Confused about what vehicles are now eligible for the Federal EV Tax Credit? In light of new federal regulations that went into effect August 16th, it's easy to be. So here's our quick guide on what happened, what the new laws mean and which vehicles now qualify for the $7,500 Federal Tax Credit for the remainder of 2022, plus some of the changes coming for 2023.
Let's start with how we got here. Last week, President Joe Biden signed a new Inflation Reduction Act. The new legislation, which took effect immediately, restructures electric vehicle tax credits in a number of ways, including:
For the rest of 2022, 21 models remain eligible for the Federal Tax Credit. (EV buyers who entered into a written binding contract to purchase a new qualifying electric before the law was signed August 16th still qualify. Check the IRS guidance on the new regulations here.)
Things change again in 2023. January 1st, GM and Tesla will once again join the EV tax credit party as they'll become once again eligible for the tax credit (under stricter rules). (They are currently not eligible since both automakers have surpassed the 200,000-vehicle cap.)
Also January 1st, new income and vehicle pricing caps go into effect. To qualify for the credit you'll have to make an adjusted gross income of less than $150,000 as a single person, $225K for head of household and $300,000K for joint filers. Qualifying electric vehicles must cost less than $55,000 and electric trucks and SUVs must cost less than $80,000. New sourcing restrictions for automakers go into effect as well in 2023. This pertains to where automakers get their EV battery minerals and components.
Elektrek has a great breakdown of the changes.
The current list below is sourced from the U.S. Department of Energy Alternative Fuels Data Center. It notes that "for some manufacturers, the build location may vary based on the specific vehicle, trim, or the date in the Model Year when it was produced because some models are produced in multiple locations." So even if it's on this list, you'll want to check the VIN to confirm its final assembly location.
Photo: 2023 Nissan LEAF. Credit: Nissan