The Treasury has announced which EVs meet strict new battery and mineral standards.
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This story is part of Taxes 2023, CNET's coverage of the best tax software, tax tips and everything else you need to file your return and track your refund.
The US Treasury has announced which electric vehicles meet its strict new battery component and mineral standards required to qualify for theclean vehicle credit, which is worth up to $7,500.
Fewer than a dozen cars are eligible for the full incentive, according to the Treasury Department's list, all from US-based manufacturers.
TheInflation Reduction Actoverhauled the EV tax break, adding income limits, price caps and other provisions. It also broke the credit into two parts: You can claim $3,750 if half of the value of your vehicle's battery components are manufactured or assembled in North America.
Read more:Tough New Emission Standards Could Drive Up EV Sales By 60%
The other half is dependent on at least 40% of critical minerals like graphite, lithium and cobalt being sourced from the US or a trade partner.
While most of the new EV guidance went into effect in January 2023, final mineral and battery requirements were delayed until April.
For more on electric vehicles, see how many charging stations there are in your stateand lay your eyes on the first hybrid Corvette.
Which models are now eligible?
For an EV received on or after April 18, 2023, to qualify for the full $7,500 credit, half of the value of its battery components must be manufactured or assembled in North America and 40% of its critical minerals must be sourced from the US or a trade partner country.
The battery component standard increases annually until it hits 100% in 2029, while the mineral requirement ratchets up through 2027, when it will max out at 80%.
These models remain eligible under the new provisions, which are in effect through Dec. 31, 2032.
Qualify for full $7,500 credit
|2022-2023 Chrysler Pacifica PHEV|
|2022-2023 Chevrolet Bolt|
|2022-2023 Chevrolet Bolt EUV|
|2023-2024 Cadillac LYRIQ|
|2024 Chevrolet Silverado|
|2024 Chevrolet Blazer|
|2024 Chevrolet Equinox|
|2022-2023 Tesla Model 3 Performance|
|2022-2023 Tesla Model Y AWD|
|2022-2023 Tesla Model Y Long Range AWD|
|2022 Tesla Model Y Performance|
These models meet only one of the requirements and qualify for 50% of the credit, or $3,750.
Qualify for 50% of EV tax credit
|2022 Ford e-Transit|
|2022 Ford Escape Plug-in Hybrid|
|2022-2023 Ford F-150 Lightning (standard and extended range)|
|2022-2023 Ford Mustang Mach-E (standard and extended range)|
|2022-2023 Jeep Grand Cherokee PHEV 4xe|
|2022-2023 Jeep Wrangler PHEV 4xe|
|2023 Lincoln Aviator Grand Touring|
|2022 Lincoln Corsair Grand Touring|
|2022-2023 Tesla Model 3 Standard Range RWD|
The lists will likely grow as "some qualified manufacturers have yet to submit information," the Treasury Department said in a statement.
Check the Department of Energy's fuel economy website for updates.
Which cars no longer qualify at all?
These models were eligible at the start of the year but do not meet the new standards.According to the IRS, you can still claim the credit if the vehicle was received -- not just purchased -- on or before April 17, 2023.
No tax credit
|Audi Q5 TFSI e Quattro|
|BMW X5 xDrive45e|
|Genesis Electrified GV70|
|Nissan Leaf S, S Plus, SL Plus, SV and SV Plus|
|Volkswagen ID.4 (VW had expected to qualify for at least one credit)|
|Volvo S60 (PHEV), Extended Range and T8 Recharge (Extended Range)|
I bought my EV in 2022. Does it qualify for the credit?
To qualify for the credit on your 2022 tax return, a vehicle must have been purchased before Jan. 1, 2023, be for your own use and be driven primarily in the US.
It must also have an external charging source and a gross vehicle weight rating of under 14,000 pounds.
To be eligible, the vehicle must also come from a manufacturer that hasn't sold more than 200,000 EVs in the US. In practice, that makes current models from Tesla and Ford ineligible, though this stipulation has been lifted for 2023.
If you bought your EV between Aug. 17 and Dec. 31, 2022, it must have undergone final assembly in North America.
According to the IRS, you don't have to worry about the final assembly requirement if you "entered into a written binding contract" after Dec. 31, 2021, but before Aug. 17, 2022. (It's a good idea to check with the IRS or your tax preparer to be certain, though.)
Below is the list of approved 2022 car models from the Department of Energy's Alternative Fuels Data Center website. (You can also enter your automobile's vehicle identification number, or VIN, on theDepartment of Energy website.)
As noted, some manufacturers have reached the maximum number of EVs they could sell and still be eligible for the full credit.
Approved 2022 vehicles
|Vehicle||Manufacturer sales cap|
|BMW X5 xDrive45e (PHEV)|
|Chevrolet Bolt EUV||Manufacturer sales cap met|
|Chevrolet Bolt EV||Manufacturer sales cap met|
|Chrysler Pacifica PHEV|
|Ford Escape PHEV|
|Ford F-150 Lightning|
|Ford Mustang MACH E|
|GMC Hummer EV Pickup||Manufacturer sales cap met|
|GMC Hummer EV SUV||Manufacturer sales cap met|
|Jeep Grand Cherokee 4xe|
|Jeep Wrangler 4xe|
|Lincoln Aviator PHEV|
|Lincoln Corsair PHEV|
|Tesla Model 3||Manufacturer sales cap met|
|Tesla Model S||Manufacturer sales cap met|
|Tesla Model X||Manufacturer sales cap met|
|Tesla Model Y||Manufacturer sales cap met|
|Volvo S60 Recharge|
If you purchased an EV in a previous year but missed claiming the credit, you may be able to claim it by filing an amended return for the tax year when you took possession of it.
I bought my EV in 2023 but before April 18. Is it eligible?
These makes and models qualify for the credit if they were received between Jan. 1 and April 17, 2023,according to the IRS.
|2023||BMW X5 xDrive45e (PHEV)|
|2023||Chevrolet Bolt EV|
|2023||Jeep Grand Cherokee 4xe|
|2023||Jeep Wrangler 4xe|
|2023||Lincoln Aviator PHEV|
|2023||Lincoln Corsair Grand Touring|
|2023||Mercedes EQS SUV|
|2023||Tesla Model 3|
|2023||Tesla Model S|
|2023||Tesla Model X|
|2023||Tesla Model Y|
|2023||Audi Q5 TFSI Quattro|
|2023||BMW X5 xDrive45e|
|2023||Jeep Grand Cherokee 4xe|
|2023||Jeep Wrangler 4xe|
|2023||Lincoln Aviator Grand Touring|
|2023||Lincoln Corsair Grand Touring|
|2023||Volvo S60 Recharge|
|2023||Volvo S60 t8 Recharge|
More EV news and advice
- Home EV Charging 101: Levels of Charging Explained
- 7-Eleven Launches 7Charge Electric Vehicle Charging Network
- You Can Now Get a Bank Loan to Finance Your Home EV Charger
What are the other changes to the EV tax credit?
The Inflation Reduction Act made several major changes to the tax credit:
- The manufacturing cap, which disqualified automakers that have manufactured more than 200,000 EVs, has been lifted.
- There is a price cap on qualifying EVs. For passenger cars, the manufacturer's suggested retail price, or MSRP, must be $55,000 or less. For vans, SUVs and light trucks, the ceiling is $80,000.
- Starting in 2024, the credit can be implemented at the point of sale as "cash on the hood," meaning you can apply it toward the purchase price of your vehicle.
Also starting next year, vehicles that contain battery partsfrom "a foreign entity of concern" -- a classification that includes China and Russia -- will be unable to claim any of the credit. For critical minerals, the cutoff is 2025.
There is also a ceiling on theadjusted gross incometo qualify for the credit.
Income cap for EV tax credit
|Head of household||$225,000|
|Married, filing jointly||$300,000|
|Married, filing separately||$150,000|
For the most part, these changes took effect on Jan. 1, 2023, and will remain in effect until Jan. 1, 2032. Always checkthe IRS websitefor updates.
Can I claim the tax credit on a used EV?
Beginning in 2023, plug-in electric or fuel-cell EVs can qualify for a credit of up to 30% of its purchase price, maxing out at $4,000.
There are certain restrictions:
- The used EV tax credit can only be claimed once in a vehicle's lifetime. Subsequent owners will not be eligible.
- The MSRP of the car must be $25,000 or less.
- The car must be at least 2 years old. If you bought it in 2023, it must be from model year 2021 or earlier.
- Used vehicles purchased before 2023 are not eligible.
- The vehicle must have been purchased from a qualified dealer who reports the transaction to the IRS.
- The vehicle must otherwise meet the requirements for the EV credit.
Below are income caps for owners of used EVs wishing to claim the credit.
Used EV income cap
|Filing status||Modified adjusted gross income|
|Head of household||$112,500|
|Married, filing jointly||$150,000|
|Married, filing separately||$75,000|
How do I claim the EV tax credit?
To claim the credit for an EV you took possession of in 2022, fileIRS Form 8936with your 2022 tax return. (You will need to provide the VIN for your vehicle.)
Do individual states have EV tax incentives?
In addition to the federal EV tax credit, a number of states offer rebates for clean vehicles. Some can't be taken in conjunction with the federal credit, so be sure to get all the information before claiming anything.
California's Clean Vehicle Rebate Project offers credits of between $1,000 and $7,000 for the purchase or lease of certain new EVs, plug-in hybrids and fuel-cell vehicles. EnergySage, an online marketplace for home solar-energy solutions, has a list of state rebate programs.
The Energy Department's Alternative Fuels Data Centerhas information on various incentives offered by states, utilities and private organizations.
Do I get a tax credit for installing an EV charger?
The Inflation Reduction Act also extended the tax break for residential charging systems through 2032 and made it retroactive to Jan. 1, 2022.
It's worth $1,000, or 30% of the cost of buying or installing the system, whichever is less.
The credit now also applies tobidirectional charging equipment, which lets you use your EV to power other appliances or even your home. Not many models have that capability, but it can be handy in an outage or other emergency.
To claim the Alternative Fuel Vehicle Refueling Property Credit, you must file IRSForm 8911.
For more on EVs, find out how you can finance a home EV charger and get under the hood with Tesla's new EV motor.
Vehicles that qualify for the full $7,500 in tax credits include the Cadillac Lyriq; Chevrolet Blazer, Bolt, Bolt EUV, Equinox, and Silverado; Chrysler Pacifica PHEV, Ford F-150 Lightning, Lincoln Aviator Grand Touring, and Tesla Model 3 Performance.How to get the 7500 EV tax credit? ›
- The car must be purchased from a licensed dealer.
- The model year must be at least 2 years old.
- The sale price must be $25,000 or less.
- It's only available to individuals, not businesses.
Vehicles that qualify for the full $7,500 in tax credits include the Cadillac Lyriq; Chevrolet Blazer, Bolt, Bolt EUV, Equinox, and Silverado; Chrysler Pacifica PHEV, Ford F-150 Lightning, Lincoln Aviator Grand Touring, and Tesla Model 3 Performance.Is the 7500 EV credit still available? ›
For EVs placed into service in 2023, the Inflation Reduction Act extends the up to $7,500 EV tax credit for 10 years — until December 2032. The tax credit is taken in the year that you take delivery of the EV.Do hybrid vehicles qualify for tax credit? ›
Details: Under the new rules, just 11 electric and plug-in hybrid vehicles qualify for the full $7,500 tax credit — about half as many as were eligible before the new rules took effect. But 90% of the best-selling EVs still qualify, including Tesla's Model Y and Model 3 and the Chevrolet Bolt.How do I make sure I get the full EV tax credit? ›
To meet the critical mineral requirement ($3,750) of the full tax credit, a percentage of the vehicle's battery materials, like lithium and nickel, needs to be processed or extracted either in the US or in a country with which the US has a free trade agreement(Opens in a new window).How many times can I get a federal tax credit for an EV? ›
How much money can I get back for buying an EV? Under the new rule, consumers can get up to $7,500 in tax credits on eligible cars. There is no limit to the number of EVs automakers can sell with tax credits, as long as those vehicles meet the requirements.Does everyone get the EV tax credit? ›
If you do not have any tax liability, you will not get the credit back as a refund. For tax year 2022 (taxes filed in 2023), the EV tax credit ranges from $2,500 to $7,500, and eligibility depends on the vehicle's weight, how many cars the manufacturer has sold and whether you own the car.How many times can you use EV credit? ›
How Many Times Can You Claim the Electric Vehicle Tax Credit? You can only claim the credit once for each qualifying vehicle. The tax credit must be claimed in the year when you purchased and began to use your new fully electric or plug-in hybrid model car or fully electric two-wheeled vehicle.What is the Inflation Reduction Act 2023? ›
The Inflation Reduction Act also includes direct savings for households to make crucial, cost-saving energy efficiency improvements to their home. Tax credits will be available as soon as 2023 for purchases of new and used electric vehicles and energy efficient home improvements such as heat pumps and solar panels.
Did you know that if you lease a new BMW iX or i4 from Bill Jacobs BMW, you may qualify for an additional $7,500 in EV credits? This lease credit is applicable for BMW i4 eDrive35 or BMW iX xDrive50 models.Does Prius prime qualify for tax credit? ›
2022 Electric Vehicles & Tax Credits.
|Vehicle||Vehicle Type||Full Credit|
|Toyota Prius Prime||PHEV||$4,502|
|Toyota RAV4 Prime||PHEV||$7,500|
Our Mission. The Clean Vehicle Rebate Project (CVRP) promotes clean vehicle adoption in California by offering rebates from $1,000 to $7,500 for the purchase or lease of new, eligible zero-emission vehicles, including electric, plug-in hybrid electric and fuel cell vehicles.Can you claim EV tax credit every year? ›
The credit is limited to 30% of the vehicle's purchase price. You can claim the credit once every three years.Do tax credits increase refund? ›
A tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe. Eligible taxpayers can use them to reduce their tax bill and potentially increase their refund.How does a tax credit work if I don't owe taxes? ›
Even with no taxes owed, taxpayers can still apply any refundable credits they qualify for and receive the amount of the credit or credits as a refund. For example, if you end up with no taxes due and you qualify for a $2,000 refundable tax credit, you will receive the entire $2,000 as a refund.What qualifies for EV tax credit 2023? ›
Who Qualifies. 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).How much is the EV federal tax credit per person? ›
The income cutoff goes up to $300,000 for buyers filing joint returns. Used EVs must be at least two years old and cost $25,000 or less to qualify for the $4,000 tax credit. Income limits are $75,000 for individuals and up to $150,000 for joint filers.Can I claim 2 EV credits? ›
Can a household receive multiple EV tax credits? If two members of the same household purchase electric vehicles for themselves, they can separately claim the credit for their individual cars. If the two buy an EV together, the credit may only be claimed once.How does tax credit work? ›
How tax credits work. A tax credit is a dollar-for-dollar reduction of your income. For example, if your total tax on your return is $1,000 but are eligible for a $1,000 tax credit, your net liability drops to zero.
The Inflation Reduction Act of 2022 includes two provisions authorizing $8.8 billion in rebates for Home Efficiency Rebates and Home Electrification and Appliance Rebates.Does Chevy Bolt qualify for tax credit? ›
On January 1, 2023, the Inflation Reduction Act of 2022 qualified certain electric vehicles (EVs) for a tax credit of up to $7,500. Based on new IRS guidance, the $7,500 credit will be reduced to $3,750 for Model 3 Rear-Wheel Drive deliveries starting April 18.How much can I save on buying an EV? ›
According to a study from the U.S. Department of Energy's National Renewable Energy Laboratory and the Idaho National Laboratory, EV owners can save as much as $14,500 on fuel costs by owning an electric car for 15 years. That's almost $1,000 in savings for every year of driving.How long can you finance an EV for? ›
How long can you finance an electric car? Depending on your eligibility and credit history, Mountain America Credit Union can approve your EV loan for terms of 36, 48, 60 or 72 months.What is the Inflation Reduction Act $14000? ›
Up to $14,000. Limited to households below 150% of area median income. Eligible applicants: Low- or moderate-income (LMI) households.What is the Inflation Reduction Act 2024? ›
The Inflation Reduction Act amends the design of the Part D benefit. For 2024, the law eliminates the 5% beneficiary coinsurance requirement above the catastrophic coverage threshold, effectively capping out-of-pocket costs at approximately $3,250 that year.Does BMW i4 qualify for 7500? ›
RECEIVE UP TO A $7,500 CREDIT ON A NEW 2023 BMW i4 NOW THROUGH MAY 1st, 2023. You already know the thrill of driving a brand-new BMW. Now, BMW Financial Services NA, LLC wants to reward your loyalty by making that experience even more exhilarating.What is the BMW i4 7500 credit? ›
Lease a 2023 BMW i4 eDrive35 for $499/month for 36 months (Receive a $7,500 Lease Credit now through February 28th) Lease payment is calculated based on Manufacturer's Suggested Retail Price for vehicle as shown and does not necessarily represent the dealer's actual sale price. Dealer sets actual price.What is the rebate for 2023 BMW i4? ›
Customers who purchase qualified residential fueling equipment after January 1, 2023, may receive a tax credit of up to $1,000.
Lack of public charging stations is definitely an issue! On average, it costs about $23.60 to charge a Prius Prime. If you want to break it down further, it costs about $0.12 per kWh to charge your Prius.Does Kia EV6 qualify for tax credit? ›
Is the Kia EV6 eligible for the federal tax credit? Unfortunately, the Kia EV6 is no longer eligible for any federal tax credits from the IRS. The EV6 lost its tax eligibility in 2022 when federal guidelines shifted to exclude vehicles not assembled in North America.Is there a tax benefit to buying a hybrid? ›
Plug-In Hybrid and EV Tax Credits. Claim a federal tax credit of up to $7,500 for purchasing a new hybrid or electric vehicle (EV). Electric vehicle and hybrid sales have been steadily increasing since their creation; consider this tax incentive to make the move from gas to an electric powered automobile.How can I get money to buy an electric car? ›
Clean Vehicle Rebate Project (CVRP)
Get up to $7,000 to purchase or lease a new plug-in hybrid, battery electric, or fuel cell electric vehicle. CVRP is available to income-eligible California residents. Increased rebates for low-income applicants available!
A customer must apply for a Rebate Now before they purchase or lease an EV. CVRP will process the rebate in normal processing time (typically 30-45 days.)Are there any incentives for buying an electric car in California? ›
Get up to $7,000 to purchase or lease a new plug-in hybrid electric vehicle (PHEV), battery electric vehicle (BEV), or a fuel cell electric vehicle (FCEV).Can I claim EV tax credit if I get a tax refund? ›
You can only claim this rebate in the year in which you bought your vehicle. If you're eligible for a tax refund as well, you'll receive both your refund and EV tax credit.What is the tax return 7500? ›
In an attempt to move the United States toward sustainability, the Internal Revenue Service (IRS) is offering a tax credit of up to $7,500 for Americans who purchase an electric vehicle (EV) going forward. The credit was inhanced in the Inflation Reduction Act passed by President Joe Biden in 2022.How does a tax credit work? ›
What Is a Tax Credit? A tax credit lowers the amount of money you must pay the IRS. Not to be confused with deductions, tax credits reduce your final tax bill dollar for dollar. That means that if you owe Uncle Sam $5,000, a $2,000 credit would shave $2,000 off your total tax bill.Is the federal EV tax credit still available? ›
Yes! Under revised terms in the inflation reduction act. Used EVs will now qualify in addition to new vehicles as previously stated. Starting January 1, 2023 qualifying used EVs priced below $25,000 can qualify for up to $4,000 in federal tax credits.
Get up to $7,000 to purchase or lease a new plug-in hybrid electric vehicle (PHEV), battery electric vehicle (BEV), or a fuel cell electric vehicle (FCEV).How to get $7,000 tax refund? ›
Have investment income less than $10,300 in tax year 2022. Have a valid Social Security number by the due date of your 2021 return. Be a US citizen or resident alien for the entire year. Cannot file a Form 2555 (Foreign Earned Income)How many times can you get the 7500 tax credit? ›
You can claim the credit once every three years. Your modified AGI must be less than $150,000 (Married Filing Jointly and Qualifying Surviving Spouse), $112,500 (Head of Household), or $75,000.What is the 7000 tax break? ›
Requirements to receive up to $7,000 for the Earned Income Tax Credit. EITC recipients can receive up to $6,935, almost $7,000. However, the exact amount will depend on the situation of each family or individual applying, such as the number of children one has or annual income.How do I get a $10000 tax refund 2023? ›
- Select the right filing status.
- Don't overlook dependent care expenses.
- Itemize deductions when possible.
- Contribute to a traditional IRA.
- Max out contributions to a health savings account.
- Claim a credit for energy-efficient home improvements.
- Consult with a new accountant.
Credits may earn you a tax refund
If you qualify for tax credits, such as the Earned Income Tax Credit or Additional Child Tax Credit, you can receive a refund even if your tax is $0. To claim the credits, you have to file your 1040 and other tax forms.
You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.How to get a $10,000 tax refund? ›
Individuals who are eligible for the Earned Income Tax Credit (EITC) and the California Earned Income Tax Credit (CalEITC) may be able to receive a refund of more than $10,000. “If you are low-to-moderate income and worked, you may be eligible for the Federal and State of California Earned Income Tax Credits (EITC).When to expect tax refund 2023 with EITC? ›
The IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by Feb. 28 if they chose direct deposit and there are no other issues with their tax return.Is there a tax write off for buying a Tesla? ›
As part of the 2023 Inflation Reduction Act, eligible businesses and tax-exempt organizations can claim up to a $7,500 credit when purchasing new Tesla vehicles with a gross vehicle weight rating (GVWR) of up to 14,000 pounds. All Tesla passenger vehicles qualify for this incentive: Model S. Model 3.