The US Treasury has announced which electric vehicles meet its strict new battery component and mineral standards required to qualify for the clean vehicle credit, which is worth up to $7,500.
Fewer than a dozen cars are eligible for the full incentive, according to the Treasury Department’s list, all from US-based manufacturers.
The Inflation Reduction Act overhauled the EV tax break, adding income limits, price caps and other provisions. It also broke the credit into two parts: You can claim $3,750 if half of the value of your vehicle’s battery components are manufactured or assembled in North America.
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The other half is dependent on at least 40% of critical minerals like graphite, lithium and cobalt being sourced from the US or a trade partner.
While most of the new EV guidance went into effect in January 2023, final mineral and battery requirements were delayed until April.
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Which models are now eligible?
For an EV received on or after April 18, 2023, to qualify for the full $7,500 credit, half of the value of its battery components must be manufactured or assembled in North America and 40% of its critical minerals must be sourced from the US or a trade partner country.
The battery component standard increases annually until it hits 100% in 2029, while the mineral requirement ratchets up through 2027, when it will max out at 80%.
These models remain eligible under the new provisions, which are in effect through Dec. 31, 2032.
Qualify for full $7,500 credit
| 2022-2023 Chrysler Pacifica PHEV |
|---|
| 2022-2023 Chevrolet Bolt |
| 2022-2023 Chevrolet Bolt EUV |
| 2023-2024 Cadillac LYRIQ |
| 2024 Chevrolet Silverado |
| 2024 Chevrolet Blazer |
| 2024 Chevrolet Equinox |
| 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 |
These models meet only one of the requirements and qualify for 50% of the credit, or $3,750.
Qualify for 50% of EV tax credit
| 2022 Ford e-Transit |
|---|
| 2022 Ford Escape Plug-in Hybrid |
| 2022-2023 Ford F-150 Lightning (standard and extended range) |
| 2022-2023 Ford Mustang Mach-E (standard and extended range) |
| 2022-2023 Jeep Grand Cherokee PHEV 4xe |
| 2022-2023 Jeep Wrangler PHEV 4xe |
| 2023 Lincoln Aviator Grand Touring |
| 2022 Lincoln Corsair Grand Touring |
| 2022-2023 Tesla Model 3 Standard Range RWD |
The lists will likely grow as “some qualified manufacturers have yet to submit information,” the Treasury Department said in a statement.
Check the Department of Energy’s fuel economy website for updates.
Which cars no longer qualify at all?
These models were eligible at the start of the year but do not meet the new standards. According to the IRS, you can still claim the credit if the vehicle was received — not just purchased — on or before April 17, 2023.
No tax credit
| Audi Q5 TFSI e Quattro |
|---|
| BMW 330e |
| BMW X5 xDrive45e |
| Genesis Electrified GV70 |
| Nissan Leaf S, S Plus, SL Plus, SV and SV Plus |
| Rivian R1S |
| Rivian R1T |
| Volkswagen ID.4 (VW had expected to qualify for at least one credit) |
| Volvo S60 (PHEV), Extended Range and T8 Recharge (Extended Range) |
I bought my EV in 2022. Does it qualify for the credit?
To qualify for the credit on your 2022 tax return, a vehicle must have been purchased before Jan. 1, 2023, be for your own use and be driven primarily in the US.
It must also have an external charging source and a gross vehicle weight rating of under 14,000 pounds.
To be eligible, the vehicle must also come from a manufacturer that hasn’t sold more than 200,000 EVs in the US. In practice, that makes current models from Tesla and Ford ineligible, though this stipulation has been lifted for 2023.
If you bought your EV between Aug. 17 and Dec. 31, 2022, it must have undergone final assembly in North America.
According to the IRS, you don’t have to worry about the final assembly requirement if you “entered into a written binding contract” after Dec. 31, 2021, but before Aug. 17, 2022. (It’s a good idea to check with the IRS or your tax preparer to be certain, though.)
Below is the list of approved 2022 car models from the Department of Energy’s Alternative Fuels Data Center website. (You can also enter your automobile’s vehicle identification number, or VIN, on the Department of Energy website.)
As noted, some manufacturers have reached the maximum number of EVs they could sell and still be eligible for the full credit.
Approved 2022 vehicles
| Vehicle | Manufacturer sales cap |
|---|---|
| Audi Q5 | |
| BMW 330e | |
| BMW X5 xDrive45e (PHEV) | |
| Chevrolet Bolt EUV | Manufacturer sales cap met |
| Chevrolet Bolt EV | Manufacturer sales cap met |
| Chrysler Pacifica PHEV | |
| Ford E-Transit | |
| Ford Escape PHEV | |
| Ford F-150 Lightning | |
| Ford Mustang MACH E | |
| GMC Hummer EV Pickup | Manufacturer sales cap met |
| GMC Hummer EV SUV | Manufacturer sales cap met |
| Jeep Grand Cherokee 4xe | |
| Jeep Wrangler 4xe | |
| Lincoln Aviator PHEV | |
| Lincoln Corsair PHEV | |
| Lucid Air | |
| Nissan Leaf | |
| Rivian EDV | |
| Rivian R1S | |
| Rivian R1T | |
| Tesla Model 3 | Manufacturer sales cap met |
| Tesla Model S | Manufacturer sales cap met |
| Tesla Model X | Manufacturer sales cap met |
| Tesla Model Y | Manufacturer sales cap met |
| Volvo S60 Recharge |
If you purchased an EV in a previous year but missed claiming the credit, you may be able to claim it by filing an amended return for the tax year when you took possession of it.
I bought my EV in 2023 but before April 18. Is it eligible?
These makes and models qualify for the credit if they were received between Jan. 1 and April 17, 2023, according to the IRS.
All-electric vehicles
| 2023 | BMW 330e |
|---|---|
| 2023 | BMW X5 xDrive45e (PHEV) |
| 2023 | Cadillac Lyriq |
| 2023 | Chevrolet Bolt EV |
| 2023 | Ford E-Transit |
| 2023 | Jeep Grand Cherokee 4xe |
| 2023 | Jeep Wrangler 4xe |
| 2023 | Lincoln Aviator PHEV |
| 2023 | Lincoln Corsair Grand Touring |
| 2023 | Mercedes EQS SUV |
| 2023 | Nissan Leaf |
| 2023 | Rivian R1S |
| 2023 | Rivian R1T |
| 2023 | Tesla Model 3 |
| 2023 | Tesla Model S |
| 2023 | Tesla Model X |
| 2023 | Tesla Model Y |
| 2023 | Volkswagen ID.4 |
Plug-in hybrids
| 2023 | Audi Q5 TFSI Quattro |
|---|---|
| 2023 | BMW 330e |
| 2023 | BMW X5 xDrive45e |
| 2023 | Chrysler Pacifica |
| 2023 | Ford Escape |
| 2023 | Jeep Grand Cherokee 4xe |
| 2023 | Jeep Wrangler 4xe |
| 2023 | Lincoln Aviator Grand Touring |
| 2023 | Lincoln Corsair Grand Touring |
| 2023 | Volvo S60 Recharge |
| 2023 | Volvo S60 t8 Recharge |
What are the other changes to the EV tax credit?
The Inflation Reduction Act made several major changes to the tax credit:
- The manufacturing cap, which disqualified automakers that have manufactured more than 200,000 EVs, has been lifted.
- There is a price cap on qualifying EVs. For passenger cars, the manufacturer’s suggested retail price, or MSRP, must be $55,000 or less. For vans, SUVs and light trucks, the ceiling is $80,000.
- Starting in 2024, the credit can be implemented at the point of sale as “cash on the hood,” meaning you can apply it toward the purchase price of your vehicle.
-
Also starting next year, vehicles that contain battery parts from “a foreign entity of concern” — a classification that includes China and Russia — will be unable to claim any of the credit. For critical minerals, the cutoff is 2025.
There is also a ceiling on the adjusted gross income to qualify for the credit.
Income cap for EV tax credit
| Filing status | Income |
|---|---|
| Single | $150,000 |
| Head of household | $225,000 |
| Married, filing jointly | $300,000 |
| Married, filing separately | $150,000 |
For the most part, these changes took effect on Jan. 1, 2023, and will remain in effect until Jan. 1, 2032. Always check the IRS website for updates.
Can I claim the tax credit on a used EV?
Beginning in 2023, plug-in electric or fuel-cell EVs can qualify for a credit of up to 30% of its purchase price, maxing out at $4,000.
There are certain restrictions:
- The used EV tax credit can only be claimed once in a vehicle’s lifetime. Subsequent owners will not be eligible.
- The MSRP of the car must be $25,000 or less.
- The car must be at least 2 years old. If you bought it in 2023, it must be from model year 2021 or earlier.
- Used vehicles purchased before 2023 are not eligible.
- The vehicle must have been purchased from a qualified dealer who reports the transaction to the IRS.
- The vehicle must otherwise meet the requirements for the EV credit.
Below are income caps for owners of used EVs wishing to claim the credit.
Used EV income cap
| Filing status | Modified adjusted gross income |
|---|---|
| Single | $75,000 |
| Head of household | $112,500 |
| Married, filing jointly | $150,000 |
| Married, filing separately | $75,000 |
How do I claim the EV tax credit?
To claim the credit for an EV you took possession of in 2022, file IRS Form 8936 with your 2022 tax return. (You will need to provide the VIN for your vehicle.)
Do individual states have EV tax incentives?
In addition to the federal EV tax credit, a number of states offer rebates for clean vehicles. Some can’t be taken in conjunction with the federal credit, so be sure to get all the information before claiming anything.
California’s Clean Vehicle Rebate Project offers credits of between $1,000 and $7,000 for the purchase or lease of certain new EVs, plug-in hybrids and fuel-cell vehicles.
EnergySage, an online marketplace for home solar-energy solutions, has a list of state rebate programs.
The Energy Department’s Alternative Fuels Data Center has information on various incentives offered by states, utilities and private organizations.
Do I get a tax credit for installing an EV charger?
The Inflation Reduction Act also extended the tax break for residential charging systems through 2032 and made it retroactive to Jan. 1, 2022.
It’s worth $1,000, or 30% of the cost of buying or installing the system, whichever is less.
The credit now also applies to bidirectional charging equipment, which lets you use your EV to power other appliances or even your home. Not many models have that capability, but it can be handy in an outage or other emergency.
To claim the Alternative Fuel Vehicle Refueling Property Credit, you must file IRS Form 8911.
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