From April 18th, Internal Revenue Service Releases New Guidance For US buyers purchasing new electric or plug-in hybrid vehicles. Currently, there are only six fully electric vehicles eligible for the $7,500 EV tax credit, with three more Chevrolets coming in 2024 (these 2024 models will roll out slowly, with at least the first A few are expected to be difficult to find). month on the market). In addition to these six fully electric vehicles, two of his plug-in hybrids are also eligible for his $7,500 full credit.
To qualify, vehicles must be assembled in North America and meet a strict set of guidelines covering the sourcing of battery materials. If the battery material comes from certain countries (importantly including China), the vehicle tax credit is automatically cut in half. Additionally, according to the IRS, the vehicle’s manufacturer’s suggested retail price (MSRP) cannot exceed $80,000 for vans, sport utility vehicles, and pickup trucks, and $55,000 for other types of vehicles (which basically means sedans). you can’t.
Electric vehicles eligible for the $7,500 EV tax credit:
Plug-in hybrid vehicles eligible for the $7,500 EV tax credit:
Fully electric and plug-in hybrid vehicles assembled in North America receive smaller credits, but have batteries with materials sourced from non-eligible countries (primarily China).
Electric vehicles eligible for the $3,750 EV tax credit:
- Ford E-Transit (2022-2023)
- Ford Mustang Mach-E — All Models (2022-2023)
- Tesla Model 3 Standard Range Rear Wheel Drive (2022-2023)
Plug-in hybrid vehicles eligible for the $3,750 EV tax credit:
- Ford Escape Plug-in Hybrid (2022-2023)
- Jeep Grand Cherokee PHEV 4xe (2022-2023)
- Jeep Wrangler PHEV 4xe (2022-2023)
- Lincoln Corsair Grand Touring (2022-2023)
A complete list of electric and plug-in hybrid vehicles eligible for the full or half EV tax credit as of April 18, 2023. Notable vehicles ineligible for the tax credit from January 1st to April 17th include Nissan Leaf, Genesis Electrified GV70, Rivian R1S and R1T, Volkswagen ID.4 . Notably, the Tesla Model 3 Standard Range Rear Wheel Drive was also previously eligible for the full EV tax credit, but now only receives a half credit due to battery materials sourced from China. Only the Tesla Model 3 uses such batteries. All other Tesla Model 3 models continue to receive the full EV tax credit.
Please note that this list is current as of April 18, 2023 and is subject to change at any time. The IRS provides guidance to automakers on the requirements to receive tax credits, and automakers can make changes to production vehicles that either get the credit or lose it.
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