Register now for better personalized quote!

The new EV tax credit is complicated. Here's who qualifies

Sep, 07, 2022 Hi-network.com
Lucid

Electric vehicle (EV) tax credit policies got a major overhaul in August with the Inflation Reduction Act. From January 2023 onwards, your EV tax credit is determined by your income, the price of the car you want, and where it came from.

What income range qualifies for the new EV tax credit?

Tax credits now only apply to buyers with incomes less than or equal to$150,000 for single filers,$225,000 for heads of household, and$300,000 for joint filers. 

Also: The 5 best electric cars: Plus, the cheapest EV available 

What car price range qualifies?

The price of the new EV purchased must be less than$55,000 for cars and below$80,000 for SUVs, pickup trucks, and vans in order to qualify. 

Do used EVs qualify for the tax credit?

The new credit expands eligibility by including used EVs, as well as new ones -- if you buy a used EV, you could receive a credit of up to$4,000. 

What are the EV manufacturer limitations?

If you want to purchase an EV with an up to$7,500 tax credit, you can only consider EVs assembled in North America and powered by batteries with materials sourced from the US or its free trade partners. Essentially, your new electric car needs a "Made in America" stamp.

These provisions limit the manufacturers that qualify for the credit. According to PBS, battery materials processed in China power the vehicles of quite a few American EV manufacturers, including Tesla. The new credit also raises the bar for plug-in hybrids or PHEVs: TechCrunch notes that new PHEVs need 7 kWh battery packs in order to qualify. One of the aims of the act is to make electric cars more affordable, but fewer models of EVs meet all of these parameters. 

Also: I loved driving the Hyundai Ioniq 5 and Kia EV6. Here's why I can't buy one

How do I claim an EV tax credit?

Instead of financing the full price of the car and then getting money back when filing taxes, buyers can immediately purchase the car at the dealership with the credit deducted from the price. 

How many times can I claim the EV tax credit?

According to Bankrate, two people in the same household can separately claim the credit if they buy two EVs individually. If they buy an EV together, the credit only applies once. 

How do I get a$7,500 EV tax credit?

Starting January 2023, the dealership should have the tax credit already factored into the price. You get the credit included with the price of the EV.

Here's a list of vehicles that qualify for the tax credit, taken directly from the Department of Energy website. If there's a "Manufacturer sales cap met" note, that means that the manufacturer reached their limit of EV credits used and isn't currently eligible. These are all of the EVs assembled in North America.

Model Year

Vehicle

Note

2022

Audi Q5


2022

BMW 330e


2022

BMW X5


2022

Chevrolet Bolt EUV

Manufacturer sales cap met

2022

Chevrolet Bolt EV

Manufacturer sales cap met

2022

Chrysler Pacifica PHEV


2022

Ford Escape PHEV


2022

Ford F Series


2022

Ford Mustang MACH E


2022

Ford Transit Van


2022

GMC Hummer Pickup

Manufacturer sales cap met

2022

GMC Hummer SUV

Manufacturer sales cap met

2022

Jeep Grand Cherokee PHEV


2022

Jeep Wrangler PHEV


2022

Lincoln Aviator PHEV


2022

Lincoln Corsair Plug-in


2022

Lucid Air


2022

Nissan Leaf


2022

Rivian EDV


2022

Rivian R1S


2022

Rivian R1T


2022

Tesla Model 3

Manufacturer sales cap met

2022

Tesla Model S

Manufacturer sales cap met

2022

Tesla Model X

Manufacturer sales cap met

2022

Tesla Model Y

Manufacturer sales cap met

2022

Volvo S60


2023

BMW 330e


2023

Bolt EV

Manufacturer sales cap met

2023

Cadillac Lyriq

Manufacturer sales cap met

2023

Mercedes EQS SUV


2023

Nissan Leaf


Recommends

The 100+ best October Prime Day deals you can buy: Live updatesThe 5 best VPN services (and tips to choose the right one for you)The best Android phones you can buy (including a surprise pick)The best robot vacuum and mop combos (and if they're worth the money)
  • The 100+ best October Prime Day deals you can buy: Live updates
  • The 5 best VPN services (and tips to choose the right one for you)
  • The best Android phones you can buy (including a surprise pick)
  • The best robot vacuum and mop combos (and if they're worth the money)

tag-icon Hot Tags : Our process Innovation Transportation Electric Vehicles

Copyright © 2014-2024 Hi-Network.com | HAILIAN TECHNOLOGY CO., LIMITED | All Rights Reserved.