If you're planning to buy or lease a new electric vehicle or fuel cell vehicle this year, here's what you need to know about federal tax credits.  The information comes from the Internal Revenue Service's EV and FCV tax credit guidelines for 2023.

According to the guidelines, if you buy or place in service a new, qualified, plug-in EV or FCV on January 1st or later and meet certain income limitations, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.

On its website the IRS lists qualified manufacturers who have indicated that the vehicles are currently eligible for a credit, provided other requirements are met.  (We've shared the current list as of publishing time below.  Check back for additions.)

Note, that vehicles purchased in 2022 or before, credit eligibility was determined under different criteria.  If you need to refresh yourself on the rules, click here.

2023 Guidelines

North America Final Assembly and MSRP Requirements

Vehicle make/models that appear in the list below do NOT automatically qualify. They must also: 

• Have undergone final assembly in North America 
• Not exceed a manufacturer suggested retail price (MSRP) of
• $80,000 for vans, sport utility vehicles and pickup trucks
• $55,000 for other vehicles

To see if a specific vehicle meets the assembly requirements:

• Note the vehicle’s Vehicle Identification Number (VIN) 
• Go to the Department of Energy's page on Electric Vehicles with Final Assembly in North America, found here.

Use the VIN Decoder tool under "Specific Assembly Location Based on VIN".

Find a list of Qualified Vehicles on the IRS website here or look at our list below. Note that some automakers listed have entered into a written agreement with the IRS to become a "qualified manufacturer" but have not yet submitted a list of specific makes and models that are eligible.  

Tax Code Updates

Some changes to the tax code were also announced just before the New Year. Changes that could impact buyers include:

• LEASED ELECTRIC VEHICLES ONLY: The U.S. Treasury Department determined that electric vehicles leased by consumers starting Jan. 1 can qualify for up to $7,500 in clean vehicle tax credits, a decision that makes those vehicles assembled outside North America eligible. The announcement is good news for many car companies that earlier this earlier lobbied for approval to use the commercial electric vehicle tax credit to boost consumer EV access. Automakers said the credit could be used to reduce leasing prices, however, vehicles made outside North America are not eligible when purchased, only leased.
• INFLATION REDUCTION ACT IMPACTS: The Inflation Reduction Act lifts the 200,000-vehicle per manufacturer cap that had made Tesla and General Motors ineligible for the $7,500 tax credits starting January 1, 2023.  Both companies had surpassed the 200,000 unit limit previously.
• MORE CHANGES COMING: The IRS says there will be more changes to the new rules coming in March, but we are not sure what all it will entail.  Insiders think there is a good chance many of the EVs that qualify today may not after the March, 2023 rules are enacted.

Clean Vehicle Rebate

***Note: there are no vehicle lists yet for the following automakers:  General Motors, Jaguar, Kia, Mazda, Mercedes-Benz, Mitsubishi, Proterra Operating Company, and Subaru.  They have entered into a written agreement with the IRS to become a "qualified manufacturer", but have not yet submitted a list of specific makes and models that are eligible.  ***

AUDI

Bentley

BMW North America

Ford

Hyundai

Nissan

Stellants (Jeep, Chrysler, Fiat Brands)

Toyota

Volkswagen

Volvo

Photo Credit:  Nissan