The Treasury Department just fixed the EV tax credit’s Tesla Model Y problem
The US Treasury Department says it is modifying the electric vehicle tax credit to potentially allow more vehicles to qualify — for now.
In a press release, the department said that to determine whether a vehicle is a sedan, SUV, pickup truck, or van, it would use the Environmental Protection Agency’s Fuel Economy Labeling standard rather than the EPA’s corporate average fuel economy, or CAFE, standard.
In plain language, this could clear up some of the confusion around which vehicles qualify for the $7,500 tax credit, which was written into law last year as part of the Inflation Reduction Act (IRA).
“This change will...