Here are the cars eligible for the $7,500 EV tax credit in the Inflation Reduction Act in 2023

The Inflation Reduction Act, the major climate bill, was signed August 16, changing the availability of electric vehicle tax credits. The law is still in the process of being implemented, so tax credit qualifications continue to change as the IRS offers further guidance. This post intends to break down the current eligibility requirements for the EV tax credit as they continue to be updated.

The Inflation Reduction Act focused on expanding availability of tax credits (including allowing plug-in hybrid models to access the full credit), bringing more EV and battery production to the US, and ensuring that credits are not all taken up by luxury cars purchased by members of the upper income brackets.

But the phase-in times of various provisions have created a lot of confusion in the EV community about which vehicles will qualify and when.

One of those requirements, which went into place on August 16, is that vehicles must be assembled in North America to qualify for EV purchase tax credits. The Department of Energy’s Alternative Fuels Data Center maintains a list of vehicles with final assembly in North America. You can verify your car’s final assembly location by using the VIN decoder at the bottom of this page.

However, the Treasury has suggested that cars assembled outside North America may qualify for the EV tax credit through the commercial vehicle tax credit, assuming those cars are leased not purchased. So dealerships can still file for tax credits on leased vehicles, and presumably pass this on in the form of lower lease payments.

The tax credit is limited to cars under $55K MSRP and under $80K MSRP for trucks and SUVs. Existing federal law includes arcane definitions of what constitutes an SUV, and the applicable MSRP limit for each model per those definitions is listed in the tables below. MSRP does not mean the price you paid for the car, but the manufacturer’s suggested price, which will be listed on the window sticker.

Below is the IRS’ list of electric vehicles and plug-in hybrids made by qualified manufacturers, sorted by manufacturer. Some manufacturers have submitted paperwork to become a “qualified manufacturer” but have not yet submitted a list of eligible vehicles, so their entries will be empty until they submit that information to the IRS.

We’ve added links where possible so you can search local dealer inventory for the car you’re looking for. We’ll be updating this list as the IRS adds more cars to it.

Audi

Model YearVehicle DescriptionMSRP Limit
2023Audi Q5 TFSI e Quattro (PHEV model)$80,000

BMW

Model YearVehicle DescriptionMSRP Limit
2021, 2022, 2023BMW 330e$55,000
2021, 2022, 2023BMW X5 xDrive45e$80,000

Ford (includes Lincoln)

Model YearVehicle DescriptionMSRP Limit
2022, 2023Ford Escape Plug-In Hybrid$80,000
2022, 2023Ford E-Transit Van$80,000
2022, 2023Ford F-150 Lightning$80,000
2022, 2023Ford Mustang MACH E$55,000
2022, 2023Lincoln Aviator Grand Touring (PHEV model)$80,000
2022, 2023Lincoln Corsair Grand Touring (PHEV model)$55,000

General Motors (includes GMC, Chevy, Buick, Cadillac)

Model YearVehicle DescriptionMSRP Limit
2022, 2023Chevrolet Bolt$55,000
2022, 2023Chevrolet Bolt EUV$55,000
2022, 2023Cadillac Lyriq$55,000*
*Lyriq base price is over the $55k MSRP limit, so unlikely to qualify

Honda

*Honda has not yet submitted a list of models to the IRS.

Hyundai

*Hyundai has not yet submitted a list of models to the IRS.

Jaguar Land Rover

*Jaguar Land Rover has not yet submitted a list of models to the IRS.

Kia

*Kia has not yet submitted a list of models to the IRS.

Mazda

*Mazda has not yet submitted a list of models to the IRS.

Mercedes-Benz

*Mercedes has not yet submitted a list of models to the IRS.

Mitsubishi

*Mitsubishi has not yet submitted a list of models to the IRS.

Nissan

Model YearVehicle DescriptionMSRP Limit
2021, 2022, 2023Nissan Leaf S$55,000
2021, 2022Nissan Leaf S Plus$55,000
2021, 2022Nissan Leaf SL Plus$55,000
2021, 2022Nissan Leaf SV$55,000
2021, 2022, 2023Nissan Leaf SV Plus$55,000

Polestar

*Polestar has not yet submitted a list of models to the IRS.

Porsche

*Porsche has not yet submitted a list of models to the IRS.

Proterra

*Proterra has not yet submitted a list of models to the IRS.

Rivian

Model YearVehicle DescriptionMSRP Limit
2022, 2023Rivian R1S (Reserve here)$80,000*
2022, 2023Rivian R1T (Reserve here)$80,000*
*MSRP limit is very close to base price, only low-optioned models will qualify

Stellantis (includes Chrysler, Jeep)

Model YearVehicle DescriptionMSRP Limit
2022, 2023Chrysler Pacifica PHEV$80,000
2022, 2023Jeep Wrangler 4xe$80,000
2022, 2023Jeep Grand Cherokee 4xe$80,000

Subaru

*Subaru has not yet submitted a list of models to the IRS.

Tesla

Model YearVehicle DescriptionMSRP Limit
2022, 2023Tesla Model 3 Rear Wheel Drive (Order here)$55,000
2022, 2023Tesla Model 3 Long Range (Order here)$55,000
2022, 2023Tesla Model Y All-Wheel Drive – 7 seat (Order here)$80,000*
2022, 2023Tesla Model Y Long Range – 7 seat (Order here)$80,000*
2022, 2023Tesla Model Y Performance – 7 seat (Order here)$80,000*
2022, 2023Tesla Model Y All-Wheel Drive – 5 seat (Order here)$55,000
2022, 2023Tesla Model Y Long Range – 5 seat (Order here)$55,000
2022, 2023Tesla Model Y Performance – 5 seat (Order here)$55,000
*Model Y only qualifies for $80k MSRP limit with third row, 7-seat option

Toyota

*Toyota has not yet submitted a list of models to the IRS.

Volkswagen

Model YearVehicle DescriptionMSRP Limit
2023*Volkswagen ID.4$55,000
2023*Volkswagen ID.4 Pro$55,000
2023*Volkswagen ID.4 Pro S$55,000
2023*Volkswagen ID.4 S$55,000
2023*Volkswagen ID.4 AWD Pro$80,000**
2023*Volkswagen ID.4 AWD Pro S$80,000**
*2023 model is made in Tennessee, 2022 models were made in Germany. **$80k MSRP limit for AWD models, $55k otherwise

Volvo

Model YearVehicle DescriptionMSRP Limit
2022Volvo S60 (PHEV)$55,000
2022Volvo S60 Extended Range$55,000
2023Volvo S60 T8 Recharge (Extended Range)$55,000

Note that this list will change with time. We can’t guarantee that any given customer will get access to the credit and are providing the best information we can. Manufacturers can contact the IRS to be added to this list.

Further, some models may change production mid-year or are based on specific trim levels, so you should confirm that your individual vehicle was assembled in a North American plant if you are taking advantage of the purchase credit. The AFDC recommends that you use their VIN decoder at the bottom of this page to confirm that your car was assembled in North America. If you are leasing your car, the dealership will be responsible for doing the paperwork to claim the commercial credit.

The IRS has released a page explaining section 30D of the Internal Revenue Code, which is the section that contains the EV tax credit. This includes a description of what a “written binding contract” is, which allowed EV buyers to take the “old” credit if they signed a purchase contract before the day the IRA was signed.

The tax credit relies on several definitions, some of which the IRS defines here. These are mostly self-explanatory (final assembly, North America, MSRP, etc).

Income caps have also been put into place, meaning those earning over $150K ($225K head of household, $300K filing jointly) will not be able to take advantage of the EV tax credit.

Other requirements which have not yet phased in include battery material and critical mineral sourcing guidelines that will be developed by the IRS. The IRS was supposed to issue those guidelines by the end of 2022, but it looks like they will now issue them “sometime in March.” This means there may be a window from January 1 until March 2023 where some cars, like the Chevy Bolt, qualify for a $7,500 credit, rather than the anticipated $3,750.

Here is a handy flowchart detailing which cars will qualify for the tax credit, assuming there are no surprises in the IRS’ battery guidance:

EV tax credit flowchart

There’s also a provision to allow buyers to take advantage of the EV tax credit upfront at the point of sale, but that doesn’t go into place until 2024. The $4,000 used vehicle credit starts in 2023, as does a commercial vehicle credit.

Frequently Asked Questions on the EV tax credit

How much is the electric car tax credit?

Cars assembled in North America can qualify for up to $7,500 in federal EV tax credits – $3,750 if the battery components were built in North America, and $3,750 if “critical minerals” in the battery are sourced from the US or countries the US has free trade agreements with. Cars assembled outside of North America can still qualify for a commercial vehicle tax credit, assuming they are leased, not purchased.

When does the new EV tax credit start?

It has already started, though various provisions will phase in over the next months and years. Cars assembled outside of NA, or above the income or price caps, already do not qualify for tax credits. Battery component restrictions go into effect some time in March. An upfront point-of-sale credit will phase in in 2024.

What cars qualify for the EV tax credit?

North American-assembled cars which fall under the $55k/$80k price cap qualify for the EV tax credit, though in March this will start depending on where their battery components and critical minerals were sourced. While cars assembled outside NA don’t qualify for the purchase credit, leased vehicles can still take advantage of the commercial EV tax credit.

How to claim the $7,500 EV tax credit?

File Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit with your tax return. Starting in 2024, the credit will be claimable upfront at the time of purchase, without needing to file a tax return after the fact. The IRS is still working out the specifics.

I thought the EV tax credit was available at point of sale?

The Inflation Reduction Act includes a provision to make credits available at the point of sale, but it doesn’t go into effect until 2024.

Can I get the EV tax credit on a car assembled outside of North America?

Per the new IRS fact sheet on the Inflation Reduction Act, leased vehicles can qualify for the commercial vehicle tax credit, which doesn’t require North American assembly. If you lease a foreign-assembled vehicle from a dealership, the dealership should qualify for the EV tax credit, which they can then pass on to the buyer.

Can I get the EV tax credit on a used car?

Yes, there is a tax credit available for used EV purchases, but it is much more limited than the new vehicle tax credit. To qualify, you must buy an EV for under $25k from a licensed dealer, and the credit will be in the amount of 30% of the price of the vehicle, up to $4,000 maximum.

What if I don’t have $7,500 in tax liability?

The tax credits are nonrefundable and can’t be applied to future tax years, so if your total tax liability is not high enough, you won’t be able to take full advantage of the credit. It is possible that in the future, when the credit is made available upfront at the point of sale in 2024, low-income buyers will be able to transfer the credit to the dealership and thus take advantage of the full amount, despite low tax liability. Consult a tax professional for more information about your specific situation.

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Avatar for Jameson Dow Jameson Dow

Jameson has been driving electric vehicles since 2009, and has been writing about them and about clean energy for electrek.co since 2016.

You can contact him at jamie@electrek.co