As a part of the Inflation Reduction Act, the revised Clean Vehicle Credit was enacted last August, which now only applies to American-made electric vehicles. However, the law also introduced new critical mineral and battery component requirements that may require attention to information not discernible from the window sticker.
The Department of Treasury recently posted guidance on the origin of battery materials, which will determine under the new rules whether buyers can claim $3,750 or $7,500. This guide goes into effect on April 18, but the government has only recently published a list of what qualifies for the full amount.
Automakers will continue to adjust their supply chains in response, and as a result, the tax credit amounts for many American-made EVs will fall from April 18, while the list of qualifying models will continue to grow.
Where to Check EV Tax Credit Status
Check the EPA’s consumer-facing website, FuelEconomy.gov, for a tax credit page that will help you determine what category your vehicle falls under and what tax credits you may qualify for.
2023 Ford F-150 Lightning
Tax-Credit Rules for Income and Price
Under the new rules, buyers need to meet new requirements for income, as well as price caps on the vehicles themselves. The credit now only applies with an adjusted gross income limitation of $300,000 for married couples filing jointly, $225,000 for head of household, or $150,000 for other filers. Regarding vehicle price caps, the new credit sets price limits of $55,000 for new cars and $80,000 for pickup trucks, SUVs, and vans, and the electric SUV list was clarified by the Treasury Department in February.
EVs and some plug-in hybrids purchased from August 16, 2022, through the end of 2022 qualified for the full $7,500 tax credit amount if they underwent final assembly in North America (including Mexico). Starting in 2023, new requirements for income and vehicle price caps went into effect.
2023 Tesla Model X – Courtesy of Tesla, Inc.
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What if You Already Paid for the EV?
The new battery requirements apply to when the vehicle was placed in service, not when it was ordered or purchased. Therefore, if you ordered a vehicle months ago that is not on this list but have not yet taken delivery, your tax credit opportunity has expired.
Lastly, bear in mind that while the rules follow purchases, there exist different rules for leases. Higher-income households looking at higher-priced EVs, even those made overseas, can still take advantage of a different spin on the $7,500 EV tax credit in lease form.
Models that Qualify for the Tax Credit
2022 Chevrolet Bolt EUV
Ahead of the new rules’ implementation on April 18, the following vehicles currently qualify for the $7,500 tax credit amount on purchases:
2023-2024 Cadillac Lyriq
2024 Chevrolet Blazer EV
2022-2023 Chevrolet Bolt EV
2022-2023 Chevrolet Bolt EUV
2024 Chevrolet Equinox EV
2024 Chevrolet Silverado EV
2022-2023 Chrysler Pacifica Hybrid
2022-2023 Ford F-150 Lightning (Standard and Extended Range)
2022-2023 Lincoln Aviator Grand Touring (PHEV)
2022-2023 Tesla Model 3 Performance
2022-2023 Tesla Model Y All-Wheel Drive
2023 Ford Mustang Mach-E
The models qualifying for $3,750 are:
2022-2023 Ford E-Transit
2022-2023 Ford Escape Plug-In Hybrid
2022-2023 Ford Mustang Mach-E (Standard and Extended Range)
2022-2023 Jeep Grand Cherokee 4xe
2022-2023 Jeep Wrangler 4xe
2022-2023 Lincoln Corsair Grand Touring (PHEV)
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