The List of PHEVs & EVs Eligible for the New Federal EV Tax Credit has Been Updated
Those who are interested in purchasing an electric vehicle (and getting a tax credit for doing so) in the near future will want to pay close attention. The IRS has released a revised list of electric vehicles that are eligible for the federal Clean Vehicle Tax Credit, that were placed in service in 2023 or 2024, after taking the new battery minerals and components sourcing requirement provisions included in the Inflation Reduction Act into account. As I noted in my Clean Vehicle Tax Credit overview article, there have been a number of revisions to to the list of EVs and PHEVs that are eligible for partial and full federal tax credits.
As predicted, the new materials sourcing provisions, along with the ‘manufactured in North America’ eligibility requirement added last fall, have cut down the number of electric vehicles that are eligible for the full $7,500 tax credit amount. While this will limit the appeal of purchasing an EV not on this list in the near term, the long-term goal of these provisions was to incentivize more vehicle manufacturers to move their vehicle and battery manufacturing to the U.S. To that end, we’ve already seen announcements from a few manufacturers that they will be adding battery and EV capacity in the U.S. in the coming years.
Hyundai and Kia lost eligibility on their current EV lineup after the ‘manufactured in North America’ requirement was implemented in late 2022 Additionally, a few high-end electric vehicles also lost their eligibility after new MSRP caps were added to limit tax incentives for luxury vehicles ($55,000 for cars and $80,000 for SUVs and trucks).
Separate from the vehicles, a new income cap was also added to prevent high-income earners from claiming the tax credit:
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
If your income is/was below those thresholds in one of either the current tax year or the previous year, you may still be eligible for the tax credit.
Among the vehicles still eligible for the full tax credit are the Chevy Bolt and Chevy Bolt EUV, with both ranking among the 10 cheapest electric vehicles and 10 cheapest new vehicles (of any engine type), and even 10 most-efficient vehicles sold in the U.S. vehicle market. The Bolt and Bolt EUV will be taking a temporary pause on production in 2024, but a 2nd generation Bolt EUV will return with GM’s Ultium batteries in 2025. You may still be able to find a 2023 Bolt at dealerships. Chevy’s upcoming Blazer, Equinox, and Silverado EVs are expected to be eligible for at least a partial tax credit in 2024.
Let’s take a look at the EVs and PHEVs that were eligible for a Clean Vehicle Tax Credit prior to the new battery minerals and components requirement went into effect, as well as after, for vehicles purchased and placed into service in 2023 and 2024. Note that the IRS does revise eligible vehicles throughout the year. Always check with the dealer to confirm Clean Vehicle Tax Credit eligibility and amount before purchasing.
Electric Vehicles (EVs) Eligible for a Clean Vehicle Tax Credit – Placed in Service from 1/1/23 through 4/17/23
The following EVs that were placed in service in 2023 from January 1, 2023 through April 17, 2023 were eligible for a Clean Vehicle Tax Credit:
| Manufacturer: | Model: | Model Year: | Vehicle Type: | Credit Amount: | MSRP Limit: | Assembled in North America? |
|---|---|---|---|---|---|---|
| Cadillac | Lyriq | 2022-2024 | EV | $7,500 | $80,000 | Yes |
| Chevrolet | Bolt | 2022-2023 | EV | $7,500 | $55,000 | Yes |
| Chevrolet | Bolt EUV | 2022-2023 | EV | $7,500 | $55,000 | Yes |
| Chevrolet | Silverado EV | 2024 | EV | $7,500 | $80,000 | Yes |
| Ford | E-Transit | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Ford | F-150 Lightning | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Ford | Mustang Mach-E | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Genesis | Electrified GV70 | 2023-2024 | EV | $7,500 | $80,000 | Yes |
| Mercedes-Benz | EQE 350 SUV | 2023 | EV | $7,500 | $80,000 | Yes |
| Nissan | Leaf S | 2021-2023 | EV | $7,500 | $55,000 | Yes |
| Nissan | Leaf S Plus | 2021-2022 | EV | $7,500 | $55,000 | Yes |
| Nissan | Leaf SL Plus | 2021-2022 | EV | $7,500 | $55,000 | Yes |
| Nissan | Leaf SV | 2021-2022 | EV | $7,500 | $55,000 | Yes |
| Nissan | Leaf SV Plus | 2021-2023 | EV | $7,500 | $55,000 | Yes |
| Rivian | R1S | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Rivian | R1T | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Tesla | Model 3 Long Range | 2022-2023 | EV | $7,500 | $55,000 | Yes |
| Tesla | Model 3 Performance | 2022-2023 | EV | $7,500 | $55,000 | Yes |
| Tesla | Model 3 RWD | 2022-2023 | EV | $7,500 | $55,000 | Yes |
| Tesla | Model Y All-Wheel Drive | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Tesla | Model Y Long Range | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Tesla | Model Y Performance | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 AWD Pro | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 AWD Pro S | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 Pro | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 Pro S | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 S | 2023 | EV | $7,500 | $80,000 | Yes |
Last updated 1/1/24 to reflect the IRS’s 6/15/23 revisions
Plugin Hybrid Electric Vehicles (PHEVs) Eligible for a Clean Vehicle Tax Credit – Placed in Service from 1-1-23 through 4-17-23
The following plugin hybrid electric vehicles (PHEVs) that were placed in service in 2023 from January 1, 2023 through April 17, 2023 were eligible for a Clean Vehicle Tax Credit:
| Manufacturer: | Model: | Model Year: | Vehicle Type: | Credit Amount: | MSRP Limit: | Assembled in North America? |
|---|---|---|---|---|---|---|
| Audi | Q5 TFSI e Quattro (PHEV) | 2023 | PHEV | $7,500 | $80,000 | Yes |
| BMW | 330e | 2021-2023 | PHEV | $5,836 | $55,000 | check VIN for country |
| BMW | X5 xDrive45e | 2021-2023 | PHEV | $7,500 | $80,000 | Yes |
| BMW | X5 xDrive50e | 2024 | PHEV | $7,500 | $80,000 | Yes |
| Chrysler | Pacifica PHEV | 2022-2023 | PHEV | $7,500 | $80,000 | Yes |
| Ford | Escape Plug-In Hybrid | 2022 | PHEV | $6,843 | $80,000 | Yes |
| Ford | Escape Plug-In Hybrid | 2023 | PHEV | $6,885 | $80,000 | Yes |
| Jeep | Grand Cherokee 4xe | 2022-2023 | PHEV | $7,500 | $80,000 | Yes |
| Jeep | Wrangler 4xe | 2022-2023 | PHEV | $7,500 | $80,000 | Yes |
| Lincoln | Aviator Grand Touring | 2022-2023 | PHEV | $6,534 | $80,000 | Yes |
| Lincoln | Corsair Grand Touring | 2022 | PHEV | $6,843 | $80,000 | Yes |
| Lincoln | Corsair Grand Touring | 2023 | PHEV | $6,885 | $80,000 | Yes |
| Volvo | S60 (PHEV) | 2022 | PHEV | $5,419 | $55,000 | Yes |
| Volvo | S60 Extended Range | 2022 | PHEV | $7,500 | $55,000 | Yes |
| Volvo | S60 T8 Recharge (Extended Range) | 2023 | PHEV | $7,500 | $55,000 | Yes |
Last updated 1/1/24 to reflect the IRS’s 6/15/23 revisions
Electric Vehicles (EVs) Eligible for a Clean Vehicle Tax Credit – Placed in Service from 4/18/23 through 12/31/23
Post IRS guidance on the Inflation Reduction Act battery minerals and components sourcing requirements, the following EVs are eligible for a Clean Vehicle Tax Credit in 2023 if they were purchased and placed into service from April 18, 2023 through December 31, 2023:
| Manufacturer: | Model: | Model Year: | Vehicle Type: | Credit Amount: | MSRP Limit: | Assembled in North America? |
|---|---|---|---|---|---|---|
| Cadillac | LYRIQ | 2023-2024 | EV | $7,500 | $80,000 | Yes |
| Chevrolet | Blazer | 2024 | EV | $7,500 | $80,000 | Yes |
| Chevrolet | Bolt | 2022-2023 | EV | $7,500 | $55,000 | Yes |
| Chevrolet | Bolt EUV | 2022-2023 | EV | $7,500 | $55,000 | Yes |
| Chevrolet | Equinox | 2024 | EV | $7,500 | $80,000 | Yes |
| Chevrolet | Silverado | 2024 | EV | $7,500 | $80,000 | Yes |
| Ford | E-Transit | 2022-2023 | EV | $3,750 | $80,000 | Yes |
| Ford | F-150 Lightning (Extended Range Battery) | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Ford | F-150 Lightning (Standard Range Battery) | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Ford | Mustang Mach-E (Extended Range Battery) | 2022-2023 | EV | $3,750 | $80,000 | Yes |
| Ford | Mustang Mach-E (Standard Range Battery) | 2022-2023 | EV | $3,750 | $80,000 | Yes |
| Nissan | LEAF S | 2024 | EV | $3,750 | $55,000 | Yes |
| Nissan | LEAF SV PLUS | 2024 | EV | $3,750 | $55,000 | Yes |
| Rivian | R1S Dual Large | 2023-2024 | EV | $3,750 | $80,000 | Yes |
| Rivian | R1S Quad Large | 2023-2024 | EV | $3,750 | $80,000 | Yes |
| Rivian | R1T Dual Large | 2023-2024 | EV | $3,750 | $80,000 | Yes |
| Rivian | R1T Dual Max | 2023-2024 | EV | $3,750 | $80,000 | Yes |
| Rivian | R1T Quad Large | 2023-2024 | EV | $3,750 | $80,000 | Yes |
| Tesla | Cybertruck All-Wheel Drive | 2024 | EV | $7,500 | $80,000 | Yes |
| Tesla | Model 3 Long Range All-Wheel Drive | 2023 | EV | $7,500 | $80,000 | Yes |
| Tesla | Model 3 Performance | 2022-2023 | EV | $7,500 | $55,000 | Yes |
| Tesla | Model 3 Standard Range Rear Wheel Drive | 2022-2023 | EV | $3,750 | $55,000 | Yes |
| Tesla | Model X Long Range | 2023 | EV | $7,500 | $80,000 | Yes |
| Tesla | Model Y All-Wheel Drive | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Tesla | Model Y Long Range All-Wheel Drive | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Tesla | Model Y Performance | 2022-2023 | EV | $7,500 | $80,000 | Yes |
| Tesla | Model Y Rear Wheel Drive | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 AWD PRO | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 AWD PRO S | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 AWD PRO S PLUS | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 PRO | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 PRO S | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 PRO S PLUS | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 S | 2023 | EV | $7,500 | $80,000 | Yes |
| Volkswagen | ID.4 STANDARD | 2023 | EV | $7,500 | $80,000 | Yes |
Last updated 1/1/24 to reflect the IRS’s 12/30/23 revisions
Plugin Hybrid Electric Vehicles (PHEVs) Eligible for a Clean Vehicle Tax Credit – Placed in Service from 4/18/23 through 12/31/23
Post IRS guidance on Inflation Reduction Act battery minerals and components sourcing requirements, the following plugin hybrid electric vehicles (PHEVs) are eligible for a Clean Vehicle Tax Credit in 2023 if they were purchased and placed into service from April 18, 2023 through December 31, 2023:. Note that battery capacity in PHEVs impacts the amount of the tax credit that the vehicles are eligible for – and not every vehicle will be eligible for the full $7,500 tax credit.
| Manufacturer: | Model: | Model Year: | Vehicle Type: | Credit Amount: | MSRP Limit: | Assembled in North America? |
|---|---|---|---|---|---|---|
| Audi | Q5 PHEV 55 TFSI e quattro | 2023-2024 | PHEV | $3,750 | $80,000 | Yes |
| BMW | X5 xDrive50e | 2024 | PHEV | $3,750 | $80,000 | Yes |
| Chrysler | Pacifica PHEV | 2022-2023 | PHEV | $7,500 | $80,000 | Yes |
| Ford | Escape Plug-in Hybrid | 2022-2023 | PHEV | $3,750 | $80,000 | Yes |
| Jeep | Grand Cherokee PHEV 4xe | 2022-2023 | PHEV | $3,750 | $80,000 | Yes |
| Jeep | Wrangler PHEV 4xe | 2022-2023 | PHEV | $3,750 | $80,000 | Yes |
| Lincoln | Aviator Grand Touring | 2022-2023 | PHEV | $7,500 | $80,000 | Yes |
| Lincoln | Corsair Grand Touring | 2022-2023 | PHEV | $3,750 | $80,000 | Yes |
Last updated 1/1/24 to reflect the IRS’s 12/30/23 revisions
Electric Vehicles (EVs) Eligible for a Clean Vehicle Tax Credit – Placed in Service from 1/1/24 through 12/31/24
Post IRS guidance on the Inflation Reduction Act battery minerals and components sourcing requirements, the following EVs are eligible for a Clean Vehicle Tax Credit in 2024 if they were purchased and placed into service from January 1, 2024 through December 31, 2024:
| Manufacturer: | Model: | Model Year: | Vehicle Type: | Credit Amount: | MSRP Limit: | Assembled in North America? |
|---|---|---|---|---|---|---|
| Chevrolet | Bolt | 2022-2023 | EV | $7,500 | $55,000 | check VIN for country |
| Chevrolet | Bolt EUV | 2022-2023 | EV | $7,500 | $55,000 | check VIN for country |
| Ford | F-150 Lightning (Extended Range Battery) | 2022-2024 | EV | $7,500 | $80,000 | check VIN for country |
| Ford | F-150 Lightning (Standard Range Battery) | 2022-2024 | EV | $7,500 | $80,000 | check VIN for country |
| Rivian | R1S Dual Large | 2023-2024 | EV | $3,750 | $80,000 | check VIN for country |
| Rivian | R1S Quad Large | 2023-2024 | EV | $3,750 | $80,000 | check VIN for country |
| Rivian | R1T Dual Large | 2023-2024 | EV | $3,750 | $80,000 | check VIN for country |
| Rivian | R1T Dual Max | 2023-2024 | EV | $3,750 | $80,000 | check VIN for country |
| Rivian | R1T Quad Large | 2023-2024 | EV | $3,750 | $80,000 | check VIN for country |
| Tesla | Model 3 Performance | 2022-2023 | EV | $7,500 | $55,000 | check VIN for country |
| Tesla | Model X Long Range | 2023 | EV | $7,500 | $80,000 | check VIN for country |
| Tesla | Model Y All-Wheel Drive | 2022-2023 | EV | $7,500 | $80,000 | check VIN for country |
| Tesla | Model Y Performance | 2022-2023 | EV | $7,500 | $80,000 | check VIN for country |
| Tesla | Model Y Rear Wheel Drive | 2023 | EV | $7,500 | $80,000 | check VIN for country |
| Volkswagen | ID.4 AWD PRO | 2023–2024 | EV | $7,500 | $80,000 | check VIN for country |
| Volkswagen | ID.4 AWD PRO S | 2023–2024 | EV | $7,500 | $80,000 | check VIN for country |
| Volkswagen | ID.4 AWD PRO S PLUS | 2023–2024 | EV | $7,500 | $80,000 | check VIN for country |
| Volkswagen | ID.4 PRO | 2023–2024 | EV | $7,500 | $80,000 | check VIN for country |
| Volkswagen | ID.4 PRO S | 2023–2024 | EV | $7,500 | $80,000 | check VIN for country |
| Volkswagen | ID.4 PRO S PLUS | 2023–2024 | EV | $7,500 | $80,000 | check VIN for country |
| Volkswagen | ID.4 S | 2023–2024 | EV | $7,500 | $80,000 | check VIN for country |
| Volkswagen | ID.4 STANDARD | 2023–2024 | EV | $7,500 | $80,000 | check VIN for country |
Last updated 1/28/24 to reflect the IRS’s 1/24/24 revisions
Plugin Hybrid Electric Vehicles (PHEVs) Eligible for a Clean Vehicle Tax Credit – Placed in Service from 1/1/24 through 12/31/24
Post IRS guidance on Inflation Reduction Act battery minerals and components sourcing requirements, the following plugin hybrid electric vehicles (PHEVs) are eligible for a Clean Vehicle Tax Credit in 2024 if they were purchased and placed into service from January 1, 2024 through December 31, 2024:. Note that battery capacity in PHEVs impacts the amount of the tax credit that the vehicles are eligible for – and not every vehicle will be eligible for the full $7,500 tax credit.
| Manufacturer: | Model: | Model Year: | Vehicle Type: | Credit Amount: | MSRP Limit: | Assembled in North America? |
|---|---|---|---|---|---|---|
| Chrysler | Pacifica PHEV | 2022-2024 | PHEV | $7,500 | $80,000 | check VIN for country |
| Ford | Escape Plug-in Hybrid | 2022-2024 | PHEV | $3,750 | $80,000 | check VIN for country |
| Jeep | Grand Cherokee PHEV 4xe | 2022-2024 | PHEV | $3,750 | $80,000 | check VIN for country |
| Jeep | Wrangler PHEV 4xe | 2022-2024 | PHEV | $3,750 | $80,000 | check VIN for country |
| Lincoln | Corsair Grand Touring | 2022-2024 | PHEV | $3,750 | $80,000 | check VIN for country |
Last updated 1/28/24 to reflect the IRS’s 1/24/24 revisions
Used Clean Vehicle Credit for Used EVs, PHEVs, and FCEVs
If you are in the market to purchase a vehicle, but aren’t interested in any of the eligible EVs listed above, you may be eligible for a Clean Vehicle Tax Credit for a used EV, up to $4,000 or 30% of the sale price (whichever is less). If you buy a qualified previously owned electric vehicle (EV), plug-in hybrid (PHEV), or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may qualify for a used EV tax credit.
What is the Amount of the Used Clean Vehicle Tax Credit?
- $4,000, or
- the amount equal to 30% of the sale price (whichever is less)
What Used Clean Vehicles are Eligible for a Tax Credit? (Requirements)
To qualify, a vehicle must meet all of these requirements:
- Have a sale price of $25,000 or less
- Have a model year at least 2 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 least 7 kilowatt hours
- Be for use primarily in the United States
Qualified battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), or fuel cell vehicles (FCEV), including cars and light trucks are eligible. Here’s more info and a list of qualified used vehicles.
Qualified Used Clean Vehicle Sales Requirements
The sale qualifies for a tax credit only if:
- You buy the vehicle from a dealer
- For qualified used EVs, the dealer reports required information to you at the time of sale and to the IRS.
Qualified Used Clean Vehicle Buyer Qualifications
To qualify for the used electric vehicle tax credit, 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 3 years before the purchase date
Used Clean Vehicle Buyer Income Level Caps
In addition, your modified adjusted gross income (AGI) may not exceed:
- $150,000 for married filing jointly or a surviving spouse
- $112,500 for heads of households
- $75,000 for all other filers
You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your income is below the threshold for 1 of the two years, you can claim the credit.
Leased EV Tax Credits Could Present a Loophole
A possible loophole for EV tax credit eligibility could be to lease an EV from a manufacturer. Leased EVs may qualify for a separate $7,500 “commercial vehicles credit” that goes to a manufacturer when they buy and lease a vehicle – and it doesn’t come with the country of manufacture, price, battery, or income restrictions highlighted above. A number of – but not all – manufacturers have indicated that they will be passing this tax credit on to consumers, and here’s a list of every EV lease tax credit offer available in 2024. Do your homework here and get everything in writing from the dealer if you are interested in this option.
Keep an Eye Out for EVs that Become Newly Eligible for the Tax Credit
All of these new rules around the Clean Vehicle Tax Credit are going to require some adjustments within the auto industry. I expect that many manufacturers will follow the rule changes in order to sell more EVs in the U.S. market, but it may take a few years for them to catch up. Supply chain and manufacturing modifications won’t happen overnight. Any newly eligible vehicles should be added to the lists found at the U.S. Department of Energy’s fueleconomy.gov tax credit site.
Don’t Forget State Electric Vehicle Tax Credits & Rebates
I have published and maintain a thorough list of state electric vehicle tax credits and rebates as well. There are currently 13 states with major tax credits or rebates. These tax credits are in addition to any federal tax credit. But, please do your research, as they can and do frequently expire if funds run dry.
Enhanced Federal Energy Tax Credits & New Rebates from the Inflation Reduction Act Are Available Too
If you’re interested in EV-related tax credits, rebates, and incentives, you should also look into the new federal energy tax credits and rebates. There are many tax credits and rebates available (including for solar panels, electrical panels, battery storage, and EV charging) that could make the prospect of electric vehicle ownership an even bigger cost-saving venture.