The U.S. government has revised its policy on electric vehicle (EV) tax credits and most foreign-made EVs no longer qualify. Consumers who purchase new eligible vehicles can earn a tax credit of up to $7,500.
The revision means fewer EVs qualify for the tax credit than in previous years. Nine models have been phased out, leaving 16 eligible models.
Here’s the list of eligible EVs:
2022-2023 Chrysler Pacifica PHEV
2022-2023 Jeep Wrangler PHEV 4xe
2022-2023 Jeep Grand Cherokee PHEV 4xe
2022-2023 Ford F-150 Lightning (standard and extended range)
2022 Ford e-Transit
2022-2023 Ford Mustang Mach-E (standard and extended range)
2022 Ford Escape Plug-in Hybrid
2022 Lincoln Corsair Grand Touring
2023 Lincoln Aviator Grand Touring
2022-2023 Chevrolet Bolt
2022-2023 Chevrolet Bolt EUV
2023-2024 Cadillac LYRIQ
2024 Chevrolet Silverado EV
2024 Chevrolet Blazer EV
2024 Chevrolet Equinox EV
2022-2023 Tesla Model 3 Standard Range RWD
2022-2023 Tesla Model 3 Performance
2022-2023 Tesla Model Y AWD
2022-2023 Tesla Model Y Long Range AWD
2022 Tesla Model Y Performance
Some used models also qualify for a credit
Five Tesla models make the list, along with five Ford-Lincoln models and six General Motors cars. Of course, you'll have to spend a lot of money to get that $7,500 tax credit. The Chevy Bolt and Equinox are the two "affordable" cars on the list.
There is also a tax credit that applies to used EVs. There is less emphasis on battery content or where the vehicle was manufactured. For example, a used Honda EV might qualify even though a new one doesn’t. Buyers will get a smaller tax credit and may have to meet certain income requirements.
For vehicles placed in service from January 1 to April 17, 2023, the base amount of the tax credit is $2,500. Additionally, there is an extra $417 for a vehicle with at least 7-kilowatt hours of battery capacity and an additional $417 for each kilowatt hour of battery capacity beyond 5-kilowatt hours, up to $7,500 total.
For vehicles placed in service April 18, 2023 and after:
Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to:
$3,750 if the vehicle meets the critical minerals requirement only
$3,750 if the vehicle meets the battery components requirement only
$7,500 if the vehicle meets both
A vehicle that doesn't meet either requirement will not be eligible for a credit.
To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle's VIN.