If you’re in the market for a new car this year and considering an electric vehicle, the government has just issued an updated list of the 22 options (including 2023 models) available for the electric vehicle tax credit.
The EV tax credit is part of the incentives offered in the Inflation Reduction Act. Passed in August 2022, the sweeping legislation aimed to put money back into Americans’ pockets while promoting environmentally-friendly strategies. As such, part of the provisions is allowing up to $7,500 in tax credits for new EVs and up to $4,000 for used EVs, which the White House said will help families “save $950 a year.”
Though there has been some confusion on eligibility and rollout as the new law takes effect, the IRS released new information at the start of 2023 sharing an initial list of vehicles that will be part of the program. “Qualified Manufacturers of the vehicles listed below have indicated that the vehicles are currently eligible for a credit provided other requirements are met. Check back for additions to this list,” said the release on the IRS site.
Kelley Blue Book has compiled the current list of eligible vehicles, along with MSRP limits, as follows:
- 2023 Audi Q5 TFSI e Quattro PHEV ($80,000)
- 2021-2023 BMW 330e ($55,000)
- 2021-2023 BMW X5 eDrive 45e ($80,000)
- 2022-2023 Ford Escape PHEV ($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 EV ($55,000)
- 2022-2023 Chevrolet Bolt EUV ($55,000)
- 2022-2023 Cadillac Lyriq ($55,000)
- 2021-2023 Nissan Leaf ($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 ($55,000)
- 2022-2023 Tesla Model Y 7-Seat Variant ($80,000)
- 2023 Volkswagen ID 4 ($55,000)
- 2022 Volvo S60 PHEV ($55,000)
Vehicles must be purchased as of January 1, 2023 or later, and there are certain income limitations that need to be met in order to get the clean vehicle tax credit. Eligible parties must have an adjusted gross income of $150,000 or less for single filers, $225,000 for head of household filers and $300,000 for joint or married couple filers.
As noted in the MSRPs in the list above, there are caps on the retail values of the models that are eligible. EV trucks and SUVs are eligible up to $80K, while cars and sedans are eligible up to $55K.
The other stipulation is that the EV must have been assembled in North America, which is why models like those from Hyundai and Kia are not able to qualify at the moment, even though they meet the MSRP caps — their cars are assembled in Asia. But as Kelly Blue Book noted, that could change in the future. “The companies have joined a list of automakers moving some production to the U.S. to ensure their customers can qualify for the rebate.”
The article also clarified this new list is not final by any means, and more additions could be added throughout 2023. “Several manufacturers haven’t provided the IRS with enough information for it to make a determination on their products,” stated KBB, noting that Hyundai, Jaguar, Kia, Mazda, Mercedes-Benz, Mitsubishi, Subaru, and Toyota were all not included on the list because, as the IRS noted, “this manufacturer has entered into a written agreement with us to become a ‘qualified manufacturer’ but hasn’t yet submitted a list of specific makes and models that are eligible.” It’s suggested to keep checking the IRS website for the latest updates.
And if you want an even better deal on a new electric vehicle, GOBankingRates shared the best months to buy a vehicle are May, October, November and December — so there’s still some time to do research into the best model.
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