WASHINGTON — The U.S. Treasury Department on Friday said it has modified how it is classifying vehicles that are subject to price caps in the Inflation Reduction Act's tax credit for consumers buying new electric vehicles.
The department said it will now use the consumer-facing EPA Fuel Economy Label standard to determine whether a vehicle is a sedan, SUV, pickup or van instead of using EPA corporate average fuel economy, or CAFE, standards.
"This change will allow crossover vehicles that share similar features to be treated consistently," Treasury said in a news release Friday. "It will also align vehicle classifications under the clean vehicle credit with the classification displayed on the vehicle label and on the consumer-facing website FuelEconomy.gov."