Governments worldwide have promoted the shift to electric vehicles to hit their net-zero emission targets. In the United States, customers heavily worry about their EV federal tax credits eligibility, particularly now that new incentives have been made available.
“All electric and plug-in hybrid vehicles that were purchased new in or after 2010 may be eligible for a federal income tax credit of up to $7,500.”
US Department of Energy
However, several factors must be considered before you can qualify for the said tax credit.
Electrek has provided all the information you need on tax credits for your new or current electric vehicle to address the customer dilemma.
Amount of the federal tax credit offered
Every qualified electric vehicle “may” receive “up to” $7,500 in federal tax credit. That said, the actual incentive you may get would be based on the amount you owed when you purchased the EV.
Suppose you owe $7,500 or more in federal income tax. In that case, you will be qualified to receive the full federal tax credit.
That said, any excess amount from the $7,500 cannot be refunded or applied as a tax credit for the following year. But the new terms allow you to claim that credit right away at the time your EV is purchased.
POTUS formally signed on the revived EV federal tax credits
The Biden administration’s efforts to expand electric vehicle adoption have been uncertain for quite a while, not until this past summer.
The US Senate announced before the end of July 2022 that it would soon vote on reforming EV tax credits.
The revived EV federal tax credits received Senate approval on August 7, 2022, and President Biden signed it into law a week later.
Interestingly, the reform legislation will also cover EVs delivered after December 31, 2022. Electrek provided a summary of the new Inflation Reduction Act‘s provisions below:
According to attorney Chris Stidham, the Inflation Reduction Act’s tax credits have the following more specific terms:
What are the available EV credits before the terms change?
The new terms introduced by the Inflation Reduction Act disqualify most of the currently qualified EVs for the federal tax credits in the US.
However, it must be noted that they still have a chance to qualify by next year as these automakers have manufacturing facilities in North America. They also have to comply with EVs’ price cap of $80,000.
For instance, Rivian models are built in North America, but some exceed the $80k threshold for electric trucks. Meanwhile, Fisker‘s flagship Ocean SUV pricing qualifies for the strict threshold, but it is built in Austria.
The Inflation Reduction Act contains certain language that permits “written binding contracts” per a “transition rule.” That said, customers are still eligible if they signed the legally binding contract before the POTUS signed the bill into law. That is, even if the EV is delivered after the bill is signed.
However, it is no longer available because the bill has been officially signed.
EVs acquired and delivered between August 16 and December 31, 2022
The following transition rule has recently been added to the IRS. Notably, these are for people who are already about to receive their EVs but are still wondering if they still qualify before the new credit provisions take effect. The response is yes in some cases, according to the IRS page:
“If you purchase and take possession of a qualifying electric vehicle after August 16, 2022, and before January 1, 2023, aside from the final assembly requirement, the rules in effect before the enactment of the Inflation Reduction Act for the EV credit apply (including those involving the manufacturing caps on vehicles sold).”
IRS page
For better guidance, have a look at Electrek’s instructive flow chart:
EVs eligible for the latest tax credit
The EVs listed below would be eligible for the full $7,500 credit starting on January 1, 2023, under the conditions outlined above.
Note: The following list of qualified EVs was provided by fueleconomy.gov, which, like the rest of us, is still currently determining which EVs will certainly qualify.
Qualified all-electric vehicles as of 12/28/22
| Make and Model | Full Tax Credit |
| CADILLAC (GM) (would not qualify until 1/1/23) | |
| Lyriq (2023) | $,7500 |
| CHEVROLET (GM) (would not qualify until 1/1/23) | |
| Bolt EUV (2022-2023) | $7,500 |
| Bolt EV (2022-2023) | $7,500 |
| FORD | |
| F-150 Lightning (2022) (Pro, XLT, and Lariat trims) | $7,500 |
| Mustang Mach-E (2022) | $7,500 |
| E-Transit (2022-2023) | $7,500 |
| NISSAN | |
| LEAF (2022-2023) | $7,500 |
| RIVIAN | |
| EDV 700 (2022) | $7,500 |
| R1T (2022) (Dual Motor Adventure only) | $7,500 |
| R1S (2022) (Dual Motor Adventure only) | $7,500 |
| TESLA (would not qualify until 1/1/23) | |
| Model 3 (2022) | $7,500 |
| Model Y (2022) | $7,500 |
| VOLKSWAGEN | |
| ID.4 (2023) | $7,500 |
Qualified Plug-in Hybrid Electric Vehicles as of 9/3/22
| Make and Model | Full Tax Credit |
| AUDI | |
| Q5 (2022) | $7,500 |
| BMW | |
| 330e (2022-2023) | $7,500 |
| X5 xDrive45e (2022-2023) | $7,500 |
| CHRYSLER | |
| Pacifica Plug-in Hybrid (2022) | $7,500 |
| FORD | |
| Escape Plug-in Hybrid (2022) | $7,500 |
| JEEP | |
| Grand Cherokee 4xe (2022-2023) | $7,500 |
| Wrangler 4×3 (2022-2023) | $7,500 |
| LINCOLN | |
| Aviator PHEV (2022-2023) | $7,500 |
| Corsair Plug-in Hybrid (2022) | $7,500 |
| VOLVO | |
| S60 Recharge (2022) | $7,500 |
Which electric vehicles are eligible for the current tax credit?
Eventually, as automakers change course to move their assembly to North America, some of these EVs may qualify once more.
Qualified all-electric vehicles as of 12/13/2022
| Make and Model | Full Tax Credit |
| AUDI | |
| e-tron Sportback (2020-2022) | $7,500 |
| e-tron SUV (2019, 2021-2022) | $7,500 |
| e-tron GT / RS e-tron GT (2022-2023) | $7,500 |
| e-tron S (Standard and Sportback) (2022) | $7,500 |
| Q4 50 e-tron Quattro (2022) | $7,500 |
| BMW | |
| i3 Sedan (2014-2021) | $7,500 |
| i3s (2018-2021) | $7,500 |
| i4 eDrive40/M50 Gran Coupe (2022-2023) | $7,500 |
| iX xDrive50/M60(2022-2023) | $7,500 |
| i7 xDrive60 (2023) | $7,500 |
| BYD | |
| e6 (2012-2017) | $7,500 |
| CANOO | |
| Lifestyle Vehicle (2023) | $7,500 |
| FIAT | |
| 500e (2013-2019) | $7,500 |
| FORD | |
| Focus EV (2012-2018) | $7,500 |
| Mustang Mach-E (all 2021/2022 trims including GT) | $7,500 |
| E-Transit (2022-2023) | $7,500 |
| F-150 Lightning (standard/extended range) (2022) | $7,500 |
| GENERAL MOTORS (GM) | |
| Not currently eligible for tax credits | ––––– |
| GENESIS | |
| GV60 (2023) | $7,500 |
| Electrified G80 (2022) | $7,500 |
| HYUNDAI | |
| Ioniq Electric (2017-2021) | $7,500 |
| Ioniq 5 (2022-2023) | $7,500 |
| Kona Electric (2019-2023) | $7,500 |
| JAGUAR | |
| I-Pace (2019-2022) | $7,500 |
| I-Pace HSE (2022-2023) | $7,500 |
| KANDI | |
| EX3 (2019-2021) | $7,500 |
| K22 (2019-2020) | $7,500 |
| K23 (2020-2022) | $7,500 |
| K27 (2020-2022) | $7,500 |
| KIA | |
| Niro EV (2019-2022) | $7,500 |
| Soul Electric (2015-2020) | $7,500 |
| EV6 (58 kWh, 77.4 kWh) (2022) | $7,500 |
| LUCID MOTORS | |
| Lucid Air Dream Edition (2022) | $7,500 |
| Lucid Air Grand Touring (2022) | $7,500 |
| MAZDA | |
| MX-30 (2022) | $7,500 |
| MERCEDES-BENZ | |
| EBQ 350 4matic (2022) | $7,500 |
| EBQ 400 4matic (2022) | $7,500 |
| AMG EQS (2022) | $7,500 |
| EQS 450 4matic (2022) | |
| EQS 450+ (2022) | $7,500 |
| EQS 580 4matic (2022) | $7,500 |
| EQS 450+ SUV (2022) | $7,500 |
| EQS 450 4matic SUV (2022) | $7,500 |
| EQS 580 4matic SUV (2022) | $7,500 |
| B-Class EV (2014-2017) | $7,500 |
| MINI | |
| Cooper S E Hardtop 2 & 4 Door (2020-2023) | $7,500 |
| MITSUBISHI | |
| i-MiEV (2012, 2014, 2016, 2017) | $7,500 |
| NISSAN | |
| LEAF (2011-2023) | $7,500 |
| Ariya (2023) | $7,500 |
| POLESTAR | |
| Polestar 2 (2021) | $7,500 |
| Polestar 2 Long Range – Single & Dual Motor (2022-2023) | $7,500 |
| PORSCHE | |
| Taycan (2020-2022) (all trims) | $7,500 |
| RIVIAN | |
| R1T (2022) | $7,500 |
| R1S (2022) | $7,500 |
| EDV 700 (2022) | $7,500 |
| SMART USA | |
| EQ fortwo Coupe (2019) | $7,500 |
| EQ fortwo Cabrio (2019) | $7,500 |
| SUBARU | |
| Solterra (2023) | $7,500 |
| TESLA | |
| Not currently eligible for tax credits | ––––– |
| TOYOTA | |
| Toyotas purchased after 9/30/23 are no longer eligible for tax credits | ––––– |
| RAV4 EV (2012-2014) | $7,500 |
| VOLKSWAGEN | |
| e-Golf (2015-2019) | $7,500 |
| ID.4 EV (First/Pro/Pro S) (2021-2022) | $7,500 |
| VOLVO | |
| C40 Recharge Pure Electric (2022-2023) | $7,500 |
| XC40 Recharge Pure Electric (2021-2023) | $7,500 |
Qualified Plug-in hybrid electric vehicles as of 12/13/2022
The US Department of Energy offers the full detailed list on its website.
| Make and Model | Full Tax Credit |
| AUDI | |
| A3 e-tron / e-tron ultra (2016-2018) | $4,502 |
| A7 55 TFSI e Quattro (2021) | $6,712 |
| A7 TFSI e Quattro (2022) | $7,500 |
| A8L PHEV (2020) | $6,712 |
| A8L 60 TFSI e Quattro (2021) | $6,712 |
| Q5 PHEV (2020) | $6,712 |
| Q5 55 TFSI e Quattro (2021) | $6,712 |
| Q5 TFSI e Quattro (2022-2023) | $7,500 |
| BENTLEY | |
| Bentayga Hybrid (2020-2021) | $7,500 |
| Flying Spur Hybrid (2022) | $7,500 |
| BMW | |
| i3 Sedan w/ Range Extender (2014-2021) | $7,500 |
| i3s w/ Range Extender (2018-2021) | $7,500 |
| BMW i8 (2014-2017) | $3,793 |
| i8 Coupe/Roadster (2018-2020) | $5,669 |
| X3 xDrive30e (2020-2021) | $5,836 |
| X5 xDrive40e (2016-2018) | $4,668 |
| X5 xDrive45e (2021-2022) | $7,500 |
| 330e (2016-2018) | $4,001 |
| 330e/330e xDrive (2021-2023) | $5,836 |
| 530e/530e xDrive (2018-2019) | $4,668 |
| 530e/530e xDrive (2020-2023) | $5,836 |
| 740e (2017) | $4,668 |
| 740e xDrive (2018-2019) | $4,668 |
| 745e xDrive (2020-2022) | $5,836 |
| CHRYSLER | |
| Pacifica Plug-In Hybrid (2017-2022) | $7,500 |
| FERRARI | |
| SF90 Stradale (2020-2021) | $3,501 |
| 296 GTB (2022) | $3,334 |
| FISKER AUTOMOTIVE | |
| Karma Sedan (2012) | $7,500 |
| FORD | |
| C-Max Energi (2013-2017) | $4,007 |
| Fusion Energi (2013-2018) | $4,007 |
| Fusion Energi (2019-2020) | $4,609 |
| Escape Plug-in Hybrid (2020-2022) | $6,843 |
| GENERAL MOTORS (GM) | |
| Not currently eligible for tax credits | ––––– |
| HONDA | |
| Accord Plug-in Hybrid (2014) | $3,626 |
| Clarity Plug-in Hybrid (2018-2021) | $7,500 |
| HYUNDAI | |
| Ioniq Plug-in Hybrid (2018-2022) | $4,543 |
| Sonata Plug-in Hybrid (2016-2019) | $4,919 |
| Tucson Plug-in Hybrid (2022-2023) | $6,587 |
| Santa Fe Plug-in Hybrid (2022-2023) | $6,587 |
| JEEP | |
| Grand Cherokee PHEV (2022-2023) | $7,500 |
| Wrangler Unlimited PHEV (2021-2023) | $7,500 |
| KARMA | |
| GS-6 (2021-2022) | $7,500 |
| Revero (2018-2022) | $7,500 |
| KIA | |
| Niro Plug-in Hybrid (2018-2022) | $4,543 |
| Optima Plug-in Hybrid (2017-2020) | $4,919 |
| Sorento Plug-in Hybrid (2022) | $6,587 |
| Sportage PHEV (2023) | $6,586.60 |
| LAND ROVER | |
| Range Rover/Sport PHEV (2019) | $7,087 |
| Range Rover/Sport PHEV (2020-2022) | $6,295 |
| Range Rover SE PHEV (2023) | $7,500 |
| Rover Range Rover Sport Autobiography PHEV (2023) | $7,500 |
| LEXUS | |
| Lexus’ purchased after 9/30/23 are no longer eligible for tax credits | ––––– |
| NX Plug-in Hybrid (2022) | $7,500 |
| LINCOLN | |
| Aviator Grand Touring (2020-2023) | $6,534 |
| Corsair Reserve Grand Touring PHEV (2021-2022) | $6,843 |
| Corsair Grand Touring PHEV (2022) | $6,843 |
| McLAREN | |
| Artura (2022-2023) | $4,585 |
| MERCEDES-BENZ | |
| S550e Plug-in Hybrid (2015-2017) | $4,460 |
| GLE550e 4matic (2016-2018) | $4,460 |
| GLC350e 4matic (2018-2019) | $4,460 |
| GLC350e 4M EQ (2020) | $6,462 |
| S560e EQ PHEV (2020) | $6,462 |
| C350e (2016-2018) | $3,501 |
| MINI | |
| Cooper S E Countryman ALL4 (2018-2019) | $4,001 |
| Cooper S E Countryman ALL4 (2020-2022) | $5,002 |
| MITSUBISHI | |
| Mitsubishi Outlander Plug-in (2018-2020) | $5,836 |
| Mitsubishi Outlander Plug-in (2021-2023) | $6,587 |
| POLESTAR | |
| Polestar 1 (2020-2021) | $7,500 |
| PORSCHE | |
| Cayenne S E-Hybrid (2015-2018) | $5,336 |
| Cayenne E-Hybrid / Coupe (2019-2020) | $6,712 |
| Cayenne Turbo S E-Hybrid / Coupe (2021) | $7,500 |
| Cayenne E-Hybrid / Coupe (2021-2022) | $7,500 |
| Panamera S E-Hybrid (2014-2016) | $4,752 |
| Panamera 4 E-Hybrid (2018) | $6,670 |
| Panamera 4 E-Hybrid (2019-2020) | $6,712 |
| Panamera 4 E-Hybrid (2021-2022) | $7,500 |
| SUBARU | |
| Crosstrek Hybrid (2019-2022) | $4,502 |
| TESLA | |
| Not currently eligible for tax credits | ––––– |
| TOYOTA | |
| Toyotas purchased after 9/30/23 are no longer eligible for tax credits | ––––– |
| Prius Plug-in Hybrid (2012-2015) | $2,500 |
| Prius Prime Plug-in Hybrid (2017-2022) | $4,502 |
| RAV4 Prime Plug-in Hybrid (2021-2022) | $7,500 |
| VOLVO | |
| S60 (2019) | $5,002 |
| S60 (2020-2022) | $5,419 |
| S60 Extended Range (2022-2023) | $7,500 |
| S90 (2018-2019) | $5,002 |
| S90 (2020-2022) | $5,419 |
| S90 Extended Range (2022-2023) | $7,500 |
| V60 (2020-2022) | $5,419 |
| V60 Extended Range (2022-2023) | $7,500 |
| XC60 (2018-2019) | $5,002 |
| XC60 (2020-2022) | $5,419 |
| XC60 Extended Range (2022-2023) | $7,500 |
| XC90 (2016-2017) | $4,585 |
| XC90 / XC90 Excellence (2018-2019) | $5,002 |
| XC90 (2020-2022) | $5,419 |
| XC90 Extended Range (2022-2023) | $7,500 |
VIN decoder tool
A VIN decoder tool from the US Department of Energy is available to determine where a certain EV was built.
Comprehensive list of state tax incentives, arranged by state
There are numerous EV incentives offered at the state level in addition to any federal credits.
For instance, California drivers may also be eligible for a $2,000–$4,500 rebate or up to $5,000 grant through the Clean Vehicle Assistance Program. Additionally, California provides qualified EV drivers with preferential parking spaces and driving lanes.
Fortunately, Electrek compiled all of those tax exemptions, credits, and rebates by state.
We hope this in-depth discussion answers all of your questions about whether your electric vehicle qualifies for the federal tax credit.
