Here’s every electric vehicle that currently qualifies for the US federal tax credit in 2024
As sales of electric vehicles continue to grow in 2024, many new and prospective customers have questions about qualifying for a federal tax credit on electric vehicles. Whether your vehicle qualifies or not is a simple yes or no question, but the amount you may qualify for varies by household due to a number of different factors. Luckily, we have compiled everything you need to know about tax credits for your new or current electric vehicle into one place.
Table of contents
How does a federal tax credit work for my EV?
The idea in theory is quite simple, per the IRS – “You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed, but extended the terms for this credit for vehicles purchased between 2023 to 2032.
That said, you cannot simply go out and buy an electric vehicle and expect Uncle Sam to cut $7,500 off your taxes come April. In reality, the amount you qualify for is based on both your income tax as well as several specifications of the electric vehicle you purchase, including where it’s built. More on that below.
First, let’s take a second to truly understand how the Federal EV tax credit currently works.
How much is the federal tax credit?
First and foremost, it’s important to understand three little words the government slips in front of the $7,500 credit – “may” and “up to.” As in, you may qualify for up to $7,500 in federal tax credit for your electric vehicle. At first glance, this credit may sound like a simple flat rate, but that is unfortunately not the case.
For example, if you purchased a Tesla Model 3 and owed say, $3,500 in income tax for the year, then that is the federal tax credit you would receive. If you owed $10,000 in federal income tax, then you would qualify for the full $7,500 credit.
It’s important to note that any unused portion of the $7,500 is not available as a refund nor as a credit for next year’s taxes. Bummer.
Federal Tax Credits under the Inflation Reduction Act
The following terms were introduced by the Biden Administration in the summer of 2022 and went into effect on January 1, 2023:
- Federal tax credit for EVs will remain at $7,500
- The timeline to qualify is extended a decade from January 2023 to December 2032
- Tax credit cap for automakers after they hit 200,000 EVs sold is eliminated, making GM, Tesla, and Toyota once again eligible
- The language in the bill indicates that the tax credit could be implemented at the point of sale instead of on taxes at the end of the fiscal year
- That means you can get your credit up front at the dealer, but these terms may not kick in until 2024
- In order to get the full tax credit, the EV must be assembled in North America and…
- Two binary pieces separate the full $7,500 credit meaning the vehicle either qualifies for each piece of the credit or doesn’t
- $3,750 of the new credit is based upon the vehicle having at least 40% of its battery-critical minerals from the United States or countries with a free trade agreement with the United States. This is a list of countries with free trade agreements with the US.
- The other $3,750 of the new credit is based on at least 50% of the battery components of the vehicle coming from the United States or countries with a free trade agreement with the US
- Note – these battery requirements are now being enforced as April 18, 2023. More below.
- The 40% minerals requirement increases to 50% in 2024, 60% in 2025, 70% in 2026 and 80% in 2027
- The 50% battery components requirement increases to 60% in 2024, 70% in 2026, 80% in 2027, 90% in 2028 and 100% in 2029
- Beginning in 2025, any vehicle with battery minerals or components from a foreign entity of concern is excluded from the tax credit
- Qualifying EVs must also have a battery size of at least 7 kWh and a gross vehicle weight rating of less than 14,000 pounds
- A new federal tax credit of $4,000 for used EVs priced below $25k
- Subject to other requirements like lower annual income (see below)
- Revised credit applies to battery electric vehicles with an MSRP below $55,000
- Also includes zero-emission vans, SUVs, and trucks with MSRPs up to $80,000
- New credit also expands to commercial fleet customers
- Includes separate qualifications and limits
- The federal EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, $225,000 for heads of households, or $300,000 for joint filers
- The new credit will also continue to apply to Plug-in Hybrid EVs (PHEVs) as long as they meet the same requirements outlined above
Revamped used electric vehicle tax credit
Used EVs also got revised terms that now offer a credit equal to 30% percent of the sale price (up to $4,000). That should help consumers like yourselves get some change back in your pocket at the end of the fiscal year. As long as you stick to these terms as outlined by the IRS.
To qualify as a customer, you must:
- Be an individual who bought the vehicle for use and not for resale
- Not be the original owner
- Not be claimed as a dependent on another person’s tax return
- Not have claimed another used clean vehicle credit in the three years before the EV purchase date
- Modified adjusted gross income must not exceed $75k for individuals, $112,500 for heads of households, and $150k for joint returns
For the used EV to qualify for federal tax credits, it must:
- Have a sale price of $25,000 or less
- Have a model year at least two years earlier than the calendar year when you buy it
- For example, a vehicle purchased in 2023 would need a model year of 2021 or older
- Not have already been transferred after August 16, 2022, to a qualified buyer
- Have a gross vehicle weight rating of less than 14,000 pounds
- Be an eligible FCV or plug-in EV with a battery capacity of at least 7 kilowatt hours (kWh)
- Be for use primarily in the United States
- You buy the vehicle from a dealer
- For qualified used EVs, the dealer reports the required information to you at the time of sale and to the IRS
- Purchaser must be an individual (no businesses) to qualify for used credit
- A used vehicle qualifies for tax credit only once in its lifetime
The IRS’ latest electric vehicle tax credit guidance
In October 2023, the IRS released updated guidance on federal tax credits for EV purchases in the US that now allow for point-of-sale federal tax credits rather than having to wait until you file to get your money back, beginning January 1, 2024. Per the IRS:
The Internal Revenue Service issued proposed regulations, Revenue Procedure 2023-33 (PDF) and frequently asked questions today for the transfer of new and previously owned clean vehicle credits from the taxpayer to an eligible entity for vehicles placed in service after Dec. 31, 2023.
This “transfer” is essentially the ability of a new EV buyer to give the tax credit to the dealer selling them their shiny new EV. In exchange, the dealer can give the equivalent “in cash or in the form of a partial payment or down payment.”
However, all the same eligibility criteria still apply even with a transfer, including the buyer having a federal tax burden.
The buyer must give the dealer all their tax information, which will then be submitted to the IRS. The dealer is not required to verify the information, and therefore, the disclosure falls on the buyer. All the other previous vehicle requirements, like MSRP limits, and for the buyers, like income limit requirements, apply here.
The only requirement that this update allows you to avoid is your tax burden. If, for some reason, you can afford to buy a new car and yet you happen to have a tax burden smaller than the full amount of tax credit you are eligible for, the IRS says that it won’t “recapture” the difference.
Vehicles that qualify for federal tax credits (January 2024)
Battery Electric Vehicles (BEVs)
| Make and Model | MSRP Limit | Tax Credit Amount |
| CHEVROLET (GM) | ||
| Bolt EUV (2022-2023) | $55,000 | Up to $7,500 |
| Bolt EV (2022-2023) | $55,000 | Up to $7,500 |
| FORD | ||
| F-150 Lightning Standard Battery (2022-2024) | $80,000 | Up to $7,500 |
| F-150 Lightning Extended Battery (2022-2024) | $80,000 | Up to $7,500 |
| RIVIAN | ||
| R1T Dual Motor Large Pack (2022-2024) | $80,000 | Up to $3,750 |
| R1T Dual Motor Max Pack (2022-2024) | $80,000 | Up to $3,750 |
| R1T Quad Motor Large Pack (2022-2024) | $80,000 | Up to $3,750 |
| R1S Dual Motor Large Pack (2022-2024) | $80,000 | Up to $3,750 |
| R1S Quad Motor Large Pack (2022-2024) | $80,000 | Up to $3,750 |
| TESLA | ||
| Model 3 Performance (2023-2024) | $55,000 | Up to $7,500 |
| Model X Long Range (2023-2024) | $80,000 | Up to $7,500 |
| Model Y Rear Wheel Drive (2024) | $80,000 | Up to $7,500 |
| Model Y All Wheel Drive (2023-2024) | $80,000 | Up to $7,500 |
| Model Y Performance (2023-2024) | $80,000 | Up to $7,500 |
Plug-in Hybrid Electric Vehicles (PHEVs) that currently qualify
| Make and Model | MSRP Limit | Full Tax Credit |
| CHRYSLER | ||
| Pacifica Plug-in Hybrid (2022-2024) | $80,000 | Up to $7,500 |
| FORD | ||
| Escape Plug-in Hybrid (2022-2024) | $80,000 | Up to $3,750 |
| JEEP | ||
| Grand Cherokee 4xe (2022-2024) | $80,000 | Up to $3,750 |
| Wrangler 4xe (2022-2024) | $80,000 | Up to $3,750 |
| LINCOLN | ||
| Corsair Grand Touring (2022-2024) | $80,000 | Up to $3,750 |
Find out where an EV is assembled using its VIN
The US Department of Energy offers a VIN decoder tool to confirm where a given EV is assembled. Check it out here.
Our complete breakdown of state tax incentives, sorted by state
In addition to any federal credit you may or may not qualify for, there are a number of clean transportation laws, regulations, and funding opportunities available at the state level.
We’ve compiled every state rebate, tax credit, and exemption for you and sorted it by state. Whether it’s a purchase or lease of a new or used EV or the purchase and installation of an EV charger, you could get money back, depending upon where you live.
Here are all those tax credits, rebates, and exemptions sorted by state.
Electric Vehicle (EV) Tax Credit FAQ
At the federal level, the tax credits for EVs (electric cars, vans, trucks, etc) operate as money back at the end of the fiscal year you purchased or leased your vehicles based on a number of factors.
The awarded credit is up to $7,500 per vehicle, but how much you may get back will depend on your annual income, whether you are filing with someone else like a spouse, and what electric vehicle you purchased.
For example, if you purchased a Ford F-150 Lightning and owed $3,500 in income tax this year, then that is the federal tax credit you would receive. If you owed $10,000 in federal income tax, then you could qualify for the full $7,500 credit.
It’s important to note that any unused portion of the $7,500 is not available as a refund nor as a credit for next year’s taxes.
You may also be able to receive money back right away as a point-of-sale credit, but those terms probably won’t kick in until 2024 at the earliest.
As things currently stand, there is a lot up in the air right now. The first table above details all of the electric vehicles that qualify under the terms of the Inflation Reduction Act, including battery guidance. Be sure to check the date at the bottom of each table above to see when it was most recently updated.
As previously mentioned, qualifying terms for electric vehicles became more strict at the start of 2023, and EVs and their battery components must be assembled in North America to qualify.
As you can see above, significantly fewer electric vehicles qualify under the new terms, but as time goes on, more and more automakers will adapt their production strategies to operate within North America and start selling vehicles that qualify.
American companies like Ford, GM, and Tesla already have EVs that qualify to some extent, but others are sure to follow. We will continually update the list above as we learn more.
Excellent question. Since traditional hybrid vehicles rely primarily on combustion and do not use a plug to charge, they do not qualify for tax credits at the federal level. Credits apply to plug-in electric vehicles which include plug-in hybrid EVs and battery electric vehicles (BEVs).
Yes! Under revised terms in the Inflation Reduction Act. Used EVs will now qualify in addition to new vehicles as previously stated.
As of January 1, 2023, qualifying used EVs priced below $25,000 can qualify for up to $4,000 in federal tax credits. There are some terms to note, however:
– Used vehicle qualifies for tax credit only once in its lifetime.
– Purchaser must be an individual (no businesses) to qualify for the used vehicle credit.
– Purchaser may only claim one used vehicle credit per three years.
– Used vehicle must be at least two model years old at the time of sale.
– The original use of the vehicle must have occurred with an individual other than the one claiming the used tax credit.
– Used vehicle must be purchased from a dealer.
– Gross income cap of $75k for individuals, $112,500 for heads of households, and $150k for joint returns.
– Credit may be applied at the time of sale by the dealer
Yes.
Under the new terms in the Inflation Reduction Act, the MSRP of electric vehicles must be $80,000 or less for SUVs, vans, and trucks. MSRPs for all other electric vehicles must be $55,000 or less.
Modified adjusted gross income limits are $150,000 for individuals, $225,000 for heads of households, and $300,000 for joint returns. Any reported annual income below these thresholds should qualify you for some level of tax credit, as long as your new purchase is a qualifying electric vehicle.
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The California Air Resource Board (CARB) has withdrawn its request to enact the proposed Advanced Clean Fleets rule, which required fleets that are “well-suited for electrification” to reduce emissions through the phase-in of Zero-Emission Vehicles (ZEVs) and the banning of commercial diesel sales after 2035.
The state of California submitted its Advanced Clean Fleets (ACF) request to the EPA, which would have required trucking fleets in the state to transition to zero-emission vehicles beginning last year, in November of 2023, spurring a number of drayage fleets and port operators to accelerate their adoption of electric trucks and encouraging manufacturers to route the bulk of their BEV manufacturing capacity to California.
As the sun sets on the environmentally friendly Biden Administration, however, CARB is backing away from a fight with the incoming Trump Administration to enforce its state’s rights to enact emissions standards that are more strict than the federal regulations.
“Frankly, given that the Trump administration has not been publicly supportive of some of the strategies that we have deployed in these regulations, we thought it would be prudent to pull back and consider our options,” CARB chair Liane Randolph said in an interview. “The withdrawal is an important step given the uncertainty presented by the incoming administration that previously attacked California’s programs to protect public health and the climate and has said will continue to oppose those programs.”
The EPA has acknowledged the withdrawal of the state’s waiver request, which effectively delays implementation of CARB’s ACF rule for at least four years, contingent on the state’s maintaining its beliefe that it requires a waiver to enact a regulation that isn’t strictly an emissions standard. California governor Gavin Newsom, meanwhile, intends to continue to push for ZEV adoption in the state with a number of state-level incentives to promote further decarbonization.
Here’s hoping the BEVs and ZEVs have better luck next round.
Electrek’s Take
While some may celebrate the delay of the Advanced Clean Fleets rule, their celebrations will undoubtedly prove to be myopic and short-lived. The reality is that America is no longer the world leader in technology or transportation that backward organizations like the American Trucking Association believe it to be, and the fact is that delaying a transition to cleaner, more efficient technology will only put the US further behind its economic rivals in Asia and the Middle East.
Even before this Pyrrhic victory for American truck brands that have been slow to push BEVs into production, demand for diesel was at a generational low, and companies like Volvo, Renault, and Mercedes-Benz have been logging millions of electric miles on their deployed trucking fleets.
All of which is to say: if you thought it was going to be hard for American brands to catch up before, it’s going to be even harder now.
SOURCES | IMAGES: ACT News, Overdrive; Reuters.
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In an official announcement released at 8:15PM last night, Walmart-backed electric van company Canoo filed a voluntary petition for relief under Chapter 7 of the US Bankruptcy Code and will cease operations immediately.
Despite some early signs of promise with pilot programs at the USPS, US Army, and even a highly-publicized collaboration with NASA, the electric van company either failed to find a place in the market, failed to get enough vehicles produced to meet demand, or just failed to deliver in general. Regardless, the chapter 7 filing seems to be the end of the road for Canoo.
“We would like to thank the company’s employees for their dedication and hard work,” said Tony Aquila, Canoo CEO and one of the company’s largest investors (according to the press release). “We know that you believed in our company as we did. We are truly disappointed that things turned out as they did. We would also like to thank NASA, the Department of Defense, The United States Postal Service (‘USPS’), the State of Oklahoma and Walmart for their belief in our products and our company. This means a lot to everyone in the company.”
As a result of the chapter 7 filing, Canoo will cease operations effective immediately, 8:15PM on 17JAN2025. The next step in the company’s dissolution will see a court-appointed trustee manage the liquidation of the company’s remaining assets.
Electrek’s Take
Rumors fueled by outspoken former employees of Canoo began circling late last year, with furloughed employees urging Oklahoma state leaders to “hold the electric vehicle company accountable” after it shuttered the OK production line that had received more than $100 million in state incentives.
The same employee claims that the company was being wildly mismanaged, and that what few Canoo vehicles the company said it had built in the Oklahoma plant were actually built in Texas, and that no vehicles were actually ever built in OK. “Nothing was functioning,” the unnamed employee said, speaking to local news channel KFOR. “There was no, there was not one robotics line that actually worked to fabricate a part.”
You could argue that the employees should also be held accountable for happily collecting paychecks without actually producing anything this whole time, but that’s a conversation for another day. For now, I’ll be mourning the loss of what could have been a fun little domestic off-roader, and hoping Canoo’s employees find a soft landing and better jobs elsewhere.
SOURCES | IMAGES: Canoo; KFOR.
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The US Department of Energy (DOE) today announced $1.2 billion in financing to replace Puerto Rico’s fossil fuel plants with solar and battery storage through 2032.
The DOE’s Loan Programs Office announced two conditional commitments and one loan closing to power producers in Puerto Rico. Each supports a project contracted with the Puerto Rico Electric Power Authority. The announcements include:
- The closing of a $584.5 million loan guarantee to subsidiaries of Convergent Energy to finance a 100 MW solar farm with a 55 MW (55 MWh) battery energy storage system (BESS) in the municipality of Coamo and BESS installations in the municipalities of Caguas (25MW/100MWh), Peñuelas (100MW/400MWh), and Ponce (up to 100MW/400MWh)
- A conditional commitment for a loan guarantee of up to $133.6 million to a subsidiary of Infinigen for a 32.1 MW solar farm with an integrated 14.45 MW (4.76 MWh) BESS, and a co-located standalone 50 MW (200 MWh) BESS expansion in the municipality of Yabucoa
- A conditional commitment for a loan guarantee of up to $489.4 million to a subsidiary of Pattern Energy for three stand-alone BESS in the municipalities of Arecibo (50 MW/200 MWh), and Santa Isabel (50 MW /200 MWh and 80 MW/320 MW), and a 70 MW solar farm with an integrated BESS in the municipality of Arecibo.
If all are finalized, these projects would more than double LPO’s support for utility-scale solar generation and battery energy storage in Puerto Rico.
LPO provides low-cost financing and a rigorous due diligence process, making it a valuable resource for Puerto Rico as it works to rebuild an affordable, reliable, and clean energy system. As a result of reliance on imported fuel, the persistent threat of tropical storms, and underinvested infrastructure, Puerto Ricans today face average energy costs that are twice the US average – all while consuming only one-quarter of the energy of the US per capita.
LPO’s initial loan to a power producer in Puerto Rico, Project Marahu, closed in October 2024, and when complete will add more than 200 MW of solar and up to 285 MW of stand-alone energy storage to Puerto Rico’s grid.
Through its September 2023 partial loan guarantee to Project Hestia, LPO also supports virtual power plant (VPP)-ready rooftop solar and battery storage installations in Puerto Rico. As a nationwide project, Hestia’s sponsor is committed to at least 20% of installations under Project Hestia going to homeowners in Puerto Rico.
As part of its procurement plan, Puerto Rico Electric Power Authority seeks to install 1,500 MW of battery storage and requires a minimum capacity of storage to be co-located with each utility-scale solar project. Energy storage systems currently online in Puerto Rico are being dispatched every day.
When including Marahu, LPO’s closed and conditionally committed financing supports over 100% of the capacity Puerto Rico Electric Power Authority aimed to procure under its initial request for energy storage project proposals, the first of six.
Read more: Cleantech investments to top fossil fuels for the first time in 2025
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
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