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Published date: June 16, 2023

Which EVs qualify for the US federal tax credits?

Which EVs qualify for the US federal tax credits?

With new EV tax credit criteria introduced to the public in April 2023, you can now earn up to $7,500 of tax credits for your new EV or PHEV. However, these credits come with some unique conditions. Here’s our guide to help you understand whether you can qualify for the tax credits.

Table of contents

Am I eligible for the new EV tax credits?

Currently, the EV tax credits are only applicable to households with an Adjusted Gross Income at or below $150,000 for individuals, $225,000 for a head of household, or $300,000 for joint households. Additionally, along with the household income considerations, these tax credits only apply to electric vehicles assembled in North America and bought after December 31, 2022. The Manufacturer Suggested Retail Price (MSRP) of the vehicle must be above $55,000 for sedan and $80,000 for SUVs, vans, or pickup trucks.

Starting January 1, 2024 individuals eligible for federal tax credits will be able to receive their credits at point of sale. This means, you will no longer have to wait until you file your taxes to get your money back! New EV buyers will transfer the tax credit to the dealer in exchange for the equivalent in cash, a form of partial payment or down payment.

Which EVs and plug-in hybrids (PHEVs) qualify for the tax credit?

Below, we have put together a comprehensive table with the models of electric vehicles eligible for a tax credit and their respective EV tax credit amounts.

If you’re considering a Plug-In Hybrid Electric Vehicle (PHEV), they also qualify for the tax credit. See all PHEV models eligible for the tax credit and their respective tax credit amounts below.

List of the EVs & PHEVs that qualify for EV tax credits

What are the vehicle requirements to qualify for the EV tax credits for a new EV in the Inflation Reduction Act?

  • To get the full $7,500 tax credit, the EV must be assembled in North America and meet both of the below criteria, as the $7,500 credit is split up into two $3,750 pieces:
  • $3,750 is received from the vehicle having at least 40% of its battery materials from the USA or countries which have a Free Trade Agreement with the USA. List countries with a Free Trade Agreement with the USA
  • $3,750 comes from at least 50% of the battery components coming from the USA or countries with a Free Trade Agreement with the USA
  • Both of these requirements shift to greater amounts each year on sliding scales, see below:
  • Mineral requirement: 40% in 2023, 50% in 2024, 60% in 2025, 70% in 2026, 80% in 2027
  • Battery components requirement: 50% in 2023, 60% in 2024, 70% in 2026, 80% in 2027, 90% in 2028, 100% in 2029
  • Also, beginning in 2025 if any EV has either of the above from a foreign entity of concern, it will not qualify
  • EVs must have at least 7kWh battery size and a gross vehicle weight rating less than 14,000 pounds

What are the Used EV + PHEV tax credit requirements?

To qualify as an individual, you must have lower income requirements than what is required for the new vehicle tax credit: $75k for individuals, $112.5k for heads of households, and $150k for joint filers. The credit is worth 30% of the sale price of the used EV up to $4,000. When the used EV price crosses the $13,330 price threshold, then the full $4,000 credit will be applied so long as the vehicle meets the below criteria:

  • Vehicle must be an eligible FCV or Plug-In with the battery being at least 7kWh and the vehicle weighing less than 14,000 pounds
  • Have a model year at least 2 years earlier than when you buy it (for example buying in 2023, it must be a used EV from 2021 or before)
  • Cannot have been transferred after August 16, 2022 to a qualified buyer
  • Be for use in the USA
  • Be purchased from a dealer
  • Purchaser must be an individual
  • The vehicle only qualifies for this credit once in its life

Further requirements for individuals include:

  • You must not be the original owner
  • You must be the individual who bought the vehicle for use & not resale
  • Not claimed as a dependent on anyone’s tax returns
  • You have not claimed another used clean vehicle credit in the three years before the EV purchase date

Where can I find EVs eligible for the tax credits?

Check out our EV listings platform to find the electric models located near you that qualify for tax credits.

Check out where an EV is assembled by searching its VIN

The US DOE VIN decoder tool confirms where a given EV is assembled. Check it out here.

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