Electric vehicles(EVs) made by Hyundai Motor and Kia Motors were not included on a new list of cars that qualify for a tax credit under the Inflation Reduction Act(IRA) released by the U.S. Treasury Department on Monday.
Under the act signed by U.S. President Joe Biden last August, consumers can get up to 75-hundred dollars back on eligible cars through two separate tax credits, which only 16 vehicles qualify for in 2023.
To receive a three-thousand-750-dollar credit, half of the battery components must be produced or manufactured in North America, while EVs using batteries with minerals from North America or a country with a free trade agreement with the U.S., or were recycled in North America qualify for another three-thousand-750 credit.
Previously, automakers could qualify for the tax credit if their EVs were assembled in North America, but this year, new battery sourcing requirements significantly reduced the number of eligible vehicles.
With the South Korean automakers primarily manufacturing cars at home, they did not qualify for the credit.
The list was dominated by U.S. EVs, including the Tesla Model 3 Performance, the Chevrolet Bolt and the Ford F-150 Lightning.