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What EVs qualify for the federal $7,500 tax credit score?

Key Takeaways

  • Clear Car Credit score provides tax breaks for eligible EVs, based mostly on qualification standards like meeting location and buy yr.
  • Making use of for the credit score includes submitting Type 8936 with tax returns or coordinating credit score switch by the dealership. Eligibility varies for various EV varieties and buy years.


The longer term is wanting electrical, and autos are on the forefront of the revolution. Certainly, 2024 is the yr for a whole fleet of new EV models. And whereas we love electrical automobiles for his or her clean rides, quick acceleration, and power effectivity, the true winner is the surroundings. EVs have the potential to cut back world carbon emissions, and to help within the transition, the US authorities provides incentives with substantial tax breaks. Referred to as the Clean Vehicle Credit, it is as excessive as $7,500.

You might also have the ability to apply the credit score to the ultimate value of your car by the dealership. It is like a reduction backed by the federal government, and it circumnavigates the tax return snafu. However not each EV is eligible.

Figuring out in case your EV qualifies is difficult. For one, there are a number of kinds of EVs: all-electric, plug-in hybrids, and fuel-cell fashions. Every kind has its personal {qualifications} and credit score quantities. To complicate issues additional, your eligibility relies on the yr the car was bought, amongst different stipulations.


The eligible EVs are damaged down into three varieties:

  • New EVs bought in 2023 or after
  • New EVs bought earlier than 2023
  • Pre-owned EVs bought in 2023 or after

To assist of us navigate the bureaucratic jargon, I’ve simplified the small print that will help you discover out in case your EV qualifies for the credit score. Whether or not you are buying a brand new EV or attempting to get the Clear Car Credit score on one you already purchased, this information ought to assist. I’ve additionally compiled an entire checklist of eligible car fashions for the primary kind — new EVs bought in 2023 or after.


The stipulations for the Clear Car Credit score

There are just a few obstacles to beat for an EV to be eligible.

Bought your EV from a dealership, not a non-public vendor.

According to the IRS, “on the time of sale, a vendor should provide you with details about your car’s {qualifications}. Sellers should additionally register on-line… If they do not, your car will not be eligible.”

When you’re trying to purchase, be certain that to inquire on the dealership concerning the Clear Car Credit score. They will most certainly offer you all the data you want and enable you to by the method of making use of.


Remaining meeting of your EV will need to have occurred in North America.

In any other case, your EV is not eligible for the Clear Car Credit score. In accordance with the US Department of Energy (DOE), “to be eligible… a car will need to have undergone remaining meeting in North America. Typically, North America contains the US and Puerto Rico, Canada, and Mexico.”

If you do not know the place your EV was assembled, don’t be concerned. The DOE has a Vehicle Identification Number (VIN) lookup tool to search out out the place your car was final assembled.

The VIN is the code stamped in your automobile’s dashboard, and it is 17 characters lengthy. Enter your VIN code into the lookup software that we linked to above, and it’ll let you know the place your automobile was assembled.

Solely pre-owned EVs bought in or after 2023 and brand-new EVs are eligible

That is vital for these trying to purchase a pre-owned EV, for the reason that regulation just lately modified to exclude pre-owned EVs bought earlier than 2023.


Your adjusted gross revenue cannot be higher than a certain quantity

  1. New EVs bought in or after 2023: In accordance with the US Department of Energy, “Your modified adjusted gross revenue (AGI) could not exceed $300,000 for married {couples} submitting collectively, $225,000 for heads of households, [and] $150,000 for all different filers.”
  2. Pre-owned EVs bought in or after 2023: For tax credit to use, according to the US DOE, “Your modified adjusted gross revenue (AGI) could not exceed $150,000 for married submitting collectively, $112,500 for heads of households, [and] $75,000 for all different filers.”
  3. New EVs bought earlier than 2023: For tax credit for autos bought previous to 2023, the DOE doesn’t list any income limits.

In case your EV fulfills the above stipulations, you may proceed with our information.

Tesla Model YPurchased a brand new EV in 2023 or later? Test this checklist to see in case you qualify.

When you bought an EV in 2023 or after, you could be eligible for the Clear Car Credit score. This checklist comprises the car fashions that meet the above stipulations in addition to their most credit score quantities. Nonetheless, a spot on this checklist is not a assure. The dealership is chargeable for confirming the eligibility and offering a time-of-sale report.


New EVs positioned into service within the yr 2024

Maker

Mannequin

Mannequin Yr

Credit score Quantity

MSRP Restrict

Audi

Q5 PHEV 55 TFSI e quattro

2023–2024

$3,750

$80,000

Q5 S Line 55 TFSI e quattro

2023–2024

$3,750

$80,000

Cadillac

Lyriq

2024

$7,500

$80,000

Chevrolet

Bolt EUV

2022–2023

$7,500

$55,000

Bolt EV

2022–2023

$7,500

$55,000

Chrysler

Pacifica PHEV

2022–2024

$7,500

$80,000

Ford

Escape Plug-in Hybrid

2022–2024

$3,750

$80,000

F-150 Lightning (Prolonged Vary Battery)

2022–2024

$7,500

$80,000

F-150 Lightning (Commonplace Vary Battery)

2022–2024

$7,500

$80,000

Honda

Prologue

2024

$7,500

$80,000

Jeep

Grand Cherokee PHEV 4xe

2022–2024

$3,750

$80,000

Wrangler PHEV 4xe

2022–2024

$3,750

$80,000

Lincoln

Corsair Grand Touring

2022–2024

$3,750

$80,000

Nissan

Leaf S

2024

$3,750

$55,000

Leaf SV Plus

2024

$3,750

$55,000

Rivian

R1S Twin Massive

2023–2024

$3,750

$80,000

R1S Quad Massive

2023–2024

$3,750

$80,000

R1T Twin Massive

2023–2024

$3,750

$80,000

R1T Twin Max

2023–2024

$3,750

$80,000

R1T Quad Massive

2023–2024

$3,750

$80,000

Tesla

Mannequin 3 Efficiency

2023–2024

$7,500

$55,000

Mannequin X Lengthy Vary

2023–2024

$7,500

$80,000

Mannequin Y All-Wheel Drive

2023–2024

$7,500

$80,000

Mannequin Y Efficiency

2023–2024

$7,500

$80,000

Mannequin Y Rear-Wheel Drive

2024

$7,500

$80,000

Volkswagen

ID.4 AWD Professional

2023–2024

$7,500

$80,000

ID.4 AWD Professional S

2023–2024

$7,500

$80,000

ID.4 AWD Professional S Plus

2023–2024

$7,500

$80,000

ID.4 Professional

2023–2024

$7,500

$80,000

ID.4 Professional S

2023–2024

$7,500

$80,000

ID.4 Professional S Plus

2023–2024

$7,500

$80,000

ID.4 S

2023–2024

$7,500

$80,000

ID.4 Commonplace

2023–2024

$7,500

$80,000


Supply: US Department of Energy (present as of March 14, 2024).

New EVs positioned into service between January 1st, 2023 and April 17, 2023

Maker

Mannequin

Mannequin Yr

Credit score Quantity

MSRP Restrict

Audi

Q5 PHEV 55 TFSI e quattro

2023–2024

$3,750

$80,000

Q5 S Line 55 TFSI e quattro

2023–2024

$3,750

$80,000

BMW

X5 xDrive50e

2024

$3,750

$80,000

Cadillac

Lyriq

2023–2024

$7,500

$80,000

Chevrolet

Blazer

2024

$7,500

$80,000

Bolt

2022–2023

$7,500

$55,000

Bolt EUV

2022–2023

$7,500

$55,000

Equinox

2024

$7,500

$80,000

Silverado

2024

$7,500

$80,000

Chrysler

Pacifica PHEV

2022–2024

$7,500

$80,000

Ford

E-Transit

2022–2023

$3,750

$80,000

Escape Plug-in Hybrid

2022–2023

$3,750

$80,000

F-150 Lightning (Prolonged Vary Battery)

2022–2023

$7,500

$80,000

F-150 Lightning (Commonplace Vary Battery)

2022–2023

$7,500

$80,000

Mustang Mach-E (Prolonged Vary Battery)

2022–2023

$3,750

$80,000

Mustang Mach-E (Commonplace Vary Battery)

2022–2023

$3,750

$80,000

Honda

Prologue

2024

$7,500

$80,000

Jeep

Grand Cherokee PHEV 4xe

2022–2024

$3,750

$80,000

Wrangler PHEV 4xe

2022–2024

$3,750

$80,000

Lincoln

Aviator Grand Touring

2022–2023

$7,500

$80,000

Corsair Grand Touring

2022–2023

$3,750

$80,000

Nissan

Leaf S

2024

$3,750

$55,000

Leaf SV Plus

2024

$3,750

$55,000

Rivian

R1S Twin Massive

2023–2024

$3,750

$80,000

R1S Quad Massive

2022–2024

$3,750

$80,000

R1T Twin Massive

2023–2024

$3,750

$80,000

R1T Twin Max

2023–2024

$3,750

$80,000

R1T Quad Massive

2022–2024

$3,750

$80,000

Tesla

Cybertruck All-Wheel Drive

2024

$7,500

$80,000

Mannequin 3 Lengthy Vary All-Wheel Drive

2023

$7,500

$55,000

Mannequin 3 Efficiency

2022–2023

$7,500

$55,000

Mannequin 3 Commonplace Vary Rear Wheel Drive

2022–2023

$7,500

$55,000

Mannequin X Lengthy Vary

2023

$7,500

$80,000

Mannequin Y All-Wheel Drive

2022–2023

$7,500

$80,000

Mannequin Y Lengthy Vary All-Wheel Drive

2022–2023

$7,500

$80,000

Mannequin Y Efficiency

2022–2023

$7,500

$80,000

Mannequin Y Rear-Wheel Drive

2023

$7,500

$80,000

Volkswagen

ID.4 AWD Professional

2023

$7,500

$80,000

ID.4 AWD Professional S

2023

$7,500

$80,000

ID.4 AWD Professional S Plus

2023

$7,500

$80,000

ID.4 Professional

2023

$7,500

$80,000

ID.4 Professional S

2023

$7,500

$80,000

ID.4 Professional S Plus

2023

$7,500

$80,000

ID.4 S

2023

$7,500

$80,000

ID.4 Commonplace

2023

$7,500

$80,000


Supply: US Department of Energy (present as of March 14, 2024)

New EVs positioned into service between April 18th, 2023 and December thirty first, 2023

Maker

Mannequin

Mannequin Yr

Credit score Quantity

MSRP Restrict

Audi

Q5 TFSI e Quattro (PHEV)

2023

$7,500

$80,000

BMW

330e

2021–2023

$5,836

$55,000

X5 xDrive45e

2021–2023

$7,500

$80,000

X5 xDrive50e

2024

$7,500

$80,000

Cadillac

Lyriq

2022–2024

$7,500

$80,000

Chevrolet

Bolt

2022–2023

$7,500

$55,000

Bolt EUV

2022–2023

$7,500

$55,000

Silverado EV

2024

$7,500

$80,000

Chrysler

Pacifica PHEV

2022–2023

$7,500

$80,000

Ford

E-Transit

2022–2023

$7,500

$80,000

Escape Plug-In Hybrid

2022

$6,843

$80,000

Escape Plug-In Hybrid

2023

$6,885

$80,000

F-150 Lightning

2022–2023

$7,500

$80,000

Mustang Mach-E

2022–2023

$7,500

$80,000

Genesis

Electrified GV70

2023–2024

$7,500

$80,000

Jeep

Grand Cherokee 4xe

2022–2023

$7,500

$80,000

Wrangler 4xe

2022–2023

$7,500

$80,000

Lincoln

Aviator Grand Touring

2022–2023

$6,534

$80,000

Corsair Grand Touring

2022

$6,843

$80,000

Corsair Grand Touring

2023

$6,885

$80,000

Mercedes-Benz

EQE 350 SUV

2023

$7,500

$80,000

Nissan

Leaf S

2021–2023

$7,500

$55,000

Leaf S Plus

2021–2022

$7,500

$55,000

Leaf SL Plus

2021–2022

$7,500

$55,000

Leaf SV

2021–2022

$7,500

$55,000

Leaf SV Plus

2021–2023

$7,500

$55,000

Rivian

R1S

2022–2023

$7,500

$80,000

R1T

2022–2023

$7,500

$80,000

Tesla

Mannequin 3 Lengthy Vary

2022–2023

$7,500

$55,000

Mannequin 3 Efficiency

2022–2023

$7,500

$55,000

Mannequin 3 RWD

2022–2023

$7,500

$55,000

Mannequin Y All-Wheel Drive

2022–2023

$7,500

$80,000

Mannequin Y Lengthy Vary

2022–2023

$7,500

$80,000

Mannequin Y Efficiency

2022–2023

$7,500

$80,000

Volkswagen

ID.4

2023

$7,500

$80,000

ID.4 AWD Professional

2023

$7,500

$80,000

ID.4 AWD Professional S

2023

$7,500

$80,000

ID.4 Professional

2023

$7,500

$80,000

ID.4 Professional S

2023

$7,500

$80,000

ID.4 S

2023

$7,500

$80,000

Volvo

S60 (PHEV)

2022

$5,419

$55,000

S60 Prolonged Vary

2022

$7,500

$55,000

S60 T8 Recharge (Prolonged Vary)

2023

$7,500

$55,000


Supply: US Department of Energy (present as of March 14, 2024)

A Rivian R1S and R1T drive along a mountain roadIf my EV qualifies for a tax credit score, how do I apply for it?

In case your EV qualifies, making use of for the credit score is as straightforward as finishing and attaching Type 8936 (Certified Plug-In Electrical Drive Motor Car Credit score) to your yearly tax returns. You may obtain the shape and its directions from the IRS’s website here. When you use a tax legal professional or tax submitting service, be certain that to request this type when submitting your paperwork.

We strongly suggest guaranteeing that you just qualify for the Clear Car Credit score earlier than continuing by utilizing the above assets or navigating the
US DOE’s website on the subject
. In any other case, in case you do not qualify, you will be losing your time (and doubtlessly cash paid to a tax legal professional).

You might also have the ability to apply the credit score on to the acquisition by the dealership. This mainly works as a credit score switch by which the dealership assumes the credit score. To go this route, you will must coordinate the switch with the dealership. In both case, Type 8936 remains to be required.


F150 Lightning

Supply: Ford

Purchased a brand new EV earlier than 2023? You continue to may qualify.

When you bought a brand new EV from a dealership earlier than 2023 and by no means utilized for the Clear Car Credit score, you may nonetheless have an opportunity. This class is split into two time intervals:

EVs bought between August seventeenth, 2022 and December thirty first, 2022

  • For EVs bought on this interval, the DOE provides a complete list of candidates here.
  • In case your EV seems on the checklist, you need to attain out to the dealership the place you obtain it for additional info.
  • Not each EV on the checklist is essentially eligible, since different components just like the date you set it into service and the ultimate meeting location come into play.

EVs bought earlier than August seventeenth, 2022

  • EVs bought earlier than this date shouldn’t have the identical necessities as these above, for the reason that new guidelines took impact on August seventeenth, 2022.
  • The main points for EVs bought on this time interval may be discovered on the DOE website here.

The Clear Car Credit score solely works for the tax return of the identical yr you obtain the automobile. In different phrases, you may’t apply for it in your 2024 tax returns in case you bought your EV in 2022. As an alternative, you will must amend your tax return of the identical yr as your EV buy in an effort to connect
Form 8936
to the corresponding yr.


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