It’s officially 2023 which means the new EV tax credit is now available for U.S. consumers. If you’re wondering what that could mean for you, let’s just say it’s worth looking into! The government is offering up to a $7,500 rebate on select makes and models, making for a pretty sweet deal. Although certain restrictions apply, the tax rebate couldn’t have come at a better time. As electric vehicle sales continue to soar, we suspect many shoppers will take advantage, giving buyers a compelling reason to shop new in the upcoming months. To learn a bit more about the guidelines, here’s a complete look at the most recent list of new clean vehicles that qualify for the EV tax credit.
What cars qualify for EV tax credit?
Automotive experts anticipate this list to grow as carmakers submit their manufacturing data to the federal government. At this time, however, there are 22 vehicles that have received the stamp of approval. Review the vehicles, applicable model years, and price limits below:
Vehicle / Model Year / MSRP limit
- Audi Q5 TFSI e Quattro PHEV / 2023 / $80,000
- BMW 330e / 2021-2023 / $55,000
- BMW X5 eDrive 45e / 2021-2023 / $80,000
- Ford Escape PHEV / 2022-2023 / $80,000
- Ford E-Transit / 2022-2023 / $80,000
- Ford F-150 Lightning / 2022-2023 / $80,000
- Ford Mustang Mach-E / 2022-3023 / $55,000
- Lincoln Aviator Grand Touring / 2022-2023 / $80,000
- Lincoln Corsair Grand Touring / 2022-2023 / $55,000
- Chevrolet Bolt EV / 2022-2023 / $55,000
- Chevrolet Bolt EUV / 2022-2023 / $55,000
- Cadillac Lyriq / 2022-2023 / $55,000
- Nissan Leaf / 2021-2023 / $55,000
- Rivian R1S / 2022-2023 / $80,000
- Rivian R1T / 2022-2023 / $80,000
- Chrysler Pacifica PHEV / 2022-2023 / $80,000
- Jeep Wrangler 4xe / 2022-2023 / $80,000
- Jeep Grand Cherokee 4xe / 2022-2023 / $80,000
- Tesla Model 3 / 2022-2023 / $55,000
- Tesla Model Y 7-Seat Variant / 2022-2023 / $80,000
- Volkswagen ID.4 / 2023 / $55,000
- Volvo S60 PHEV / 2022 / $55,000
With 22 models to choose from, buyers have an exceptional opportunity to invest in an electric model that also fits within federal guidelines. From electric trucks like the Ford F-150 Lightning to flagship electric vehicles like the Nissan Leaf, consumers should be pretty happy (and relieved) to see popular brand names and model years among the list.
However, the variety may not last long…
New enforcements coming in March 2023
Last summer when legislation began falling into place, there was particular attention placed on the procurement of materials. In essence, it was determined a percentage of minerals used for battery production had to be sourced from inside the U.S. or its trade partners in order to qualify for the federal tax rebate. These efforts were intended to reduce the carbon footprint of the automotive industry all while bringing production to a domestic scale.
Even so, with a large number of automakers obtaining batteries outside the U.S., this restriction has caused some concern.
Originally, the requirement of up to 40% of battery minerals sourced from inside the U.S. was to be enacted on January 1st. However, the government postponed this date until March to help manufacturers understand what the guidelines really mean for electric production. By the time March arrives, we anticipate the number of vehicles legally available for the tax credit will decrease drastically until battery production moves in-house or on domestic soil.
Though we are currently in the early stages of understanding how the tax rebate will impact automakers and EV sales, we assume consumers will try to take advantage of the discount when the time comes to switch to an electric alternative. In comparison, some shoppers may be hesitant to use the tax rebate in 2023 with reports showing that in 2024 leads to a better buying scenario. Instead of waiting until tax season to receive the deduction, car buyers will be able to utilize the federal discount on the spot.
All said and done, if you’re looking to branch into the EV department and ditch your gas-guzzling engine, make sure to consider the new tax rebate for your purchase.
Would you like to buy one of the vehicles that qualify for the new tax credit? Tell us which models would be your top choice below!