Almost every major car manufacturer now offers electric vehicles or at least hybrid alternatives. If you’re feeling the pressure to get an EV, there’s no rush! Here’s why it’s a good idea to wait.
The IRS’ new guidelines again cut back on the number of electric vehicles that qualify for a $7,500 tax credit. The number of qualifying models is shrinking yearly, and the list is shorter than ever. Here’s what you need to know.
Making the list
To qualify for a $7,500 tax credit, a vehicle must be assembled in North America and meet a set of guidelines that cover where battery materials were sourced. At least 50% of a manufacturer’s battery components and 40% of their critical minerals must be sourced from the U.S. or its trade partners.
Drivers are eligible for the tax credit if the car’s sticker price is less than $55,000 for sedans and no more than $80,000 for SUVs and vans.
Here’s what qualifies as of April 18:
- 2023-24 Cadillac Lyriq
- 2024 Chevrolet Blazer EV
- 2023-24 Chevrolet Bolt EV
- 2023-24 Chevrolet Bolt EUV
- 2024 Chevrolet Equinox EV
- 2024 Chevrolet Silverado EV
- 2022-23 Ford F-150 Lightning
- 2022-23 Tesla Model Y
- 2022-23 Tesla Model Y Long Range
- 2022 Tesla Model Y Performance
And here are the hybrid vehicles that qualify:
- 2022-23 Chrysler Pacifica Plug-In Hybrid
- 2022-23 Lincoln Aviator Grand Touring Plug-In Hybrid
The vehicle’s tax credit is cut in half if any battery materials come from specific countries (notably China). This brings us to the next list.
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Partial credit
If you don’t see the vehicle you want on the list, don’t despair! Some are eligible for a $3,750 tax credit. Hey, it’s better than nothing.
Here are the EVs that are eligible for a $3,750 credit:
- 2022-23 Ford E-Transit
- 2022-23 Ford Mustang Mach-E
- 2022-23 Tesla Model 3
And here are the eligible hybrids:
- 2022-23 Jeep Wrangler 4xe
- 2022-23 Jeep Grand Cherokee 4xe
- 2022-23 Ford Escape Plug-In Hybrid
- 2022-23 Lincoln Corsair Grand Touring
These aren’t exhaustive or final lists. Regulations will change (for better or worse), and as more manufacturers pump out EVs, we should see the list grow.
On the plus side, more EVs, hybrids and batteries will likely be produced in the U.S. while reducing our dependence on foreign nations.
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