A 12 months in the past, almost each new electrical automobile and plug-in hybrid in the marketplace certified for a federal tax credit score of as much as $7,500, offered it was manufactured in North America. However the foundations modified in a serious approach in 2024. The brand new 12 months brings large restrictions on which EVs and hybrids get the tax break because the U.S. appears to crack down on battery parts sourced from China.
In different phrases, in the event you had been banking on a tax credit score to assist get you into a brand new electrical automobile or plug-in hybrid for 2024, your record of selections is now smaller and fewer easy than earlier than. Nonetheless, $7,500 is severe cash. It might make the distinction between shopping for and never shopping for an electrical automotive—so it is key to which automobiles are eligible for the tax credit score for EVs in 2024.
Plus, as automakers launch new fashions and alter up their provide chains to adjust to the brand new guidelines over time, we should always see many extra vehicles qualify. The record has already grown this 12 months, with widespread vehicles like the Tesla Mannequin 3 Lengthy Vary regaining eligibility after a brief hiatus. So we’ll make sure to preserve this record up to date with the newest information.
Eligible Automobiles For The EV Tax Credit score In 2024
Here is the complete record of eligible EVs from FuelEconomy.gov, the place you too can examine if a sure automotive qualifies from its VIN:
| Make | Mannequin | Mannequin Yr | Credit score Quantity | MSRP Restrict |
| Acura | ZDX | 2024 | $7,500 | $80,000 |
| Cadillac | Lyriq | 2024-2025 | $7,500 | $80,000 |
| Chevrolet | Blazer EV | 2024-2025 | $7,500 | $80,000 |
| Chevrolet | Bolt EV | 2022–2023 | $7,500 | $55,000 |
| Chevrolet | Bolt EUV | 2022–2023 | $7,500 | $55,000 |
| Chevrolet | Equinox EV | 2024-2025 | $7,500 | $80,000 |
| Chevrolet | Silverado EV | 2025 | $7,500 | $80,000 |
| Ford | F-150 Lightning (Prolonged Vary Battery) | 2022–2025 | $7,500 | $80,000 |
| Ford | F-150 Lightning (Commonplace Vary Battery) | 2022–2025 | $7,500 | $80,000 |
| Honda | Prologue | 2024 | $7,500 | $80,000 |
| Nissan | Leaf S | 2024 | $3,750 | $55,000 |
| Nissan | Leaf SV Plus | 2024 | $3,750 | $55,000 |
| Rivian | R1S Twin Giant | 2023–2024 | $3,750 | $80,000 |
| Rivian | R1S Twin Commonplace | 2024 | $3,750 | $80,000 |
| Rivian | R1S Twin Commonplace+ | 2024 | $3,750 | $80,000 |
| Rivian | R1S Efficiency Twin Commonplace+ | 2024 | $3,750 | $80,000 |
| Rivian | R1S Quad Giant | 2022–2024 | $3,750 | $80,000 |
| Rivian | R1T Twin Giant | 2023–2025 | $3,750 | $80,000 |
| Rivian | R1T Twin Max | 2023–2024 | $3,750 | $80,000 |
| Rivian | R1T Twin Efficiency Giant | 2023 | $3,750 | $80,000 |
| Rivian | R1T Twin Commonplace | 2024 | $3,750 | $80,000 |
| Rivian | R1T Twin Commonplace+ | 2024 | $3,750 | $80,000 |
| Rivian | R1T Efficiency Twin Commonplace+ | 2024 | $3,750 | $80,000 |
| Rivian | R1T Quad Giant | 2022–2024 | $3,750 | $80,000 |
| Tesla | Mannequin 3 Lengthy Vary All-Wheel Drive | 2024 | $7,500 | $55,000 |
| Tesla | Mannequin 3 Lengthy Vary Rear-Wheel Drive | 2024-2025 | $7,500 | $55,000 |
| Tesla | Mannequin 3 Efficiency | 2023–2025 | $7,500 | $55,000 |
| Tesla | Mannequin X All-Wheel Drive | 2023–2025 | $7,500 | $80,000 |
| Tesla | Mannequin Y All-Wheel Drive | 2023–2024 | $7,500 | $80,000 |
| Tesla | Mannequin Y Lengthy Vary All-Wheel Drive | 2025 | $7,500 | $80,000 |
| Tesla | Mannequin Y Lengthy Vary Rear-Wheel Drive | 2024-2025 | $7,500 | $80,000 |
| Tesla | Mannequin Y Efficiency | 2023–2025 | $7,500 | $80,000 |
| Tesla | Mannequin Y Rear-Wheel Drive | 2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 AWD Professional | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 AWD Professional S | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 AWD Professional S Plus | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Professional | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Professional S | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Professional S Plus | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 S | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Commonplace | 2023-2024 | $7,500 | $80,000 |
And here is the record of qualifying plug-in hybrids:
| Make | Mannequin | Mannequin Yr | Credit score Quantity | MSRP Restrict |
| Audi | Q5 PHEV 55 TFSI e quattro | 2023-2024 | $3,750 | $80,000 |
| Audi | Q5 S Line 55 TFSI e quattro | 2023-2024 | $3,750 | $80,000 |
| Chrysler | Pacifica PHEV | 2022-2024 | $7,500 | $80,000 |
| Ford | Escape Plug-in Hybrid | 2022-2025 | $3,750 | $80,000 |
| Jeep | Grand Cherokee PHEV 4xe | 2022-2024 | $3,750 | $80,000 |
| Jeep | Wrangler PHEV 4xe | 2022-2024 | $3,750 | $80,000 |
| Lincoln | Corsair Grand Touring | 2022-2024 | $3,750 | $80,000 |
Undoubtedly not an enormous record. And one which’s lacking some heavy hitters just like the Hyundai Ioniq 5 and Ford Mustang Mach-E. So what provides right here, precisely? That requires a little bit of a historical past lesson.
The longstanding EV tax credit score was revised and modernized as a part of the Inflation Discount Act, which handed in 2022. That laws had various targets—together with presumably conflicting ones—like encouraging native manufacturing and lessening China’s iron grip on the battery provide chain. (The tax credit even have limits primarily based on a purchaser’s annual earnings and the value of the automobile in query to maintain these from simply being luxurious items to rich drivers.)
The brand new credit went into impact in January of final 12 months. However over the next months, the record of qualifying automobiles grew to become narrower and narrower, prioritizing batteries and battery parts made in North America as nicely. Now, the foundations stipulate that beginning in 2024 any automobile containing battery parts from what the federal government calls a “overseas entity of concern” can be excluded from receiving tax credit. The so-called “FEOC” guidelines just about instantly goal China, and on condition that nation’s utter dominance of the battery provide chain, a number of new vehicles get ignored.
On the plus aspect, it is essential to notice that leasing will nonetheless get you the complete tax credit score no matter the place the automotive was made, a loophole that has vastly benefitted overseas producers like Kia and Hyundai. Moreover, the credit now apply on the level of sale, that means you get an instantaneous value lower on these vehicles with out having to attend for tax season.
These point-of-sale rebates have proved mighty widespread. To this point this 12 months, EV patrons have acquired over $1 billion in incentives for some 150,000 automotive purchases, in response to the U.S. Treasury Division.
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(This information was final up to date on December 1, 2024)
