A number of electric vehicles are now qualified for the $7,500 tax credit that was enacted into law as part of the $430 billion Inflation Reduction Act a year ago as of January 1.
The Internal Revenue Services has published a growing list of automobiles earlier this week that could be eligible for the tax credit, reducing the amount some vehicle buyers may be eligible for.
A Lot Of Details Are Still Unclear A Of The Moment
Many new and prospective customers are uncertain about whether they qualify for the federal tax credit for electric vehicles as sales of electric vehicles continue to soar.
However, when their manufacturer reached the previous credit's sales threshold of 200,000 vehicles, certain new models on the list lost their eligibility.
The Verge writes that because of this, others recently moved their manufacturing to North America, in hopes of fulfilling one of the essential requirements of the law.
The Treasury Department and the IRS released some new regulations on the Inflation Reduction Act's (IRA) EV tax credit, which is good news for automakers and consumers.
The Treasury Department has set a March deadline for the release of guidelines on some of the trickier issues involving the sourcing of battery material, so there are still a lot of unanswered questions.
With that, the Biden administration is under pressure from foreign automakers to give them a piece of the action.
Meanwhile, Senator Joe Manchin (D-WV) is threatening to obstruct implementation in the meantime to stop businesses from taking advantage of loopholes.
However, Elon Musk, CEO of Tesla, is complaining that it's "messed up" because some Tesla Model Y variants that cost more than $80,000 don't qualify yet a number of hybrid Jeeps do.
Read More: Do the Current EVs in the Market Qualify for the Newly Expanded Tax Credits for Electric Vehicles?
Here Is A List Of The Vehicles That Qualify
The Verge provides a list of electric vehicles qualified for the new tax credit, which can be seen below:
|
2023 |
Audi Q5 TFSI e Quattro (PHEV) |
$80,000 |
|
2021, 2022, 2023 |
BMW 330e |
$55,000 |
|
2021, 2022, 2023 |
BMW X5 xDrive45e |
$80,000 |
|
2022, 2023 |
Ford Escape Plug-In Hybrid |
$80,000 |
|
2022, 2023 |
Ford E-Transit |
$80,000 |
|
2022, 2023 |
Ford F-150 Lightning |
$80,000 |
|
2022, 2023 |
Ford Mustang Mach-E |
$55,000 |
|
2022, 2023 |
Lincoln Aviator Grand Touring |
$80,000 |
|
2022, 2023 |
Lincoln Corsair Grand Touring |
$55,000 |
|
2022, 2023 |
Chevrolet Bolt |
$55,000 |
|
2022, 2023 |
Chevrolet Bolt EUV |
$55,000 |
|
2022, 2023 |
Cadillac Lyriq |
$55,000 |
|
2021, 2022, 2023 |
Nissan Leaf S |
$55,000 |
|
2021, 2022 |
Nissan Leaf S Plus |
$55,000 |
|
2021, 2022 |
NIssan Leaf SL Plus |
$55,000 |
|
2021, 2022 |
Nissan Leaf SV |
$55,000 |
|
2021, 2022, 2023 |
Nissan Leaf SV Plus |
$55,000 |
|
2022, 2023 |
Rivian R1S |
$80,000 |
|
2022, 2023 |
Rivian R1T |
$80,000 |
|
2022, 2023 |
Chrysler Pacifica PHEV |
$80,000 |
|
2022, 2023 |
Jeep Wrangler 4xe |
$80,000 |
|
2022, 2023 |
Jeep Grand Cherokee 4xe |
$80,000 |
|
2022, 2023 |
Tesla Model 3 Rear Wheel Drive |
$55,000 |
|
2022, 2023 |
Tesla Model 3 Long Range |
$55,000 |
|
2022, 2023 |
Tesla Model Y All-Wheel Drive - 7 seat variant (3-rows) |
$80,000 |
|
2022, 2023 |
Tesla Model Y Long Range - 7 seat variant (3-rows) |
$80,000 |
|
2022, 2023 |
Tesla Model Y Performance - 7 seat variant (3-rows) |
$80,000 |
|
2022, 2023 |
Tesla Model Y All-Wheel Drive - 5 seat variant (2-rows) |
$55,000 |
|
2022, 2023 |
Tesla Model Y Long Range - 5 seat variant (2-rows) |
$55,000 |
|
2022, 2023 |
Tesla Model Y Performance - 5 seat variant (2-rows) |
$55,000 |
|
2023 |
Volkswagen ID.4 |
$55,000 |
|
2023 |
Volkswagen ID.4 Pro |
$55,000 |
|
2023 |
Volkswagen ID.4 Pro S |
$55,000 |
|
2023 |
Volkswagen ID.4 S |
$55,000 |
|
2023 |
Volkswagen ID.4 AWD Pro |
$80,000 |
|
2023 |
Volkswagen ID.4 AWD Pro S |
$80,000 |
|
2022 |
Volvo S60 (PHEV) |
$55,000 |
|
2022 |
Volvo S60 Extended Range |
$55,000 |
|
2023 |
Volvo S60 T8 Recharge (Extended Range) |
$55,000 |
For now, these are the EVs that qualify, but if further rules were to be implemented, they might significantly cut down the qualifying list.
According to Yahoo Finance, it is important to remember that the IRA's requirements for the consumer tax credit for electric vehicles (EVs) required:
-
vehicles to be below a certain price ($55,000 for cars, $80,000 for SUVs and pickups)
-
buyers' income to be $300K in adjusted gross income or below for joint filers and $150K for single filers
-
a percentage of critical battery materials and battery assembly to be U.S. based
-
final assembly of the vehicle to take place in North America
Related Article: These EVs Qualify for the Upcoming US Federal Tax Credit
