New federal rules make fewer EVs eligible for tax credit

WASHINGTON (NEXSTAR) — Drivers considering an electric car may need to put the pedal to the metal to get to the dealership. The Biden administration just announced new rules likely to slash the number of electric vehicles eligible for the full $7,500 federal tax credit.

"The list (of eligible cars) … may be shorter but it's going to be worth it,” said Bharat Ramamurti, deputy director of the National Economic Council.

He said the new rules, which mandate eligible cars include more American-made parts, are part of a long-term strategy.

"Over time, we're going to develop this industry domestically, increase jobs and at the end of the day, there will be more cars eligible for that tax credit,” said Ramamurti.

The administration insists it will only be a matter of years before U.S. automakers can bridge the supply chain gap. It claims the delay will not hinder the U.S.'s ability to drastically slash carbon emissions by 2050.

"I think the targets are very achievable,” said Albert Gore, son of the former vice president and leader of the Zero-Emission Transportation Association. He said he's confident the policy will work.

"There will be a huge number of eligible cars coming onto the market in the near future," said Gore.

West Virginia Democratic Sen. Joe Manchin pushed for the America-first provisions last year. On CNN's State of the Union Sunday, he argued they are necessary to reduce America’s reliance on country's like China.

"The purpose of the bill was energy security,” said Manchin.

U.S. automakers have until April 18 to determine which cars fully meet the new federal standards.