IRS Confirms All EVs And PHEVs Eligible For $3,750 And $7,500 Tax Credit In 2024

IRS Confirms All EVs And PHEVs Eligible For $3,750 And $7,500 Tax Credit In 2024 | Carscoops <!—-><!– –><!– –><!—-><!—->

The number of eligible vehicles is expected to increase as more carmakers submit the required information

 https://www.carscoops.com/author/bradcarscoops-com/

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by Brad Anderson

1 hour ago

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The U.S. Internal Revenue Service (IRS) has released the full list of EVs and PHEVs eligible for part or all of the government’s tax credit as of January 1, 2024, and the number of vehicles offered with a credit is smaller than previously reported.

New legislation that went into effect at the start of the year means that EVs with battery components made or assembled by a company based in a ‘foreign entity of concern,’ like China, North Korea, Russia, and Iran are not eligible for any part of the tax credit.

In addition, vehicles eligible for the full $7,500 credit must have batteries that have at least 50% of their components sourced from the U.S., Mexico, or Canada. The raw materials used in their batteries must also be sourced from a country the U.S. has a free trade agreement with.

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More: EVs Sold In U.S. Will Be Ineligible For Tax Credits If Their Batteries Are From ‘Foreign Entity Of Concern’

IRS Confirms All EVs And PHEVs Eligible For $3,750 And $7,500 Tax Credit In 2024

As it stands, just 13 battery-electric vehicles and PHEVs are eligible for either $3,750 in tax credits or the full $7,500, or 19 vehicles when you include different variants of the same car.

From Chevrolet, the 2022-2023 Bolt EUV and Bolt EV are its only two vehicles eligible for the full credit, although it expects the Lyriq, Blazer EV, Equinox EV, Silverado EV, GMC Sierra EV, and Cadillac Optiq to all become eligible for the credit when it makes a key sourcing change.

The sole Chrysler available is the Pacifica PHEV while Ford’s F-150 Lightning with both the standard range and extended range batteries get the full credit. The Escape Plug-in Hybrid is eligible for $3,750. Two Jeep models are also eligible for a $3,750 credit, namely the Grand Cherokee PHEV 4xe and Wrangler PHEV 4xe. The Lincoln Corsair Grand Touring also gets a $3,750 credit, as do the Rivian R1S and R1T dual and quad-motor variants. Rounding out the list are select Model 3, Model X, and Model Ys, all available with a $7,500 credit.

Importantly, the IRS notes that not all car manufacturers have submitted information on eligible vehicles, meaning the list will likely grow. VW has said the ID.4 should be eligible for the full credit while Nissan says it is also working on supplier changes so the Leaf is eligible. Tesla also told Reuters that the Cybertruck should be available for the credit later this year.