The Treasury Department said that it is adjusting its definition of an SUV, thus qualifying more vehicles for a $7,500 tax credit if they sell for under $80,000.
More electric vehicles made by Tesla Inc., General Motors Co. and other auto makers will be eligible for tax credits under a revamp announced by the Biden administration on Friday.
The Treasury said it will begin using the “consumer-facing EPA Fuel Economy Labeling standard” to define a car or an SUV, versus the Environmental Protection Agency’s corporate average fuel economy, or CAFE, standard.
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