Which EVs Still Qualify for Federal Tax Credits?

Matt Posky
by Matt Posky

With the guidance having come in on the United States’ updated EV tax credit scheme, outlined in the so-called Inflation Reduction Act, we now have a pretty good idea of which electric vehicles still qualify. Stringent content requirement stipulations have certainly culled the roster, however, and helped explain why the automotive sector didn’t have any issues with the government taking its sweet time in making decisions regarding content quotas.

There are only about a dozen models that qualify for the full $7,500 tax credit after April 18th, with a few more being eligible for a partial credit of $3,750.

Vehicles approved by the Internal Revenue Service (IRS) can be found by going to the fuel-economy offshoot of the Environmental Protection Agency (EPA) website. But it’s kind of a clunky interface so we’re just going to list them here for you.

Starting Tuesday, here are the all-electric and plug-in hybrid (PHEV) models that are eligible to receive the full $7,500 federal credit: Chevrolet Bolt and Bolt EUV (2022-23); Chrysler Pacifica Plug-in Hybrid (2022-23); Ford F-150 Lightning (2022-23); Lincoln Aviator Grand Touring (2022-23); Tesla Model Y Performance (2022); Tesla Model Y (2022-23); Tesla Model 3 Performance (2022-23); Cadillac Lyriq (2023-2024); Chevrolet Blazer (2024); Chevrolet Equinox (2024); Chevrolet Silverado (2024).

And here are the models that managed to qualify for one of the $3,750 credits: Ford Escape PHEV (2022-23); Ford Mustang Mach-E (2022-23); Ford E-Transit (2022-23); Grand Cherokee Plug-in Hybrid 4xe (2022-23); Jeep Wrangler Plug-in Hybrid 4xe (2022-23); Lincoln Corsair Grand Touring (2022-23); Tesla Model 3 Standard Range Rear-Wheel Drive (2022-23).

We recently covered why some models wouldn’t make the cut in our breakdown of why Ford was celebrating how many of its models would still qualify under the updated guidance. But it basically comes down to whether or not they can qualify for the two $3,750 credits.

The first of those is broken down into electrified automobiles that have at least 40 percent of the battery's critical mineral values extracted and/or processed within the U.S. or in a country where the U.S. has a free-trade agreement. Alternatively, the batteries can be produced from materials recycled in North America.

The other $3,750 stems from whether or not at least half the value of the EV's battery components were made (or assembled) inside North America. This was allegedly done to help support localized production after the automotive unions realized electric vehicles meant fewer hands-on assembly lines and the prospect of further labor outsourcing.

That also means a bunch of foreign-made vehicles no longer qualify. Formerly eligible models from BMW, Audi, Volkswagen, and Volvo have been bumped off the list. Even the humble Nissan Leaf has been removed. Though, perhaps more interesting, is seeing Rivian's electric trucks (the R1S and R1T) losing their eligibility — despite the vehicles themselves being assembled in Illinois.

But there are a few more hoops to jump through if you want the government to offer some cash back on your EV purchase. Eligible vans, sport utility vehicles, and pickup trucks have to come in under $80,000, while other passenger models need to retail below $55,000. Those filing for the credit also need to have a modified adjusted gross income (AGI) below $300,000 for married couples filing jointly, $225,000 for heads of households, and $150,000 for everybody else.

There are other considerations taken into account (kilowatt requirements, weight, etc.) that we don’t need to get into here. But you can find them on the IRS website.

Keep in mind that the stringency of the content requirement rules increases annually. So a vehicle that qualifies through the 2023 model year may not be eligible in 2024. There are even forthcoming provisions that would eliminate credits for vehicles using any battery components stemming from a “foreign entity of concern,” which basically means any country the U.S. government decides it doesn’t like that year.

It’s a very different situation from the 200,000-unit-per-automaker sales quota that has been supplanted. Interestingly, only General Motors and Tesla managed to hit those caps and they’re some of the biggest winners under the new scheme as well.

[Image: Jan Hendrik/Shutterstock]

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Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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8 of 37 comments
  • Jkross22 Jkross22 on Apr 18, 2023

    Do the subsidies get taken out of the kid's pay who are mining the lithium for batteries? How about other slave labor being used to make EVs? Or the environmental impact of these things?

    Funny how externalities are rarely discussed by EV advocates.

    These people aren't as environmentally conscious as they think they are. The good news is that if they ever decide to be honest about EVs, they could always re-engage in a different cult, say working with pharmaceutical companies or large banks or.... oil companies.

  • Louis Faiella Louis Faiella on Apr 18, 2023

    How many buyers get the car and find out at tax time that they dont qualify plus they paid sales tax on the phantom rebate!!

    • See 1 previous
    • VoGhost VoGhost on Apr 19, 2023

      Yeah, I wouldn't recommend anyone get their tax advice from a car dealer.

  • Kwik_Shift_Pro4X Of course the whole image isn't allowed, but the important point is there.
  • Buickman let's see...spend Billions remodeling stores, often unnecessarily, then move to online sales.demand further useless capital expenditures, or take a check for your sign.stair steps that squeeze smaller stores, taking losses to hit the Big Bucks.promote consolidation reducing competition and opposition.Factory Owned stores didn't work, no skin in the game. Cash for Clunkers was a fiasco. the Market is a beautiful thing when left alone.one might suppose a major industry like ours would have leaders who produced results other than lost market share, Red Ink, and dwindling at best share price.dollingerdifference.com
  • Ger65690267 They already use the GR-S badge on trucks and SUVs internationally. Such as the GR-S Hilux and Fortuner in the Philippines. Essentially a cosmetic and suspension package.
  • Lorenzo Ford's sales were $172.6 billion with a net after tax profit of $4.33 billion, AFTER losing over $5 billion on EVs. The industry average profit is 7.5% of revenue, with Ford usually about 6%.On $172.6 billion, they should have made $10.34 billion at 6%, or $12.9 billion if they made the 7.5% industry average, so they're underperforming, even if they hadn't lost $5 billion on EVs. But the fact remains that they're still making a profit.
  • Zipper69 " The governor recently approved a bill that gives her the power to remove incentives from companies that recognize unions"Political thumb on the scales...It's the MAGArat politicians in the State that fight unions and spend money to propagandize that a union is just one step from resurrecting Joseph Stalin as their next Governor.Pitiful. Still using the same phony arguments from McCarthy in the 1950's that continues to lock us out of normalizing relations with Cuba.