One of the conditions of the current tax credit system is that once an EV automaker surpasses 200,000 vehicle sales, the incentive falls away. This is what happened to Tesla at the end of 2019. Under the new Clean Energy for America bill, this 200,000 cap would be dropped, as reported back in February, but the credit would gradually fall away once half of all new vehicles sold in the US are EVs.
Other changes would see the tax credit limited to vehicles with a price tag of under $80,000 – there is no price limit currently. But which automakers and cars would qualify for the full $12,500?
Along with the existing $7,500, another $2,500 would be added for vehicles assembled in North America. That would immediately rule out the Ford Mustang Mach-E which is assembled in Mexico.