What EVs qualify for the federal $7,500 tax credit?

Here’s everything you need to know about obtaining a government rebate on a new EV.

What EVs qualify for the federal $7,500 tax credit?

Key Takeaways

  • Clean Vehicle Credit offers tax breaks for eligible EVs, based on qualification criteria like assembly location and purchase year.
  • Applying for the credit involves submitting Form 8936 with tax returns or coordinating credit transfer through the dealership. Eligibility varies for different EV types and purchase years.

The future is looking electric, and vehicles are at the forefront of the revolution. Indeed, 2024 is the year for a whole fleet of new EV models. And while we love electric cars for their smooth rides, fast acceleration, and energy efficiency, the real winner is the environment. EVs have the potential to reduce global carbon emissions, and to aid in the transition, the US government offers incentives with substantial tax breaks. Called the Clean Vehicle Credit, it's as high as $7,500.

You may also be able to apply the credit to the final cost of your vehicle through the dealership. It's like a discount subsidized by the government, and it circumnavigates the tax return snafu. But not every EV is eligible.

Determining if your EV qualifies is tricky. For one, there are several types of EVs: all-electric, plug-in hybrids, and fuel-cell models. Each type has its own qualifications and credit amounts. To complicate matters further, your eligibility depends on the year the vehicle was purchased, among other prerequisites.

Before we start: The BMW 2024 grand April offer

Before I get into the general breakdown of electric vehicle tax cuts, I want to highlight a get-it-while-it's-hot rebate going on with 2024 BMW EVs. It's an obvious incentive for people to buy the new 2024 BMW EVs, but there are no tricks. The 2024 models are eligible for a $5,000 rebate, an offer that lasts until April 30th. After that date, we'll see what happens. The 2024 BMW i7 sedan and iX SUV are also on the discount rack, with $7,500 rebates available. Whichever you choose, you can easily score a rebate by leasing your new car.

And if you already own a BMW, you might still be eligible for a discount. BMW is offering a $1,000 "loyalty discount" for lessees and owners of the i4, $1,500 for the i5, and a whopping $3,000 for the i7. If you fall into any of those categories, it's worth looking into.

Therefore, if you lease, own, or are looking to buy a 2024 BMW EV, check with your dealership for rebates, offers, and discounts. You can get some serious cash back simply through the limited-time promotion, so don't miss out.

Which EVs qualify for a tax rebate: Take advantage of the times

The eligible EVs are broken down into three types:

  • New EVs purchased in 2023 or after
  • New EVs purchased before 2023
  • Pre-owned EVs purchased in 2023 or after

To help folks navigate the bureaucratic jargon, I've simplified the details to help you find out if your EV qualifies for the credit. Whether you're purchasing a new EV or trying to get the Clean Vehicle Credit on one you already bought, this guide should help. I've also compiled a complete list of eligible vehicle models for the first type — new EVs purchased in 2023 or after.

What EVs qualify for the federal $7,500 tax credit?

The prerequisites for the Clean Vehicle Credit

There are a few obstacles to overcome for an EV to be eligible.

Purchased your EV from a dealership, not a private seller.

According to the IRS, "at the time of sale, a seller must give you information about your vehicle's qualifications. Sellers must also register online… If they don't, your vehicle won't be eligible."

If you're looking to buy, make sure to inquire at the dealership about the Clean Vehicle Credit. They'll most likely provide you with all the information you need and help you through the process of applying.

Final assembly of your EV must have occurred in North America.

Otherwise, your EV isn't eligible for the Clean Vehicle Credit. According to the US Department of Energy (DOE), "to be eligible… a vehicle must have undergone final assembly in North America. In general, North America includes the United States and Puerto Rico, Canada, and Mexico."

If you don't know where your EV was assembled, don't worry. The DOE has a Vehicle Identification Number (VIN) lookup tool to find out where your vehicle was last assembled.

The VIN is the code stamped on your car's dashboard, and it's 17 characters long. Enter your VIN code into the lookup tool that we linked to above, and it will tell you where your car was assembled.

Only pre-owned EVs purchased in or after 2023 and brand-new EVs are eligible

This is important for those looking to buy a pre-owned EV, since the law recently changed to exclude pre-owned EVs purchased before 2023.

Your adjusted gross income can't be greater than a certain amount

  1. New EVs purchased in or after 2023: According to the US Department of Energy, "Your modified adjusted gross income (AGI) may not exceed $300,000 for married couples filing jointly, $225,000 for heads of households, [and] $150,000 for all other filers."
  2. Pre-owned EVs purchased in or after 2023: For tax credits to apply, according to the US DOE, "Your modified adjusted gross income (AGI) may not exceed $150,000 for married filing jointly, $112,500 for heads of households, [and] $75,000 for all other filers."
  3. New EVs purchased before 2023: For tax credits for vehicles purchased prior to 2023, the DOE doesn't list any income limits.

If your EV fulfills the above prerequisites, you can proceed with our guide.

What EVs qualify for the federal $7,500 tax credit?

Bought a new EV in 2023 or later? Check this list to see if you qualify.

If you purchased an EV in 2023 or after, you may be eligible for the Clean Vehicle Credit. This list contains the vehicle models that meet the above prerequisites as well as their maximum credit amounts. However, a spot on this list isn't a guarantee. The dealership is responsible for confirming the eligibility and providing a time-of-sale report.

New EVs placed into service in the year 2024

Maker

Model

Model Year

Credit Amount

MSRP Limit

Audi

Q5 PHEV 55 TFSI e quattro

2023–2024

$3,750

$80,000

Q5 S Line 55 TFSI e quattro

2023–2024

$3,750

$80,000

Cadillac

Lyriq

2024

$7,500

$80,000

Chevrolet

Bolt EUV

2022–2023

$7,500

$55,000

Bolt EV

2022–2023

$7,500

$55,000

Chrysler

Pacifica PHEV

2022–2024

$7,500

$80,000

Ford

Escape Plug-in Hybrid

2022–2024

$3,750

$80,000

F-150 Lightning (Extended Range Battery)

2022–2024

$7,500

$80,000

F-150 Lightning (Standard Range Battery)

2022–2024

$7,500

$80,000

Honda

Prologue

2024

$7,500

$80,000

Jeep

Grand Cherokee PHEV 4xe

2022–2024

$3,750

$80,000

Wrangler PHEV 4xe

2022–2024

$3,750

$80,000

Lincoln

Corsair Grand Touring

2022–2024

$3,750

$80,000

Nissan

Leaf S

2024

$3,750

$55,000

Leaf SV Plus

2024

$3,750

$55,000

Rivian

R1S Dual Large

2023–2024

$3,750

$80,000

R1S Quad Large

2023–2024

$3,750

$80,000

R1T Dual Large

2023–2024

$3,750

$80,000

R1T Dual Max

2023–2024

$3,750

$80,000

R1T Quad Large

2023–2024

$3,750

$80,000

Tesla

Model 3 Performance

2023–2024

$7,500

$55,000

Model X Long Range

2023–2024

$7,500

$80,000

Model Y All-Wheel Drive

2023–2024

$7,500

$80,000

Model Y Performance

2023–2024

$7,500

$80,000

Model Y Rear-Wheel Drive

2024

$7,500

$80,000

Volkswagen

ID.4 AWD Pro

2023–2024

$7,500

$80,000

ID.4 AWD Pro S

2023–2024

$7,500

$80,000

ID.4 AWD Pro S Plus

2023–2024

$7,500

$80,000

ID.4 Pro

2023–2024

$7,500

$80,000

ID.4 Pro S

2023–2024

$7,500

$80,000

ID.4 Pro S Plus

2023–2024

$7,500

$80,000

ID.4 S

2023–2024

$7,500

$80,000

ID.4 Standard

2023–2024

$7,500

$80,000

Source: US Department of Energy (current as of April 22, 2024).

New EVs placed into service between January 1st, 2023 and April 17, 2023

Maker

Model

Model Year

Credit Amount

MSRP Limit

Audi

Q5 PHEV 55 TFSI e quattro

2023–2024

$3,750

$80,000

Q5 S Line 55 TFSI e quattro

2023–2024

$3,750

$80,000

BMW

X5 xDrive50e

2024

$3,750

$80,000

Cadillac

Lyriq

2023–2024

$7,500

$80,000

Chevrolet

Blazer

2024

$7,500

$80,000

Bolt

2022–2023

$7,500

$55,000

Bolt EUV

2022–2023

$7,500

$55,000

Equinox

2024

$7,500

$80,000

Silverado

2024

$7,500

$80,000

Chrysler

Pacifica PHEV

2022–2024

$7,500

$80,000

Ford

E-Transit

2022–2023

$3,750

$80,000

Escape Plug-in Hybrid

2022–2023

$3,750

$80,000

F-150 Lightning (Extended Range Battery)

2022–2023

$7,500

$80,000

F-150 Lightning (Standard Range Battery)

2022–2023

$7,500

$80,000

Mustang Mach-E (Extended Range Battery)

2022–2023

$3,750

$80,000

Mustang Mach-E (Standard Range Battery)

2022–2023

$3,750

$80,000

Honda

Prologue

2024

$7,500

$80,000

Jeep

Grand Cherokee PHEV 4xe

2022–2024

$3,750

$80,000

Wrangler PHEV 4xe

2022–2024

$3,750

$80,000

Lincoln

Aviator Grand Touring

2022–2023

$7,500

$80,000

Corsair Grand Touring

2022–2023

$3,750

$80,000

Nissan

Leaf S

2024

$3,750

$55,000

Leaf SV Plus

2024

$3,750

$55,000

Rivian

R1S Dual Large

2023–2024

$3,750

$80,000

R1S Quad Large

2022–2024

$3,750

$80,000

R1T Dual Large

2023–2024

$3,750

$80,000

R1T Dual Max

2023–2024

$3,750

$80,000

R1T Quad Large

2022–2024

$3,750

$80,000

Tesla

Cybertruck All-Wheel Drive

2024

$7,500

$80,000

Model 3 Long Range All-Wheel Drive

2023

$7,500

$55,000

Model 3 Performance

2022–2023

$7,500

$55,000

Model 3 Standard Range Rear Wheel Drive

2022–2023

$7,500

$55,000

Model X Long Range

2023

$7,500

$80,000

Model Y All-Wheel Drive

2022–2023

$7,500

$80,000

Model Y Long Range All-Wheel Drive

2022–2023

$7,500

$80,000

Model Y Performance

2022–2023

$7,500

$80,000

Model Y Rear-Wheel Drive

2023

$7,500

$80,000

Volkswagen

ID.4 AWD Pro

2023

$7,500

$80,000

ID.4 AWD Pro S

2023

$7,500

$80,000

ID.4 AWD Pro S Plus

2023

$7,500

$80,000

ID.4 Pro

2023

$7,500

$80,000

ID.4 Pro S

2023

$7,500

$80,000

ID.4 Pro S Plus

2023

$7,500

$80,000

ID.4 S

2023

$7,500

$80,000

ID.4 Standard

2023

$7,500

$80,000

Source: US Department of Energy (current as of April 22, 2024)

New EVs placed into service between April 18th, 2023 and December 31st, 2023

Maker

Model

Model Year

Credit Amount

MSRP Limit

Audi

Q5 TFSI e Quattro (PHEV)

2023

$7,500

$80,000

BMW

330e

2021–2023

$5,836

$55,000

X5 xDrive45e

2021–2023

$7,500

$80,000

X5 xDrive50e

2024

$7,500

$80,000

Cadillac

Lyriq

2022–2024

$7,500

$80,000

Chevrolet

Bolt

2022–2023

$7,500

$55,000

Bolt EUV

2022–2023

$7,500

$55,000

Silverado EV

2024

$7,500

$80,000

Chrysler

Pacifica PHEV

2022–2023

$7,500

$80,000

Ford

E-Transit

2022–2023

$7,500

$80,000

Escape Plug-In Hybrid

2022

$6,843

$80,000

Escape Plug-In Hybrid

2023

$6,885

$80,000

F-150 Lightning

2022–2023

$7,500

$80,000

Mustang Mach-E

2022–2023

$7,500

$80,000

Genesis

Electrified GV70

2023–2024

$7,500

$80,000

Jeep

Grand Cherokee 4xe

2022–2023

$7,500

$80,000

Wrangler 4xe

2022–2023

$7,500

$80,000

Lincoln

Aviator Grand Touring

2022–2023

$6,534

$80,000

Corsair Grand Touring

2022

$6,843

$80,000

Corsair Grand Touring

2023

$6,885

$80,000

Mercedes-Benz

EQE 350 SUV

2023

$7,500

$80,000

Nissan

Leaf S

2021–2023

$7,500

$55,000

Leaf S Plus

2021–2022

$7,500

$55,000

Leaf SL Plus

2021–2022

$7,500

$55,000

Leaf SV

2021–2022

$7,500

$55,000

Leaf SV Plus

2021–2023

$7,500

$55,000

Rivian

R1S

2022–2023

$7,500

$80,000

R1T

2022–2023

$7,500

$80,000

Tesla

Model 3 Long Range

2022–2023

$7,500

$55,000

Model 3 Performance

2022–2023

$7,500

$55,000

Model 3 RWD

2022–2023

$7,500

$55,000

Model Y All-Wheel Drive

2022–2023

$7,500

$80,000

Model Y Long Range

2022–2023

$7,500

$80,000

Model Y Performance

2022–2023

$7,500

$80,000

Volkswagen

ID.4

2023

$7,500

$80,000

ID.4 AWD Pro

2023

$7,500

$80,000

ID.4 AWD Pro S

2023

$7,500

$80,000

ID.4 Pro

2023

$7,500

$80,000

ID.4 Pro S

2023

$7,500

$80,000

ID.4 S

2023

$7,500

$80,000

Volvo

S60 (PHEV)

2022

$5,419

$55,000

S60 Extended Range

2022

$7,500

$55,000

S60 T8 Recharge (Extended Range)

2023

$7,500

$55,000

Source: US Department of Energy (current as of April 22, 2024)

What EVs qualify for the federal $7,500 tax credit?

If my EV qualifies for a tax credit, how do I apply for it?

If your EV qualifies, applying for the credit is as easy as completing and attaching Form 8936 (Qualified Plug-In Electric Drive Motor Vehicle Credit) to your yearly tax returns. You can download the form and its instructions from the IRS's website here. If you use a tax attorney or tax filing service, make sure to request this form when submitting your documents.

We strongly recommend ensuring that you qualify for the Clean Vehicle Credit before proceeding by using the above resources or navigating the US DOE's website on the subject . Otherwise, if you don't qualify, you'll be wasting your time (and potentially money paid to a tax attorney).

You may also be able to apply the credit directly to the purchase through the dealership. This basically works as a credit transfer in which the dealership assumes the credit. To go this route, you'll have to coordinate the transfer with the dealership. In either case, Form 8936 is still required.

What EVs qualify for the federal $7,500 tax credit?

Bought a new EV before 2023? You still might qualify.

If you purchased a new EV from a dealership before 2023 and never applied for the Clean Vehicle Credit, you might still have a chance. This category is divided into two time periods:

EVs purchased between August 17th, 2022 and December 31st, 2022

  • For EVs purchased in this period, the DOE provides a complete list of candidates here.
  • If your EV appears on the list, you should reach out to the dealership where you bought it for further information.
  • Not every EV on the list is necessarily eligible, since other factors like the date you put it into service and the final assembly location come into play.

EVs purchased before August 17th, 2022

  • EVs purchased before this date do not have the same requirements as those above, since the new rules took effect on August 17th, 2022.
  • The details for EVs purchased in this time period can be found on the DOE website here.

The Clean Vehicle Credit only works for the tax return of the same year you bought the car. In other words, you can't apply for it on your 2024 tax returns if you purchased your EV in 2022. Instead, you'll have to amend your tax return of the same year as your EV purchase in order to attach Form 8936 to the corresponding year.

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