Everything you need to know about the IRS’s new EV tax credit guidance
The US Treasury Department today announced its expected EV tax credit guidance on the battery component and critical mineral sourcing requirements of the Inflation Reduction Act, changing the availability of EV tax credits in the US, with the net effect of reducing tax credit amounts for many vehicles purchased on April 18 or later.
The Inflation Reduction Act includes a provision that limits the $7,500 EV tax credit to vehicles that are assembled in North America. Beyond that, a certain percentage of each car’s battery components need to be built in North America, and critical minerals need to be sourced from the US or a US free trade country, with these percentages increasing every year. Each of these two requirements make up half of the credit, so if a car qualifies for one but not the other, it’s eligible for $3,750 worth of federal tax credits.
The NA-assembled provision went into effect immediately in August when the bill was signed, but the battery sourcing provisions were left up to the Treasury to decide. It was originally supposed to announce those specifics by December, but pushed back the deadline until today.
This temporarily qualified some vehicles, like the Chevy Bolt (which will now remain a screaming deal through April 17), and some Tesla models for the full $7,500 credit. Both GM and Tesla have previously stated that they don’t expect to qualify for the full purchase credit when the new battery rules go into effect.
Senior administration officials advised that while fewer cars will qualify for the full credit in the short term, the law will work to strengthen the US industrial base and eventually there will be more cars that qualify as production gets on-shored.
In addition to the NA-assembly and battery provisions, cars over $55K and SUVs/trucks over $80K MSRP do not qualify. Also, taxpayers cannot claim the credit if their income is over $150K/$225K/$300K for single/head-of-household/married filing jointly.
The domestic assembly provisions caused some rankling in the international community when the bill was passed, with some foreign automakers and governments decrying it as a protectionist move. Since then, to help smooth over these complaints, the US signed a free trade deal for battery minerals with Japan earlier this week and is working on a similar agreement with Europe.
The Treasury has also suggested that it is still possible for foreign-assembled cars to still qualify for commercial tax credits if they’re leased, an interpretation that was pushed for by Hyundai and Kia (but opposed by the famously anti-EV Toyota). In this case, a dealership would file for the commercial credit and presumably could pass it on to the consumer in the form of lower lease payments.
Senior Treasury and White House officials said today that due to the domestic production provisions of the IRA, $45 billion worth of new electric car manufacturing investments have been announced since the act was signed. The administration said this accounts for tens of thousands of jobs across 24 states, along with several other commitments related to the law’s EV-adoption goals (more public charging, more electric transit, and so on).
Details of the new battery sourcing requirements
Thankfully, the new battery sourcing guidance today held few surprises. It is, however, going into effect a little later than expected: April 17, rather than the end of March (today).
So buyers will have a couple more weeks to purchase an EV before tax credit amounts are reduced, as the new guidance will be applicable to vehicles placed into service on April 18 or later. These vehicles may lose access to half or all of the tax credit, depending on where their battery components and critical minerals are sourced.
To meet requirements set up in the IRA, manufacturers must ensure that battery critical minerals are “extracted or processed in the US or any country with which the US has a free trade agreement,” or recycled in North America. They must also ensure that battery components are “manufactured or assembled in North America.”
Each of these legs accounts for half of the total $7,500 credit.
Each leg also has an “applicable percentage” based on the year the vehicle is “placed into service,” which can be seen in the flowchart below. The process of measuring whether a car meets these requirements is relatively straightforward, and involves identifying the value (rather than weight or volume) of each component or mineral used in the battery supply chain:
The Treasury seems like it intends to take a lenient view of what counts as a “free trade agreement” for the critical mineral provisions, and specifically noted that this week’s agreement with Japan counts. The list of countries it identified was: Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Korea, Mexico, Morocco, Nicaragua, Oman, Panama, Peru, Singapore, and Japan
There is one more consideration: After 2024, batteries must contain no components whatsoever that were manufactured or assembled by a “foreign entity of concern” (FEOC) and after 2025, no critical minerals can be extracted, processed, or recycled by a FEOC.
The law itself does not specify a full list of FEOCs, so it falls upon the Treasury to provide that before the end of the year, when the rule first takes effect. The Treasury could not tell us whether this list would focus on national or subnational entities.
Presumably, some significant percentage of those entities will be associated with China, given that the IRA specifically intends to reduce the overreliance on China for batteries, whether the list ends up including all of China itself or not. A senior administration official specifically noted that many minerals currently get extracted in Australia and processed in China. The administration hopes some of those minerals could instead be processed perhaps in Japan, under the US’s newly signed trade agreement focused on environmental standards and workers’ rights.
And there is still a chance to iron out any wrinkles left in today’s guidance, as today’s rule is merely a “proposed” rule, rather than a final one. The proposed rule is published in the federal register, and public comments will be taken through June 16. This also means that vehicles placed into service between April 18 and whenever the final rule goes into effect will use the proposed rule, whereas later vehicles will use the final rule, in whatever form that rule takes. Any changes are likely to be minor.
With the new tax credit guidance only released today, a full list of qualifying vehicles is not yet available. Manufacturers will have to certify that their cars meet these new sourcing requirements and submit that information before the proposed rule goes into effect on April 17. The government will publish a list of eligible vehicles and the amount of credit each vehicle receives on fueleconomy.gov on April 18, and we at Electrek will keep you updated when that list comes out.
Electrek’s Take
With today’s battery sourcing guidance, we’ve moved one step closer to the end of the long and complicated EV tax credit implementation saga. Most provisions of the Inflation Reduction Act are now somewhat clear, with the primary exception of the future point-of-sale tax credits, slated for 2024, which will allow buyers instant access to EV discounts instead of having to wait to file their taxes.
There will be a few more changes over time, as manufacturers move to onshore production, or as the US government possibly makes more deals with other countries as it did with Japan this week. These should gradually qualify more cars for tax credit access.
On the other hand, some cars might lose out over time due to increases in the “applicable percentage” as years tick by. We’ll keep you updated about any changes as we learn about them, but hopefully things will settle into a bit more of a steady state from here on out.
It would have been nicer if the journey was a little simpler, but given that the legislation had the goal of not only increasing electric car adoption but also increasing American manufacturing in a world where manufacturing is so globalized, it was always going to end up being a little complex.
And in the end, more cars will take advantage of the tax credit than before, when credits were capped at 200,000 per manufacturer, so it’s still an improvement, if an imperfect one.
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Finally! The Nissan LEAF has been reborn as a new 2026 crossover, and it has NACS! [Video]
![Finally! The Nissan LEAF has been reborn as a new 2026 crossover, and it has NACS! [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/06/New-Nissan-LEAF-hero.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
After years of development and months of teasers, Nissan has officially launched a reimagined version of the LEAF as a 2026 model year crossover, set to hit dealerships later this year. We will always love the original LEAF, but this new model is sharp and includes some well overdue upgrades, including a NACS port and Plug & Charge capabilities.
It’s been over fifteen years since the original Nissan LEAF debuted as one of the world’s first viable, mass-market EVs. For nearly a decade, the LEAF was the best-selling plug-in EV in the world, before Tesla took over.
While the original hatchback LEAF will go down in history as one of the earliest successful BEV models, its market status in recent years has been repetitive, laughably archaic (CHAdeMO), albeit nostalgic. The last five or six model years of the Nissan LEAF have essentially been the same car, and the public has been petitioning for something new.
How could an automaker so ahead of the BEV curve in 2009 fall so far behind over the course of a decade? Nissan asked itself that same question and has since bounced back with the ARIYA, which has been in production since 2022, but what about a new LEAF?
In the summer of 2023, Nissan confirmed a next-gen LEAF was in the works, set to arrive in 2024. If you look at your calendar, you’ll notice that it didn’t happen, but we’re closer than ever! Last year, Nissan began sunsetting LEAF production to make way for the new version.
Since January 2025, we have been following several camouflaged images of the reimagined LEAF in the wild before Nissan gave us a first official look in March. Earlier this month, Nissan shared even more details, including a timeline for the new BEV’s global debut.
Today, the third-generation Nissan LEAF has officially launched as a 2026 model, and it’s about as nice of an upgrade as we could have asked for.
Nissan’s new LEAF is set to hit dealers this fall
This morning, Nissan shared all the specifications for the four planned trims of the new 2026 LEAF (except pricing, sorry). There’s much to unpack here, so let’s dig right in.
For starters, the first thing you’ll notice, which we’ve already noted in the past, is that the 2026 LEAF has evolved from a compact hatchback to a (slightly) larger, family-friendly crossover SUV.
The new LEAF is marginally shorter in length than the second-generation model (173.4 inches vs. 176.4 inches), but it is about an inch wider and a similar height to its predecessor. So, arriving as a radically looking version of the LEAF without the hatchback, it will fill a similar footprint to the older models.
While the 2026 Nissan LEAF may be similar in size, most of the rest of the BEV has been significantly overhauled in the best ways. For example, the battery packs and electric motors have been bolstered to provide significantly better horsepower, charge rates, and range.
Here’s a quick breakdown of the standard configurations of the four initial LEAF trims in the new generation:
| Nissan LEAF Trim | Motor | Battery | Power | Onboard Charger |
| S | 130 kW | 52 kWh | 174 hp, 254 lb-ft torque | 7.2 kW |
| S+ SV, PLATINUM+ | 160 kW | 75 kWh | 214 hp, 261 lb-ft torque | 7.2 kW |
Nissan also shared initial range estimates for the new LEAF trims, except for the base-level S version. Note that the two versions of the 2025 LEAF offered ranges of 149 and 212 miles, respectively:
| 2026 Nissan LEAF Trim | Est. Range |
| S | TBD |
| S+ | 303 miles |
| SV+ | 288 miles |
| PLATINUM+ | 259 miles |
Even at its lowest range, the 2026 LEAF can go significantly farther than the previous generation. Better yet, it will be A LOT easier when future owners need to recharge. Yes, Nissan has finally abandoned the long-defunct CHAdeMO port and has replaced it with not one, but two more modern options.
A J1772 port is present on the driver’s side fender for Level 1 and 2 charging, while a North American Charging Standard (NACS) is on the passenger’s side fender, giving drivers access to Tesla’s massive Supercharger network. Per Nissan, the new LEAF models can recharge from 10 to 80% in 35 minutes on a DCFC. 240V charge times remain “TBD.”
The new models also have “Plug & Charge” capabilities.
Moving inward, the 2026 LEAF looks like an entirely new vehicle designed for the modern driver. The two higher-end trims come with dual 14.3-inch dash displays with Google built-in. The two lower trims have dual 12.3 inch displays and all support Apple CarPlay and Android Auto.
Nissan also shared that the cabin has an upgradable dimming panoramic roof—a first for its segment, according to the automaker. The crossover’s cargo area is 55.5 cubic feet behind the second-row seats when they’re folded (20 cubic feet when they’re upright).
Additionally, the new LEAF’s PLATINUM+ trim has 64-color ambient lighting that can be customized to set any mood in the cabin.
One key element we are missing from Nissan is the pricing of these new LEAF models. Those details should come sometime toward the end of summer, as the automaker has said the 2026 LEAF models should hit Nissan dealerships this fall.
While we await more details, be sure to check out Nissan’s b-roll footage of the new 2026 LEAF inside and out below:
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Suzuki revealed prices for its first EV, a twin to the upcoming Toyota Urban Cruiser. The e Vitarra will go on sale next month in an increasingly crowded market. Can it keep up with the Kia EV3 and other popular electric SUVs?
Suzuki announces prices for its first EV, built with Toyota
Ahead of sales, which are set to begin next month, Suzuki announced e Vitara prices this week, its first EV that will also serve as a twin to Toyota’s upcoming electric SUV.
The e Vitara will start at £29,999 ($40,500) with prices ranging up to £37,799 ($51,000) for the flagship “Ultra ALLGRIP-e 4WD” trim.
Sukuki’s first EV is available with two battery options: 49 kWh or 61 kWh, providing WLTP range of 346 km (215 miles) and 428 km (266 miles), respectively.
Buyers can choose from “Motion” or “Ultra” grades, with single (2WD) and dual-motor (4WD) options. Suzuki developed the new four-wheel drive (4WD) ALLGRIP-e system specifically for the e Vitarra and is one of the few auto brands to offer an electric SUV with 4×4.
The e Vitara sits on a new dedicated “HEARTECT-e” EV platform, which houses the eAxle and lithium iron phosphate (LFP) batteries.
As part of a deepening alliance, Toyota will use Suzuki’s EV powertrain for its upcoming electric SUV, the Urban Cruiser (shown below in white). Toyota will launch the Urban Cruiser in the next few months, which will essentially be a rebadged e-Vitara.
The e Vitara measures 4,275 mm in length, 1,800 mm in width, and 1,635 mm in height, with a wheelbase of 2,700 mm. That’s about the size of Kia’s new EV3 at 4,300 mm in length, 1,850 mm in width, and 1,560 mm in height, with a wheelbase of 2,680 mm.
In the first quarter, the Kia EV3 was the best-selling retail EV and the fourth best-selling electric vehicle (including commercial EVs) in the UK.
The EV3 starts at £33,005 ($42,500) in the UK. IT’s also available with two battery options: 58.3 kWh or 81.48 kWh. The former is good for a WLTP range of 430 km (270 miles), while the latter provides a range of 599 km (375 miles), respectively
| Suzuki e Vitara trim | OTR Pricing |
| 49kWh Motion 2WD | £29,999 |
| 61kWh Motion 2WD | £32,999 |
| 61kWh Ultra 2WD | £35,799 |
| 61kWh Motion ALLGRIP-e 4WD | £34,999 |
| 61kWh Ultra ALLGRIP-e 4WD | £37,799 |
Suzuki is offering a few discounts for early buyers, including 0% PCP for two years with a 20% deposit. With a deposit of £8,436 ($11,500), monthly payments for the 61 kWh Motion 2WD model would be £379 ($513).
If you order before September 30, Suzuki will give you a free Ohme home charger, plus 10,000 miles in home charging credit.
Can Suzuki’s new e Vitara keep pace with the Kia EV3 and other popular electric SUVs like the Hyundai Inster? Let us know your thoughts in the comments below.
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Tesla (TSLA) is sitting on so much inventory it has to take over parking lots all over the US
Tesla (TSLA) is currently sitting on so much inventory in the US that it has to take over parking lots outside of its exciting delivery centers to act as “overflow lots.”
Over the last few weeks, there have been increased reports of Tesla vehicles spotted in parking lots not directly linked to Tesla retail, delivery, or service locations.
In Chesterfield near St. Louis, Missouri, Tesla has rented the parking lot of a partly demolished mall where it is parking hundreds of unsold cars, which its delivery location three miles away can’t hold.
This is what is known as an “overflow” lot to handle rising inventory levels. Tesla has been using a lot more of these this year amid demand problems.
There was another Tesla overflow lot spotted in Farmington Hills, Michigan earlier this month that has been controversial. The lot was reportedly not coded for vehicle storage, and the city notified Tesla:
In this case, many vehicles were Cybertrucks, which Tesla is having a tough time selling. We previously reported that sales fell by half compared to last year despite bigger discounts, and Tesla had to throttle down production to avoid building even more inventory.
About 100 Cybertrucks were spotted in the Farmington Hills lot.
Similar Tesla overflow lots were also spotted in Nevada, Florida, and Ohio in recent months.
Tesla’s inventory in the United States can be difficult to track. Some sites track Tesla listings, but the automaker can sometimes post a single listing for multiple vehicles with the same configuration.
Nonetheless, the latest data points to Tesla inventory increasing over the last week, with a surge of Model 3 listings:
Tesla’s overall inventory is higher than it was at the same time last quarter.
Cybertruck inventory has decreased slightly as Tesla has reduced production, but the automaker is still holding over 3,000 unsold Cybertrucks.
Electrek’s Take
Tesla is now offering record-low lease prices and subsidized financing to move its vehicles in the US, and yet, it still has higher inventory this quarter than it did the last, with only two weeks left in the quarter.
This is a problem for Tesla because the US is its last market where things are not completely terrible.
Sales in Canada are now gone. Almost completely. Europe is down roughly 40% even with the new Model Y.
In China, Tesla is currently down approximately 3,000 units compared to Q1, despite having ramped up Model Y production, made all variants available, and offered 0% financing.
At this point, it looks like Tesla is going to deliver between 350,000 and 360,000 vehicles in Q2, despite the Wall Street analyst consensus still being at 410,000 vehicles.
That would be down a whopping 80,000 units compared to the same period last year, and this time, Tesla has no Model Y changeover to blame things on. All that amid surging EV sales globally.
Maybe Tesla shareholders start to wake up and realize that there’s a problem that needs fixing, but I wouldn’t bet on it.
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