More EVs to qualify for tax credit following Treasury changes

More electric vehicles will qualify for a $7,500 tax credit under changes revealed Friday by the federal government, a move that follows pressure from auto industry lobbyists to better define the eligibility requirements. 

The Treasury Department said Friday it was modifying how it classifies vehicles subject to certain price caps set under the Inflation Reduction Act, which made revisions to the subsidy rules. The move effectively expands the population of eligible vehicles. 

As a result, more electric crossovers and SUVs previously not covered by the credit will qualify, the department said.

The changes marked a victory for the auto industry, which had been pressing the government to adjust the eligibility requirements that had initially exempted some models, including versions of the Tesla increase Model Y and Cadillac Lyriq.