many more Genesis, Hyundai, and Kia models qualify, like the Ioniq 5, EV9, Genesis Electrified GV70, and the Kia EV6 and EV9.
Who Misses Out On Tax Credits In 2025?
Quite a few vehicles also lost access to the credit or saw their eligibility cut. The Volkswagen Group’s Audi Q5 and VW ID4 are both out, as are Ford’s Corsair and Escape PHEVs and Nissan’s Leaf. Rivian, notably, lost out on this year’s credits but has said it will regain eligibility soon
, while the R1S and R1T can still qualify so long as they are leased. Meanwhile, Jeep Wrangler 4xe and Grand Cherokee 4xe variants are given the credit on leases as well. The Cybertruck’s base model qualifies, as it just inches in under the $80,000 price cap for trucks.
TopSpeed’s Take
More EVs qualify this year than at any point since the Biden Administration’s introduction of the tax credit, but with Biden’s defeat in the 2025 presidential election, the future of this incentive is murky. The incoming Trump Admin. has already expressed interest in canceling the credit altogether, though the politicking of some automakers could mean the administration is willing to hear out alternatives.
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