- The Department of Energy released a list of new all-electric and plug-in hybrids that qualify for tax credits.
- Only a handful of vehicles are now eligible, provided that buyers also meet certain requirements.
- Changes go into effect on April 18, 2023.
Here Are All the EVs and Plug-Ins That Still Qualify for Tax Credits
List of eligible new vehicles is significantly shorter
The Inflation Reduction Act of 2022 changed which new fully electric and plug-in hybrid vehicles were eligible for federal tax credits starting on April 18, 2023. Myriad stipulations made it difficult to determine which vehicles were affected, but now, one day before the bill goes into effect, the U.S. Department of Energy has released a list of which new vehicles still qualify for tax credits when purchased on or after April 18.
Vehicles Eligible for Tax Credits as of April 18, 2023
Applicable MSRP Limit
|2024||Chevrolet Blazer EV||$7,500||$80,000|
|2022-2023||Chevrolet Bolt EUV||$7,500||$55,000|
|2024||Chevrolet Equinox EV||$7,500||$80,000|
|2024||Chevrolet Silverado EV||$7,500||$80,000|
|2022-2023||Chrysler Pacifica PHEV||$7,500||$80,000|
|2022-2023||Ford Escape PHEV||$3,750||$80,000|
|2022-2023||Ford F-150 Lightning||$7,500||$80,000|
|2022-2023||Ford Mustang Mach-E||$3,750||$80,000|
|2022-2023||Jeep Grand Cherokee 4xe||$3,750||$80,000|
|2022-2023||Jeep Wrangler 4xe||$3,750||$80,000|
|2022-2023||Lincoln Aviator Grand Touring||$7,500||$80,000|
|2022-2023||Lincoln Corsair Grand Touring||$3,750||$80,000|
|2022-2023||Tesla Model 3 Performance||$7,500||$55,000|
|2022-2023||Tesla Model 3 Standard Range RWD||$3,750||$55,000|
|2022-2023||Tesla Model Y||$7,500||$80,000|
The DoE notes that "the availability of the credit will depend on several factors, including the vehicle's MSRP, its final assembly location, battery component and/or critical minerals sourcing, and your modified adjusted gross income (AGI)."
While most of these factors determine whether the vehicle is eligible for tax credits in the first place, the individual buyer must also qualify. Per the DoE, buyers must buy the vehicle for their own use and primarily drive it in the U.S. In addition, your AGI must not exceed $300,000 for couples filing jointly, $225,000 for heads of households, or $150,000 for all other filers. The MSRP must also fall below the maximum threshold set by the bill (note that destination and handling fees, as well as any dealer add-on accessories, taxes and other fees are not included in the MSRP).
All of these rules apply to buyers or leasees of new electric vehicles. There are also tax credits available for used EVs and PHEVs — a full list and qualifying information are available on the DoE's website.
There also may be a loophole for shoppers looking to lease (rather than buy) an EV or PHEV that may not be on this list. For full details, check out our article about the ins and outs of electric vehicle tax credits.
There aren't many all-electric or plug-in hybrid vehicles that still qualify for tax credits. But if you're in the market for one of these EVs or PHEVs, your savings could be substantial.