Which EVs qualify for new federal tax credits?
With the passage of historic clean energy laws in 2022, the next few years are shaping up to be electric in the United States. For drivers, federal money is available to cut off trips to the gas station and get hooked up to the grid. Electric cars benefit the climate because, unlike gasoline, electricity can be generated with clean, renewable systems like solar and wind, reducing carbon pollution and leading to healthier air.
Three provisions of the Inflation Reduction Act offer consumer tax credits for electric vehicles. The Clean Vehicle Credit applies to qualified new vehicles and is worth up to $7,500. The Used Clean Vehicle Credit is worth either $4,000 or 30% of the cost of the used vehicle, whichever is smaller. And the Commercial Clean Vehicle Credit helps businesses purchase qualified vehicles.
“Most of the EVs on the market today can handle the day-to-day needs that most people have for their around-the-town errands,” said Britt Carmon, a senior advocate for federal clean vehicles and fuels at the Natural Resources Defense Council, an environmental nonprofit. And provisions in the Bipartisan Infrastructure Law aim to build out a nationwide network of electric vehicle charging stations, which will make it easier for people to take long car trips in an EV.
To qualify for credits for a new clean energy vehicle, your adjusted gross income must be under $300,000 if your tax status is married filing jointly, under $225,000 for head-of-household status, or under $150,000 for single or married filing separately. For a used car, your adjusted gross income must be under $150,000 if your tax status is married filing jointly, or under $75,000 if your filing status is single or married filing separately.
To qualify for tax credits, vehicles must comply with manufacturing requirements, such as rules related to the geographic origin of minerals and batteries. Under the new law, these requirements will get stricter each year, but that’s not necessarily a reason to rush into buying a car. Carmon said that car manufacturers are already starting to move their supply chains into compliance so consumers shouldn’t worry too much about battery and manufacturing requirements getting stricter over time.
“As that continues to happen in the U.S. and happen in countries where we have free trade agreements, we’re still going to be able to meet the needs of the folks looking to get electric vehicles.”
With that, here’s a comprehensive list of the vehicles that qualify for the federal tax credit.* You can find more information about whether a vehicle qualifies by entering the make, model, and year at fueleconomy.gov.
$30,000 and under
Chevrolet Bolt EV and EUV
- Starts at $26,500
- Up to $7,500 in federal tax credits
Chevrolet Equinox EV
- Starts at $30,000
- Up to $7,500 in federal tax credits
$30,001-$50,000
Volkswagen ID.4 Standard, S, Pro, Pro S, Pro Plus, AWD Pro, AWD Pro S, and AWD Pro Plus
- Starts at $38,995
- Up to $7,500 in federal tax credits
Chevrolet Silverado
- Starts at $39,900
- Up to $7,500 in federal tax credits
Tesla Model 3 Standard Range RWD
- Starts at $40,240
- Up to $3,750 in federal tax credits
Ford Mustang Mach E, Standard
- Starts at $42,995
- Up to $3,750 in federal tax credits
Chevrolet Blazer EV
- Starts at $44,995
- Up to $7,500 in federal tax credits
Ford E-Transit
- Starts at 49,575
- Up to $3,750 in federal tax credits
$50,000+
Chrysler Pacifica PHEV ($7,500)
- Starts at $50,795
- Up to $7,500 in federal tax credits
Tesla Model Y AWD, Long-Range AWD, and Performance
- Starts at $52,630
- Up to $7,500 in federal tax credits
Lincoln Corsair Grand Touring
- Starts at $53,005
- Up to $3,750 in federal tax credits
Jeep Wrangler PHEV 4xe
- Starts at $54,735
- Up to $3,750 in federal tax credits
Lincoln Aviator Grand Touring
- Starts at $54,735
- Up to $7,500 in federal tax credits
Cadillac Lyriq
- Starts at $58,590
- Up to $7,500 in federal tax credits
Ford F-150 Lightning, Standard & Extended Range
- Starts at $59,974
- Up to $7,500 in federal tax credits
Jeep Grand Cherokee PHEV 4xe
- Starts at $62,095
- Up to $3,750 in federal tax credits
Rivian R1T
- Starts at $74,800
- Up to $3,750 in federal tax credits
Rivian R1S
- Starts at $79,800
- Up to $3,750 in federal tax credits
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