The latest update to the federal tax credit rules that involve EVs, allows more models to now classify as SUVs, raising their MSRP price limit from the $55,000 cap used for cars up to $80,000.
The Treasury Department had been classifying vehicles using the EPA’s CAFE standards, but it will now switch to a system based on the Fuel Economy Labeling standard. The Treasury Department said, “This change will allow crossover vehicles that share similar features to be treated consistently.”
Ford, GM, and Tesla all supported changing the former rules. GM told Car and Driver in a statement that tax credits are “a proven accelerator of electric vehicle adoption” and said the Treasury “aligning” with the CAFE standards “will provide the needed clarity to consumers and dealers, as well as regulators and manufacturers.”
via Car and Driver