Cheddar News' Senior Reporter Chloe Aiello breaks down who will qualify for federal electric vehicle tax credits following recent changes. 

Cheddar News' Senior Reporter Chloe Aiello breaks down who will qualify for federal electric vehicle tax credits following recent changes.&nbsp;

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Cheddar Explains: Who Qualifies for EV Tax Credits? 

New rules set to go into effect in April. Mean that fewer new electric vehicle purchases will qualify for E V subsidies. This as it becomes more expensive than ever to buy a car in the United States. Here with Morris, senior reporter Chloe, a Chloe, what are these rules and which cars will and will not qualify? This is a huge turnaround from the last few years. Hey, Hannah, it absolutely is. So the Biden administration released a new set of rules on Friday that require E V manufacturers to jump through even more hoops to qualify for federal subsidies. The new requirements for cars purchased on or after April 18th concern, batteries and critical minerals used to produce those batteries and experts say they will further limit the types of electric vehicles eligible, eligible for those credits. This comes on the back of the passage of the inflation reduction act in August which sought among other things to reduce reliance on China and combat climate change by encouraging renewable energy and the adoption of electric vehicles. The IRA eliminated caps on sub subsidies per manufacturer but implemented other new restrictions like limiting the price of eligible vehicles and ensuring buyers meet certain income restrictions. So for example, Americans seeking subsidies can only make up to $300,000 annually for couples filing jointly $225,000 for heads of household or $150,000 for individuals. In terms of pricing, vehicles can only cost up to $80,000 for trucks, vans or suvs or $55,000 for other vehicles. The bill also requires eligible vehicles to be assembled in North America which Reuters reported eliminates about 70% of E V S currently on the market. Now, this new update from Friday means that cars must now also meet more stringent requirements for batteries and the minerals used to make them. So specifically in order to qualify for a $33,750 subsidy, half of the value of battery components must be produced or assembled in North America. 40% of the mineral value must be sourced from the US or a free trade partner for an additional $3,750 credit if a car qualifies in both areas that it's eligible for the full $7500 credit, Hanna. So what does this mean for buyers in the current economic environment? Well, we know that supply disruptions low inventory, new technology, higher interest rates and other things mean that it's more expensive than ever to buy a car. So average manufacturer suggested retail price is now closer to $50,000. There in 2017 were 36 models below $25,000. Today, only about 10 models, this was higher interest rates mean that, that certain shoppers have been shut out. And since these are already more expensive than internal combustion vehicles, a cut in subsidies could make e the ownership and even car ownership less viable Hanna, we already know those cars like you mentioned are a bit more expensive. All right, our new senior reporter Chloe. A thank you for the information.