Electric vehicles like Tesla’s Model S and Chevrolet’s Bolt won’t be eligible for the $7,500 tax credit in Biden’s new climate proposal

The Biden administration is updating its tax credit for electric vehicles to impact EV manufacturers and champs. The changes won’t apply retroactively to orders placed before the rules take effect on April 9 — which means potential car buyers have nine days to place orders before the changes kick in. The new rules would extend EV tax incentives to purchases made in 2029 and 2030, Reuters first reported. Despite the updates, the overall dollar limit for the credit is still set at $7,500 for new purchases and $4,000 for used electric vehicles. Used cars will be eligible for the tax credit for the first time, as long as the purchase is for under $25,000 and the EV is at least two years old. Additionally, the Biden administration is capping new and used EV purchases at $80,000 and $20,000, respectively, to qualify for the full tax credit. The changes will likely impact high-end electric vehicles like Tesla’s Model S and Porsche’s Taycan.