Tesla Model Y gains full access to $7,500 EV tax credit with new $80,000 price limit
Tesla Model Y, which is undoubtedly the most important EV this year, has gained full access to the $7,500 federal tax credit with a new $80,000 price limit.
With the new year, the US Treasury released the full list of electric vehicles eligible for the new $7,500 tax credit.
At the time, we noted that there were some inconsistencies on the eligibility for the SUVs. The type of vehicle is significant, since it determines a price limit to be eligible for the tax credit.
SUVs and pickup trucks have a higher MSRP limit of $80,000 instead of $55,000 for all other vehicles.
We noted that the Tesla Model Y only qualified with a seven-seat configuration and other SUVs, like the Ford Mustang Mach-E, also weren’t considered SUVs, according to the IRS list.
That’s despite the VW ID.4, which has about the same size as the Model Y and Mach-E, being considered an SUV and getting access to the tax credit for a price of up to $80,000.
It appears that the IRS defines an SUV only by the vehicle’s GVWR or Gross Vehicle Weight Rating, which appears to need to be over 6,000 lbs to be considered an SUV. There might also be some other criteria that the IRS hasn’t shared because, again, there are some inconsistencies in the list if it’s just based on weight.
Many EV enthusiasts are seeing this as a major mistake since it goes against the purpose of the program, which is to encourage sales of more efficient vehicles. Vehicles with lighter weights are more efficient. There are several SUVs that have less cargo space than the Tesla Model Y and Ford Mustang Mach-E that are considered SUVs in the program, like the BMW X5 plug-in and Jeep Wrangler plug-in.
It seems to be a major faux pas by the IRS, especially when it comes to the Model Y, which is going to be the most crucial electric vehicle this year as it is expected to have a global production capacity of over 1 million units.
Today, the IRS updated its list of eligible EVs and fixed its mistake by making all versions of the Model Y eligible up to $80,000 MSRP:
| Model Year | Vehicle Description | Applicable MSRP Limit |
|---|---|---|
| 2022, 2023 | Tesla Model 3 Rear Wheel Drive | $55,000 |
| 2022, 2023 | Tesla Model 3 Long Range | $55,000 |
| 2022, 2023 | Tesla Model 3 Performance | $55,000 |
| 2022, 2023 | Tesla Model Y All-Wheel Drive | $80,000 |
| 2022, 2023 | Tesla Model Y Long Range | $80,000 |
| 2022, 2023 | Tesla Model Y Performance | $80,000 |
This should significantly increase access to the Model Y for people who are eligible to the tax credit in the US, meaning single fillers with an income of $150,000 or lower and dual fillers with an income of $300,000 or lower.
The Ford Mustang Mach-E has also gained full eligibility up to $80,000:
| Model Year | Vehicle Description | Applicable MSRP Limit |
|---|---|---|
| 2022, 2023 | Ford Escape Plug-In Hybrid | $80,000 |
| 2022, 2023 | Ford E-Transit | $80,000 |
| 2022, 2023 | Ford F-150 Lightning | $80,000 |
| 2022, 2023 | Ford Mustang Mach-E | $80,000 |
| 2022, 2023 | Lincoln Aviator Grand Touring | $80,000 |
| 2022, 2023 | Lincoln Corsair Grand Touring | $80,000 |
Again, these eligibilities for the full $7,500 credits are good until March when we are expecting new guidelines about the battery requirements, which should affect eligibility.
But for now, it’s good news all around. The IRS is clearly trying to do the right thing.
FTC: We use income earning auto affiliate links. More.
The US Department of Energy (DOE) has released an encouraging new report revealing that 90% of wind turbine materials are already recyclable using existing infrastructure, but tackling the remaining 10% needs innovation.
That’s why the Biden administration’s Bipartisan Infrastructure Law has allocated over $20 million to develop technologies that address these challenges.
Why this matters
The wind energy industry is growing rapidly, but questions about what happens to turbines at the end of their life are critical. Recyclable wind turbines means not only less waste but also a more affordable and sustainable energy future.
According to Jeff Marootian, principal deputy assistant secretary for the Office of Energy Efficiency and Renewable Energy, “The US already has the ability to recycle most wind turbine materials, so achieving a fully sustainable domestic wind energy industry is well within reach.”
The report, titled, “Recycling Wind Energy Systems in the United States Part 1: Providing a Baseline for America’s Wind Energy Recycling Infrastructure for Wind Turbines and Systems,” identifies short-, medium-, and long-term research, development, and demonstration priorities along the life cycle of wind turbines. Developed by researchers at the National Renewable Energy Laboratory, with help from Oak Ridge and Sandia National Laboratories, the findings aim to guide future investments and technological innovations.
What’s easily recyclable and what’s not
The bulk of a wind turbine – towers, foundations, and steel-based drivetrain components – is relatively easy to recycle. However, components like blades, generators, and nacelle covers are tougher to process.
Blades, for instance, are often made from hard-to-recycle materials like thermoset resins, but switching to recyclable thermoplastics could be a game changer. Innovations like chemical dissolution and pyrolysis could make blade recycling more viable in the near future.
Critical materials like nickel, cobalt, and zinc used in generators and power electronics are particularly important to recover.
Key strategies for a circular economy
To make the wind energy sector fully sustainable, the DOE report emphasizes the adoption of measures such as:
- Better decommissioning practices – Improving how turbine materials are collected and sorted at the end of their life cycle.
- Strategic recycling sites – Locating recycling facilities closer to where turbines are decommissioned to reduce costs and emissions.
- Advanced material substitution – Using recyclable and affordable materials in manufacturing.
- Optimized material recovery – Developing methods to make recovered materials usable in second-life applications.
Looking ahead
The DOE’s research also underscores the importance of regional factors, such as the availability of skilled workers and transportation logistics, in building a cost-effective recycling infrastructure. As the US continues to expand its wind energy capacity, these findings provide a roadmap for minimizing waste and maximizing sustainability.
More information about the $20 million in funding available through the Wind Turbine Technology Recycling Funding Opportunity can be found here. Submission deadline is February 11.
Read more: The California grid ran on 100% renewables with no blackouts or cost rises for a record 98 days
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links. More.
Mazda is finally stepping up with plans to build its first dedicated EV. The upcoming Mazda EV will be made in Japan and based on a new in-house platform. Here’s what we know about it so far.
The first dedicated Mazda EV is coming soon
Although Mazda isn’t the first brand that comes to mind when you think of electric vehicles, the Japanese automaker is finally taking a step in the right direction.
Mazda revealed on Monday that it plans to build a new module pack plant in Japan for cylindrical lithium-ion battery cells.
The new plant will use Panasonic Energy’s battery cells to produce modules and EV battery packs. Mazda plans to have up to 10 GWh of annual capacity at the facility. The battery packs will power Mazda’s first dedicated EV, which will also be built in Japan using a new electric vehicle platform.
Mazda said it’s “steadily preparing for electrification technologies” under its 2030 Management Plan. The strategy calls for a three-phase approach through 2030.
The first phase calls for using its existing technology. In the second stage, Mazda will introduce a new hybrid system and EV-dedicated vehicles in China.
The third and final phase calls for “the full-fledged launch” of EVs and battery production. By 2030, Mazda expects EVs to account for 25% to 40% of global sales.
Mazda launched the EZ-6, an electric sedan, in China last October. It starts at 139,800 yuan, or around $19,200, and is made by its Chinese joint venture, Changan Mazda.
Based on Changan’s hybrid platform, the electric sedan is offered in EV and extended-range (EREV) options. The all-electric model gets up to 600 km (372 miles) CLTC range with fast charging (30% to 80%) in 15 minutes.
At 4,921 mm long, 1,890 mm wide, and 1,485 mm tall with a wheelbase of 2,895 mm, Mazda’s EZ-6 is about the size of a Tesla Model 3 (4,720 mm long, 1,922 mm wide, and 1,441 mm tall with a 2,875 mm wheelbase).
Inside, the electric sedan features a modern setup with a 14.6″ infotainment, a 10.1″ driver display screen, and a 50″ AR head-up display. It also includes zero-gravity reclining seats and smart features like voice control.
The EZ-6 is already off to a hot sales start, with 2,445 models sold in November. According to Changan Mazda, the new EV was one of the top three mid-size new energy vehicle (NEV) sedans of joint ventures sold in China in its first month listed.
Will Mazda’s first dedicated EV look like the EZ-6? We will find out with Mazda aiming to launch the first EV models on its new in-house platform in 2027. Stay tuned for more.
FTC: We use income earning auto affiliate links. More.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports9 months agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway