As of January 1st, 2023, a bunch of electric vehicles became newly eligible for the $7,500 tax credit, which passed into law as part of the $430 billion Inflation Reduction Act a year ago.
Some models new to the list had lost their eligibility when their manufacturer hit the previous credit’s sales cap of 200,000 vehicles (Tesla models, Chevy Bolts). Others have recently shifted their production to North America, meeting one of the crucial requirements (VW ID.4).
There’s still a lot in the air right now
There’s also a limit on how much income you can earn in order to be eligible for the credit. Households with an adjusted gross income up to $300,000 will still qualify for the credit, while heads of household must earn below $225,000 and individual filers below $150,000.
There’s still a lot in the air right now — the Treasury Department has set a March deadline for releasing guidance on some of the thornier issues surrounding battery material sourcing and other rules that could drastically reduce the eligibility list if enacted — but for now, these are the EVs that qualify.
Foreign automakers are pressuring the Biden administration to give them a piece of the action, while Senator Joe Manchin (D-WV) is threatening to block the implementation in an effort to prevent companies from exploiting loopholes. And Tesla CEO Elon Musk is whining about how it’s “messed up” that certain versions of the Tesla Model Y that exceed the $80,000 price cap don’t qualify, while a bunch of hybrid Jeeps do.
Bottom line: if you’re unsure whether the new EV you’re eyeing qualifies for the credit, talk to an accountant. Every state has at least a few CPAs that are familiar with the EV tax credit craziness and can help you navigate the murky waters ahead. They can also tell you what state incentives, if any, may be available.
This list is a good start, but don’t consider the last word.
Eligible EVs for the $7,500 tax credit
|Model year||Vehicle description||Applicable MSRP limit|
|2023||Audi Q5 TFSI e Quattro (PHEV)||$80,000|
|2021, 2022, 2023||BMW 330e||$55,000|
|2021, 2022, 2023||BMW X5 xDrive45e||$80,000|
|2022, 2023||Ford Escape Plug-In Hybrid||$80,000|
|2022, 2023||Ford E-Transit||$80,000|
|2022, 2023||Ford F-150 Lightning||$80,000|
|2022, 2023||Ford Mustang Mach-E||$55,000|
|2022, 2023||Lincoln Aviator Grand Touring||$80,000|
|2022, 2023||Lincoln Corsair Grand Touring||$55,000|
|2022, 2023||Chevrolet Bolt||$55,000|
|2022, 2023||Chevrolet Bolt EUV||$55,000|
|2022, 2023||Cadillac Lyriq||$55,000|
|2021, 2022, 2023||Nissan Leaf S||$55,000|
|2021, 2022||Nissan Leaf S Plus||$55,000|
|2021, 2022||NIssan Leaf SL Plus||$55,000|
|2021, 2022||Nissan Leaf SV||$55,000|
|2021, 2022, 2023||Nissan Leaf SV Plus||$55,000|
|2022, 2023||Rivian R1S||$80,000|
|2022, 2023||Rivian R1T||$80,000|
|2022, 2023||Chrysler Pacifica PHEV||$80,000|
|2022, 2023||Jeep Wrangler 4xe||$80,000|
|2022, 2023||Jeep Grand Cherokee 4xe||$80,000|
|2022, 2023||Tesla Model 3 Rear Wheel Drive||$55,000|
|2022, 2023||Tesla Model 3 Long Range||$55,000|
|2022, 2023||Tesla Model Y All-Wheel Drive - 7 seat variant (3-rows)||$80,000|
|2022, 2023||Tesla Model Y Long Range - 7 seat variant (3-rows)||$80,000|
|2022, 2023||Tesla Model Y Performance - 7 seat variant (3-rows)||$80,000|
|2022, 2023||Tesla Model Y All-Wheel Drive - 5 seat variant (2-rows)||$55,000|
|2022, 2023||Tesla Model Y Long Range - 5 seat variant (2-rows)||$55,000|
|2022, 2023||Tesla Model Y Performance - 5 seat variant (2-rows)||$55,000|
|2023||Volkswagen ID.4 Pro||$55,000|
|2023||Volkswagen ID.4 Pro S||$55,000|
|2023||Volkswagen ID.4 S||$55,000|
|2023||Volkswagen ID.4 AWD Pro||$80,000|
|2023||Volkswagen ID.4 AWD Pro S||$80,000|
|2022||Volvo S60 (PHEV)||$55,000|
|2022||Volvo S60 Extended Range||$55,000|
|2023||Volvo S60 T8 Recharge (Extended Range)||$55,000|
Eligible EV for the $7,500 tax credit