If you’ve been thinking of buying a new hybrid or electric car, truck or van, you’ll be happy to see that the federal government has published updated rules for tax credits on electric vehicles.
Under those rules, you could be eligible for a tax credit of up to $7,500.
Following are the basics for getting the credit, then a list of the vehicles eligible for credits of either $3,750 or $7,500.
Credit eligibility
These new credit rules are for purchasing a new “clean” vehicle that you’ve taken possession of on or after Jan. 1, 2024. (There is a used vehicle credit, too, with different rules.) The credits apply to vehicles that will be used (and not resold) in the United States by the person or business receiving the credit.
The vehicle must meet certain “critical” mineral and battery component requirements and must be assembled in North America. The manufacturer suggested retail price (MSRP) can’t be more than:
- $80,000 for sport utility vehicles, pickups and vans
- $55,000 for other vehicles
Also, there are income limits for those claiming the credit. Your modified adjusted gross income can’t be more than:
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
If you and the vehicle are eligible, you may be able to receive as much as $7,500 toward the purchase. Keep in mind that the money is in the form of a tax credit, and so you won’t receive more than you owe in federal income tax — up to a maximum of $7,500.
1. Cadillac Lyriq
Model years of this vehicle eligible for this tax credit: 2024
Amount of credit this vehicle is eligible for: $7,500
The 2024 Lyriq is an all-electric SUV, and so could qualify for the up-to-$80,000 price tag allowed for sport utility vehicles purchased under the tax credit program.
For the adventurous, Cadillac offers a hands-free “super cruise” driver assist option.
2. Chevrolet Bolt (and Bolt EUV)
Model years of this vehicle eligible for this tax credit: 2022-2023
Amount of credit this vehicle is eligible for: $7,500
Car & Driver calls the Bolt EUV (electric utility vehicle) “roomy for its size.”
What’s the difference between the Bolt EV and the Bolt EUV? For one thing, says the magazine:
“The 2023 Chevrolet Bolt EUV takes the regular Bolt EV hatchback’s underpinnings and tops them with sheetmetal that makes it look much more like an SUV — which, of course, is the body style American buyers vastly prefer.”
3. Chrysler Pacifica
Model years of this vehicle eligible for this tax credit: 2022-2024
Amount of credit this vehicle is eligible for: $7,500
Chrysler covers all the bases with its Pacifica PHEV. It calls the vehicle “America’s first and only plug-in hybrid minivan.”
MSRPs for models of the Pacifica PHEV begin at $51,095.
4. Ford F-150 Lightning
Model years of this vehicle eligible for this tax credit: 2022-2024
Amount of credit this vehicle is eligible for: $7,500
Ford’s F-150 Lightning with either the standard or extended-range battery is eligible for the tax credit.
The lineup of four Lightning models has starting MSRPs ranging from $49,995 to $91,995.
5. Tesla Model 3
Model years of this vehicle eligible for this tax credit: 2023-2024
Amount of credit this vehicle is eligible for: $7,500
The 2023 and 2024 model years of Tesla’s Model 3 Performance are eligible for the federal tax credit, according to FuelEconomy.gov.
The Model 3 has an estimated range of 272 miles and a top speed of 125 miles per hour, Tesla says.
6. Tesla Model Y
Model years of this vehicle eligible for this tax credit: Eligible years vary (see below)
Amount of credit this vehicle is eligible for: $7,500
The fully electric Model Y has 76 cubic feet of cargo space and an estimated range of 310 miles, the electric car maker says.
Tesla Model Y vehicles eligible for the federal tax credit include: Model Y All-Wheel Drive (for 2023 or 2024), Model Y Performance (for 2023 or 2024) and Model Y Rear-Wheel Drive (for 2024 only).
Tesla lists the Model Y starting MSRP as $36,490 after tax credit savings.
7. Volkswagen ID.4
Model years of this vehicle eligible for this tax credit: 2023-24
Amount of credit this vehicle is eligible for: $7,500
Volkswagen scores with eight ID.4 2023 or 2024 models that are eligible for the IRS credit program. These are:
- Volkswagen ID.4 AWD (All-Wheel Drive) Pro
- Volkswagen ID.4 AWD Pro S
- Volkswagen ID.4 AWD Pro S PLUS
- Volkswagen ID.4 Pro
- Volkswagen ID.4 Pro S
- Volkswagen ID.4 Pro S Plus
- Volkswagen ID.4 S
- Volkswagen ID.4 Standard
8. Honda Prologue
Model years of this vehicle eligible for this tax credit: 2024
Amount of credit this vehicle is eligible for: $7,500
The Prologue starts at an MSRP of $47,400. Its fast charging system offers 65 miles of range in 10 minutes of charging, with an overall 300-mile EPA range rating.
9. Audi Q5
Model years of this vehicle eligible for this tax credit: 2023-24
Amount of credit this vehicle is eligible for: $3,750
The Audi Q5 PHEVs — the 55 TFSI e quattro and S Line 55 TFSI e quattro — are eligible for a $3,750 tax credit. They offer 362 horsepower and can reach 60 mph in five seconds flat.
10. Ford Escape Plug-in Hybrid
Model years of this vehicle eligible for this tax credit: 2022-24
Amount of credit this vehicle is eligible for: $3,750
The 2024 Ford Escape PHEV starts at $40,500 and has an optional power liftgate and a 13.2-inch touchscreen. Standard colors include “Agate Black Metallic,” “Vapor Blue Metallic,” and “Carbonized Gray,” among others.
11. Jeep Grand Cherokee PHEV 4XE
Model years of this vehicle eligible for this tax credit: 2022-24
Amount of credit this vehicle is eligible for: $3,750
The Jeep Grand Cherokee 4xe has up to 470 miles of range and can tow up to 6,000 pounds. The starting MSRP is $60,490.
12. Jeep Wrangler PHEV 4XE
Model years of this vehicle eligible for this tax credit: 2022-24
Amount of credit this vehicle is eligible for: $3,750
Jeep’s Wrangler PHEV starts at $50,695. It gets up to 370 miles of driving per charge, and can charge fully in 12 hours. An optional “Free2move” charger upgrade can provide a full charge in just two hours.
13. Lincoln Corsair Grand Touring
Model years of this vehicle eligible for this tax credit: 2022-24
Amount of credit this vehicle is eligible for: $3,750
The Lincoln Corsair Grand Touring offers a full charge in either four hours or 11 hours, depending on the charger used. With up to 43 inches of legroom in the first row and almost 37 inches in the second row, it promises a roomy ride.
14. Nissan Leaf S (and SV PLUS)
Model years of this vehicle eligible for this tax credit: 2024
Amount of credit this vehicle is eligible for: $3,750
The Nissan Leaf offers “100% electric thrill” starting at just $28,140 for the S and $36,190 for the SV Plus. It has up to a 212-mile range.
15. Rivian R1S
Model years of this vehicle eligible for this tax credit: 2023-24
Amount of credit this vehicle is eligible for: $3,750
The R1S promises 390 miles of range, “the on-road handling of a sports car,” and the ability to drive through three feet of water. The starting price of $74,900 falls just shy of the $80,000 cutoff for this tax credit.
16. Rivian R1T
Model years of this vehicle eligible for this tax credit: 2023-24
Amount of credit this vehicle is eligible for: $3,750
The R1T, Rivian’s electric truck, offers an estimated 410 miles of range. It can tow 11,000 pounds and has 62 cubic feet of storage.
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