NEW YORK -- Ford Motor Co. and Chrysler-parent Stellantis said on Wednesday that most of their electric and plug-in electric hybrid models will see tax credits halved to $3,750 on April 18 after new U.S. Treasury rules take effect.
The rules, which were unveiled Friday, were mandated by Congress in August as part of a $430 billion climate bill. China dominates the global supply chains of products like EV batteries and solar panels and the rules are aimed at moving U.S. battery production and supply chains away from China.
Out of six Ford vehicles, just the F-150 Lightning pickup truck and Lincoln Aviator Grand Touring will still be eligible for a $7,500 credit. The other models currently getting credits - Ford Mustang Mach-E, Ford E-Transit, Ford Escape plug-in hybrid and Lincoln Corsair Grand Touring - will see credits drop to $3,750.
Stellantis said of its three plug-in hybrid electric models, the Chrysler Pacifica plug-in electric hybrid will qualify for $7,500 tax credits after April 18, while the Jeep Grand Cherokee 4xe and Jeep Wrangler 4xe qualify for just $3,750.
"We will make sure our products are able to use those subsidies," Stellantis CEO Carlos Tavares told reporters on the sidelines of the New York Auto Show adding the credits are a "major driver for the industry because it impacts the affordability."
The stricter EV battery sourcing U.S. Treasury guidance issued on Friday triggers new requirements for critical minerals and battery components.