7 Electric Cars Worth Buying That Are Eligible for $7,500 Tax Credit in 2024
Written by
David Nadelle
Edited by
Nicholas Morine
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On the one hand, having electric vehicle (EV) tax credits up to $7,500 for new vehicles and up to $4,000 for pre-owned cars applied at the point of sale is a great incentive for drivers who have yet to fully embrace buying an EV. On the other hand, it’s getting more difficult for consumers to find a vehicle that qualifies for the credits.
As of Jan. 1, the list of EVs eligible for the full $7,500 or the partial $3,750 tax credit has been curtailed. While U.S. manufacturers are striving to produce vehicles that don’t rely on materials sourced from China and other foreign entities of concern, many companies are years away from being able to do so, according to Business Insider. Meanwhile, the Treasury Department’s latest guidance has tightened restrictions when it comes to EV tax credits.
With the government continuing to move the goalposts with vehicle eligibility rules, this has led to a number of EVs that no longer qualify for a full or partial tax credit. As Inside Climate News noted, 43 vehicles qualified last year. For 2024, there’s far fewer.
Which EVs Are Eligible for a Federal Tax Credit?
There are now only seven vehicles that qualify for the full $7,500 federal tax credit, including the economical Chevy Bolt and some versions of the popular Tesla 3. With the credit, buyers are getting a deal models that are still expensive, but many of the EV industry leaders don’t qualify.
- Chevrolet Bolt: 2022 and 2023 model years; MSRP $55,000 or below.
- Chevrolet Bolt EUV: 2022 and 2023 model years; MSRP $55,000 or below.
- Chrysler Pacifica Hybrid PHEV: 2022 through 2024 model years; MSRP $80,000 or below.
- Ford F-150 Lightning: 2022 through 2024 model years; MSRP $80,000 or below.
- Tesla Model 3: 2023 and 2024 model years; MSRP $55,000 or below.
- Tesla Model X: 2023 and 2024 model years; MSRP $80,000 or below.
- Tesla Model Y: All-Wheel Drive (2023 and 2024 model years; MSRP $80,000 or below); Performance (2023 and 2024 model years; MSRP $80,000 or below); and Rear-Wheel Drive (2024 model year only; MSRP $80,000 or below).
Additionally, the following six EVs qualify for a partial tax credit of $3,750 if placed into service between Jan. 1, 2024 and Dec. 31, 2024:
- Ford Escape Plug-In Hybrid: 2022 through 2024 model years; MSRP $80,000 or below.
- Jeep Grand Cherokee 4xe: 2022 through 2024 model years; MSRP $80,000 or below.
- Jeep Wrangler 4xe: 2022 through 2024 model years; MSRP $80,000 or below.
- Lincoln Corsair Grand Touring: 2022 through 2024 model years; MSRP $80,000 or below.
- Rivian R1S: 2022 through 2024 model years; MSRP $80,000 or below.
- Rivian R1T: 2022 through 2024 model years; MSRP $80,000 or below.
Which EVs No Longer Qualify for a Tax Credit?
According to Consumer Reports, Tesla’s more affordable Model 3 rear wheel drive and long range trims will no longer qualify for the EV tax credit.
The Ford Mustang Mach-E and Lincoln Aviator Grand Touring PHEV are also tax credit casualties. The Cadillac Lyriq and Chevy Blazer EV will temporarily lose their eligibility, but it’s hoped that they will regain it at some point in 2024 — along with the Chevrolet Equinox, Silverado EV and GMC Sierra EV.
The Nissan Leaf is still determining eligibility and, according to Consumer Reports, Volkswagen is “optimistic” that 2023 and 2024 ID.4 models will be eligible for a tax credit under the new rules.
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