To qualify for a federal tax credit on electric vehicles, you must buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV) . The credit can be up to $7,500, and it applies to vehicles purchased from 2023 to 2032. However, beginning in 2025, any vehicle with battery minerals or components from a foreign entity of concern are excluded from the tax credit. To qualify for the credit, the EV must have a battery size of at least 7 kWh and a gross vehicle weight rating less than 14,000 pounds. The credit is nonrefundable, so you cant get back more on the credit than you owe in taxes, and you cant apply any excess credit to future tax years. The following are some of the electric vehicles that currently qualify for the federal tax credit:
- 2022-23 Ford F-150 Lightning EV
- 2022-23 Ford Mustang Mach-E EV
- Audi e-tron
- BMW i3
- Chevrolet Bolt EV
- Hyundai Kona Electric
- Kia Niro EV
- Nissan Leaf
- Porsche Taycan
- Tesla Model S
- Tesla Model X
- Tesla Model 3
- Tesla Model Y
Its important to note that not all electric vehicles qualify for the tax credit, and the availability of the credit depends on several factors, including the vehicles MSRP, its final assembly location, battery component and/or critical minerals sourcing, and your modified adjusted gross income (AGI) . Buyers who are interested in the tax credit must do some research to see if the specific vehicle they’re considering qualifies.
