Tennessee electric vehicle tax credits, rebates and incentives
As of January 1st, 2024, buyers are able to transfer the federal EV tax credit to a qualified dealer at the point of sale and effectively turn the credit into an immediate discount. See additional details at IRS.gov.
Use this tool to find Tennessee generally available and qualifying tax credits, incentives and rebates that may apply to your purchase or lease of an electric vehicle. You'll find the latest… federal, Tennessee, local municipality, utility and automaker-sponsored programs that can reduce the price of your next EV or PHEV. We’re constantly updating the list of available programs, so make sure to check back often for the latest opportunities.
97 results
Retail Cash
$12,500Maximum RebateRetail Bonus Cash (#11200). Eligible buyers may receive Retail Bonus Cash on select new vehicles. Incentive may be incompatible with certain finance types or other cash programs, based on individual program rules. Take new retail delivery from dealer stock by 07/08/2024. Residency restrictions apply. See dealer for qualifications and complete details.Customer Bonus Cash
$10,000Maximum RebateCustomers purchasing select Volkswagen models may be eligible for bonus cash incentive. See your Volkswagen retailer for complete details.Sales Event Offer
$10,000Maximum RebateSpring Purchase Allowance CANNOT be combined with Volvo Car Financial Services programs. Must take delivery of vehicle between May 1st 2024 and May 31st, 2024. See your participating Volvo Retailer for details.Clean Vehicle Offer
$7,500Maximum RebateNot available with special financing, lease and some other offers. See dealer for details.Clean Vehicle Offer
$7,500Maximum RebateNot available with special financing, lease and some other offers. See dealer for details.Clean Vehicle Offer
$7,500Maximum RebateEligible customers may receive rebate towards the purchase or finance on select vehicles. Residency restrictions apply.Customer Cash
$7,500Maximum RebateRetail customers may be eligible for cash incentive. Incentive may not be combined with KIA Motor Finance Lease or Special APR financing. Residency restrictions apply.Customer Cash
$7,500Maximum RebateRetail customers may be eligible for cash incentive. Incentive may not be combined with LFS Lease or Special APR financing. Residency restrictions apply.Federal Credit
$7,500Maximum RebateUnder the Inflation Reduction Act of 2022, the Internal Revenue Service (IRS) offers taxpayers a Clean Vehicle Tax Credit of $3,750 or $7,500 depending on model eligibility for the purchase of a new plug-in electric vehicle. Beginning January 1, 2024, Clean Vehicle Tax Credits may be initiated and approved at the point of sale at participating dealerships registered with the IRS. Dealers will be responsible for submitting Clean Vehicle Tax Credit information to the IRS. Buyers are advised to obtain a copy of an IRS "time of sale" report, confirming it was submitted successfully by the dealer. To be eligible:
- A vehicle must have undergone final assembly in North America (the United States and Puerto Rico, Canada, or Mexico).
- Critical mineral and battery component requirements determine credit amount.
- Maximum MSRP of $55,000 for cars and $80,000 for SUVs/trucks/vans.
- Income eligibility applies depending on modified adjusted gross income (AGI) and tax filing status.
To learn more, visit https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
Retail Cash
$7,500Maximum RebateGenesis Retail Bonus Cash for customer that purchase a new Genesis model. Not compatible with subvented lease or APR programs.UNKNOWN
$7,500Maximum RebateEligible customers may receive cash incentive. Cash incentive may be incompatible with certain finance types or other cash programs, based on individual program rules. Residency restrictions apply.Military Offer
$5,000Maximum RebateSpecial BMW Incentive offer is valid at any authorized BMW Center in the United States. Incentive offer is subject to change without prior notice. BMW of North America, LLC requires presentation of a photo ID, your BMW Manufacturer Certificate with a unique Customer ID, and Offer Code. One incentive per customer, per offer code, per calendar year for new BMW vehicles. Eligible military member must be the purchaser. See your authorized BMW Center for complete program details.Affiliations, Clubs or Groups Offer
$3,000Maximum RebateMembers of Costco may receive additional support on eligible vehicles purchased or leased.Conquest Offer
$3,000Maximum RebateCurrent owners/lessees of one of the qualifying vehicles (2010 model year or newer AUDI, BMW, FORD, GENESIS, LEXUS, LINCOLN, MERCEDES-BENZ, POLESTAR, RIVIAN, TESLA, VOLVO) are eligible to use this offer toward the purchase or lease of one of the new and unused models.. Trade-in Not Required. Cannot be combined with loyalty offers. Proof of qualifying vehicle required. See dealer for details.Customer Cash
$3,000Maximum RebateReceive a customer bonus when you purchase or lease a select, new Audi.* *Audi of America, Inc. will pay a $3,000 customer bonus when you purchase a new, unused 2024 e-tron GT through participating dealers from May 1, 2024 to June 3, 2024. Customer bonus applied toward MSRP and is not available for cash. May not be combined Puerto Rico Assistance Program. Offer not valid in Puerto Rico. See your local Audi dealer or, for general product information, call 1-800-FOR-AUDI. 2024 Audi of America, Inc.UNKNOWN
$3,000Maximum RebateRetail Bonus Cash (#11198). Eligible buyers may receive Retail Bonus Cash on select new vehicles. Incentive may be incompatible with certain finance types or other cash programs, based on individual program rules. Take new retail delivery from dealer stock by 07/08/2024. Residency restrictions apply. See dealer for qualifications and complete details.
2024 Hyundai IONIQ 5
$7,500Vehicle Rebates+ more qualifying rebates2023 Ford E-Transit Cargo Van
$7,500Vehicle Rebates+ more qualifying rebates2024 Genesis GV60
$7,500Vehicle Rebates+ more qualifying rebates2024 Hyundai IONIQ 6
$7,500Vehicle Rebates+ more qualifying rebates2024 Kia EV9
$7,500Vehicle Rebates+ more qualifying rebates2023 Kia Niro EV
$7,500Vehicle Rebates+ more qualifying rebates2024 Kia EV6
$7,500Vehicle Rebates+ more qualifying rebates2023 Polestar 2
$7,500Vehicle Rebates2024 Acura ZDX
$7,500Vehicle Rebates2023 Tesla Model 3
$7,500Vehicle Rebates2023 Tesla Model Y
$7,500Vehicle Rebates2024 Polestar 2
$7,500Vehicle Rebates2024 Audi e-tron GT
$3,000Vehicle Rebates+ more qualifying rebates2024 Tesla Model Y
$7,500Vehicle Rebates2024 Tesla Model 3
$7,500Vehicle Rebates
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Federal EV Tax Credits Overview
Shopping for an electric vehicle (EV) or a plug-in hybrid electric vehicle (PHEV)? According to the landmark Inflation Reduction Act of August 2022, you can get up to $7,500 in tax credits if you purchase an EV or a PHEV, but it very much depends on the make and model you're considering. We'll give you the highlights here and encourage you to visit our in-depth analysis of the Inflation Reduction Act for full details. Additional incentives may be provided at the state and local levels, but our purpose here is to summarize federal EV tax incentives, not state and local incentives.
Federal EV Tax Credit Incentive #1: North American Final Assembly
You can't get any EV tax credits or PHEV tax credits unless the vehicle was assembled in North America, full stop. In the short run, this leaves some automakers out in the cold, but the idea is to create a new incentive to build clean vehicles right here on our home turf. Notably, meeting this final assembly requirement doesn't automatically mean you get a tax credit -- it just gets your foot in the door. Provided that the vehicle is assembled in North America, it may qualify for federal tax credits if further conditions are met. Specifically, the maximum $7,500 federal EV tax credit is made up of two separate $3,750 credits, one targeting EV battery minerals and the other EV battery components.
Federal EV Tax Credit Incentive #2: Origin of Critical Battery Minerals ($3,750 Tax Credit)
As with vehicle assembly, the U.S. government also wants to move the sourcing of critical battery minerals closer to home, at least in terms of trade partnerships. To this end, increasing percentages of critical EV battery minerals must be sourced from the U.S. itself or a U.S. free-trade partner, starting with 40% for 2023. The minimum percentage escalates quickly to 80% by 2027. Unless the EV or PHEV you purchase meets this requirement, you won't have access to at least half of the $7,500 maximum federal EV tax credit.
Federal EV Tax Credit Incentive #3: Origin of Battery Components ($3,750 Tax Credit)
Moving back to the assembly side, the U.S. likewise wants to incentivize the production of battery components at home or in free-trade partner countries. To enable this half of the $7,500 maximum tax credit for 2023, at least 50% of your vehicle's battery components must have been produced in the U.S. or in countries that have free-trade agreements with the U.S. Note that the minimum threshold escalates steadily to a full 100% by 2029, whereas the previous requirement regarding battery minerals stops (for now) at 80% in 2027.
Federal EV Tax Credit Incentive #4: No Involvement by Blacklisted Countries After 2023
Here's another one that's just about getting your foot in the door. In a not-so-subtle shot at China, which jumped out to a big lead in the EV battery business, the U.S. government has stipulated that once the calendar year flips to 2024, the EV or PHEV you purchase won't qualify for federal EV tax credits if any battery components came from a "foreign entity of concern," a short list that includes China, Russia, Iran and North Korea. For 2025, the stipulation will extend to critical battery minerals. Here again we can expect some short-term pain for automakers as they pivot from dependence on Chinese suppliers, but the financial incentives pushing that pivot are strong.
Federal EV Tax Credit Incentive #5: Price Limits
We use the plural because it depends on the type of vehicle you're considering. If it's an SUV, van, or pickup truck, it can't cost more than $80,000 or else it's not eligible for federal EV tax credits. For all other vehicle types, the eligibility limit drops to $55,000. The point of this incentive is to stimulate production of relatively affordable EVs as opposed to ultra-luxury models.
Federal EV Tax Credit Incentive #6: Buyer Income Limits
Finally, there's the question of how much money the buyer makes. Clearly the government wants to incentivize EV purchases within the middle class, because if you file your taxes as an individual, you won't qualify for federal EV tax credits unless you have a modified gross adjusted income (MAGI) of less than $150,000. If you file as head of household, that limit increases to $225,000, while joint filers can have a combined MAGI of up to $300,000.
FAQ
EV Tax Credits Vehicle Eligibility
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