Wednesday, February 1, 2023
News Automakers Such as Kia and Porsche Warn that Buyers will not be...

Automakers Such as Kia and Porsche Warn that Buyers will not be Eligible for EV Tax Credit

Left-out automakers believe the new legislation will have a huge impact on the business and their customers


  • The new bill makes any EVs assembled outside North America ineligible for tax credits.

  • Customers with an existing order will get the credit.


The $430 billion climate, health, and tax legislation will have a profound impact on both the auto industry and its customers. The new bill will effectively render nearly ¾ of all PHEVs and EVs sold in the US ineligible for the federal tax credits.

Kia EV6 | Photo: Kia

The good news is if you have a binding contract with your local dealer for a new Audi, Porsche, or Kia EV, for example, then you will still receive the generous up-to $7,500 tax break. The bad news is if you were planning on placing an order for a new Audi e-tron or Kia EV6 in the near future, it’s too late. The situation is identical for Porsche buyers.

“With respect to customers who placed vehicles on order and are still awaiting delivery, their credit eligibility depends on the individual sales agreement, which is a matter between them and their independently owned and operated Porsche dealership,” a Porsche Cars North America spokesperson said as reported by Automotive News Europe.

In a nutshell, the bill renders any electrified vehicle that can be plugged in, a PHEV or a full EV, built outside of North America (not Canada, Mexico, and the US) completely ineligible for the credit. And it gets worse.

Come January 1st, 2023, all other eligibility criteria will go into effect. Families or individuals that earn more than $300,000 annually, EVs priced over a certain amount, and EVs that fail to meet critical mineral sourcing rules will forgo the incentives. The Alliance for Automotive Innovation believes that no EVs will “qualify for the full credit when additional sourcing requirements go into effect,”

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Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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