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The Inner Income Service does appear to take heed to feedback when it proposes a rule.

The company, which is liable for implementing the brand new electric-vehicle buy tax credit handed as a part of the Inflation Discount Act, has redone the eligibility worth limits for a number of EVs. The modifications profit

Tesla

(ticker: TSLA),

Ford Motor

(F) in addition to

Normal Motors

(GM).

The

Tesla

 Mannequin Y, which is the very best promoting EV in America, now qualifies for the $7,500 credit score whether it is priced beneath $80,000. That basically means the IRS is giving the Mannequin Y the identical tax profit obtainable to SUV or vans. Earlier, a Mannequin Y needed to be priced under $55,000. That’s the worth cap for vehicles.

The Cadillac Lyriq and the Ford Mustang Mach-E have been in the identical boat because the Mannequin Y. Different similar-sized automobiles such because the Audi eTron have been handled like SUVs when it comes to eligibility from the beginning.

Now each the Lyriq and Mach-E qualify for the credit score if they’re priced beneath $80,000.

Confusion over eligibility for the EV credit score may need contributed to weak Mach-E gross sales in January.

Ford

delivered 2,626 Mach-Es in January, down 45% from the 4,775 SUVs in December. Ford minimize costs on the Mach E late in January after Tesla minimize Mannequin Y costs on Jan. 12.

The tax-credit change seems to be serving to Tesla inventory. Shares have been up 5% at $197.77 in late morning buying and selling Friday. The

S&P 500
was off 0.1% and the

Dow Jones Industrial Common
was up 0.2%.

Ford inventory was down about 7%, however the shares have been additionally reacting to weaker-than- anticipated fourth-quarter earnings reported Thursday night. GM inventory was up 0.6%, greater than 2% above its low for the day.

Write to Al Root at allen.root@dowjones.com