The Internal Revenue Service (IRS) modified the regulatory definition of a sport utility vehicle (SUV) to make more vehicles eligible for an electric vehicle (EV) tax credit of up to $7,500.
In a notice issued on Feb. 3, the IRS and the Department of the Treasury jointly changed the vehicle classification standard by which vans, SUVs, pickup trucks, and some other vehicles are defined, making more models eligible for federal tax credits.
The Inflation Reduction Act (IRA) made SUVs priced at up to $80,000 eligible for the EV tax credit, while cars, sedans, and wagons could only qualify if they were priced at up to $55,000….