The federal government’s $7,500 tax break for electric vehicle purchases has never been easier to claim. But let’s address the elephant in the room: There aren’t that many EVs that qualify for the full or partial credit right now.
While the discount is substantial, it applies only to electric vehicles that meet certain requirements, mostly around the sourcing and manufacturing of battery materials.
Yes, the list of eligible EVs shrank considerably in 2024 as the requirements got tighter. But experts are optimistic.
“I do expect that this [list] will increase over time,” said Kate Whitefoot, an associate professor of engineering and public policy at Carnegie Mellon University. That’s because it’s going to take time for automakers to set up the domestic battery and mineral supply chains necessary to meet the tax credit requirements — which are still relatively new, she said.
Some experts believe you shouldn’t wait for the list to grow. If you want an EV right now, there’s no need to wait for more vehicles to qualify, said Peter Glenn, founder and co-CEO of EV Life, an EV finance platform. “The electric vehicle is like a savings account on wheels,” he said, and the economics are already good for buyers in the market right now.
So how do you know which EVs are eligible for the credit, and which aren’t?
Thankfully, the government maintains a running list, which we break down for you below. But it’s still important to understand the “why” behind the rules. Here’s a rundown of how the tax credit works and what to expect.
How the EV tax credit works
Up until last year, the EV tax credit worked like most others: You would purchase the EV at full price, then apply for the $7,500 credit after the fact and receive the discount when you filed your taxes. That meant customers had to be willing to front the full price of an EV and get a rebate months later.
But thanks to a recent rule change, participating car dealers can now apply the discount at the point of sale, meaning the customer sees a reduction in the sticker price and there’s no need for you to file paperwork later.
New electric vehicles can qualify for either the full $7,500 credit or a partial $3,750 credit (we’ll get into why that is later). Also worth mentioning: There’s a similar tax credit of up to $4,000 for used electric vehicles as well.
All EVs that qualify for the federal tax credit right now
The qualifying rules became stricter in 2024, which is why the list of eligible EVs got smaller. Federal rules dictate a few key thresholds that EVs must meet to qualify for the credit. Some of them are typical income and price limits, but others relate to where EV batteries are manufactured, and where the materials come from.
Here is the most current list of qualifying EVs for purchases made after Jan.1, 2024.
|
EV Make, Model, Year |
Tax credit amount |
MSRP limit |
|
Chevrolet, Bolt EUV (2022-2023) |
$7,500 |
$55,000 |
|
Chevrolet, Bolt EV (2022-2023) |
$7,500 |
$55,000 |
|
Ford, F-150 Lightning: Extended Range Battery (2022-2024) |
$7,500 |
$80,000 |
|
Ford, F-150 Lightning: Standard Range Battery (2022-2024) |
$7,500 |
$80,000 |
|
Rivian, R1S Dual Large (2023-2024) |
$3,750 |
$80,000 |
|
Rivian, R1S Quad Large (2023-2024) |
$3,750 |
$80,000 |
|
Rivian, R1T Dual Large (2023-2024) |
$3,750 |
$80,000 |
|
Rivian, R1T Dual Max (2023-2024) |
$3,750 |
$80,000 |
|
Rivian, R1T Quad Large (2023-2024) |
$3,750 |
$80,000 |
|
Tesla, Model 3 Performance (2023-2024) |
$7,500 |
$55,000 |
|
Tesla, Model X Long Range (2023-2024) |
$7,500 |
$80,000 |
|
Tesla, Model Y All-Wheel Drive (2023-2024) |
$7,500 |
$80,000 |
|
Tesla, Model Y Performance (2023-2024) |
$7,500 |
$80,000 |
|
Tesla, Model Y Rear-Wheel Drive (2024) |
$7,500 |
$80,000 |
|
Volkswagen, ID.4 AWD Pro, Pro S, Pro S Plus (2023-2024) |
$7,500 |
$80,000 |
|
ID.4 Pro, Pro S, Pro S Plus (2023-2024) |
$7,500 |
$80,000 |
|
ID.4 S, Standard (2023-2024) |
$7,500 |
$80,000 |
*Source: Fueleconomy.gov; Data accurate as of 2/2/24.
