A yr in the past, practically each new electrical car and plug-in hybrid available on the market certified for a federal tax credit score of as much as $7,500, offered it was manufactured in North America. However the foundations modified in a serious manner in 2024. The brand new yr brings massive restrictions on which EVs and hybrids get the tax break because the U.S. appears to be like to crack down on battery parts sourced from China.
In different phrases, if you happen to have been banking on a tax credit score to assist get you into a brand new electrical car or plug-in hybrid for 2024, your record of decisions is now smaller and fewer simple than earlier than. Nonetheless, $7,500 is severe cash. It may make the distinction between shopping for and never shopping for an electrical automotive—so it is key to which automobiles are eligible for the tax credit score for EVs in 2024.
Plus, as automakers launch new fashions and alter up their provide chains to adjust to the brand new guidelines over time, we should always see many extra automobiles qualify. The record has already grown this yr, with common automobiles like the Tesla Mannequin 3 Lengthy Vary regaining eligibility after a brief hiatus. So we’ll make sure to hold this record up to date with the newest information.
Eligible Automobiles For The EV Tax Credit score In 2024
Here is the complete record of eligible EVs from FuelEconomy.gov, the place you may as well test if a sure automotive qualifies from its VIN:
| Make | Mannequin | Mannequin 12 months | Credit score Quantity | MSRP Restrict |
| Acura | ZDX | 2024 | $7,500 | $80,000 |
| Cadillac | Lyriq | 2024-2025 | $7,500 | $80,000 |
| Chevrolet | Blazer EV | 2024-2025 | $7,500 | $80,000 |
| Chevrolet | Bolt EV | 2022–2023 | $7,500 | $55,000 |
| Chevrolet | Bolt EUV | 2022–2023 | $7,500 | $55,000 |
| Chevrolet | Equinox EV | 2024-2025 | $7,500 | $80,000 |
| Chevrolet | Silverado EV | 2025 | $7,500 | $80,000 |
| Ford | F-150 Lightning (Prolonged Vary Battery) | 2022–2025 | $7,500 | $80,000 |
| Ford | F-150 Lightning (Customary Vary Battery) | 2022–2025 | $7,500 | $80,000 |
| Honda | Prologue | 2024 | $7,500 | $80,000 |
| Nissan | Leaf S | 2024 | $3,750 | $55,000 |
| Nissan | Leaf SV Plus | 2024 | $3,750 | $55,000 |
| Rivian | R1S Twin Giant | 2023–2024 | $3,750 | $80,000 |
| Rivian | R1S Twin Customary | 2024 | $3,750 | $80,000 |
| Rivian | R1S Twin Customary+ | 2024 | $3,750 | $80,000 |
| Rivian | R1S Efficiency Twin Customary+ | 2024 | $3,750 | $80,000 |
| Rivian | R1S Quad Giant | 2022–2024 | $3,750 | $80,000 |
| Rivian | R1T Twin Giant | 2023–2025 | $3,750 | $80,000 |
| Rivian | R1T Twin Max | 2023–2024 | $3,750 | $80,000 |
| Rivian | R1T Twin Efficiency Giant | 2023 | $3,750 | $80,000 |
| Rivian | R1T Twin Customary | 2024 | $3,750 | $80,000 |
| Rivian | R1T Twin Customary+ | 2024 | $3,750 | $80,000 |
| Rivian | R1T Efficiency Twin Customary+ | 2024 | $3,750 | $80,000 |
| Rivian | R1T Quad Giant | 2022–2024 | $3,750 | $80,000 |
| Tesla | Mannequin 3 Lengthy Vary All-Wheel Drive | 2024 | $7,500 | $55,000 |
| Tesla | Mannequin 3 Lengthy Vary Rear-Wheel Drive | 2024-2025 | $7,500 | $55,000 |
| Tesla | Mannequin 3 Efficiency | 2023–2025 | $7,500 | $55,000 |
| Tesla | Mannequin X All-Wheel Drive | 2023–2025 | $7,500 | $80,000 |
| Tesla | Mannequin Y All-Wheel Drive | 2023–2024 | $7,500 | $80,000 |
| Tesla | Mannequin Y Lengthy Vary All-Wheel Drive | 2025 | $7,500 | $80,000 |
| Tesla | Mannequin Y Lengthy Vary Rear-Wheel Drive | 2024-2025 | $7,500 | $80,000 |
| Tesla | Mannequin Y Efficiency | 2023–2025 | $7,500 | $80,000 |
| Tesla | Mannequin Y Rear-Wheel Drive | 2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 AWD Professional | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 AWD Professional S | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 AWD Professional S Plus | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Professional | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Professional S | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Professional S Plus | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 S | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Customary | 2023-2024 | $7,500 | $80,000 |
And here is the record of qualifying plug-in hybrids:
| Make | Mannequin | Mannequin 12 months | Credit score Quantity | MSRP Restrict |
| Audi | Q5 PHEV 55 TFSI e quattro | 2023-2024 | $3,750 | $80,000 |
| Audi | Q5 S Line 55 TFSI e quattro | 2023-2024 | $3,750 | $80,000 |
| Chrysler | Pacifica PHEV | 2022-2024 | $7,500 | $80,000 |
| Ford | Escape Plug-in Hybrid | 2022-2025 | $3,750 | $80,000 |
| Jeep | Grand Cherokee PHEV 4xe | 2022-2024 | $3,750 | $80,000 |
| Jeep | Wrangler PHEV 4xe | 2022-2024 | $3,750 | $80,000 |
| Lincoln | Corsair Grand Touring | 2022-2024 | $3,750 | $80,000 |
Undoubtedly not an enormous record. And one which’s lacking some heavy hitters just like the Hyundai Ioniq 5 and Ford Mustang Mach-E. So what offers right here, precisely? That requires a little bit of a historical past lesson.
The longstanding EV tax credit score was revised and modernized as a part of the Inflation Discount Act, which handed in 2022. That laws had a lot of targets—together with probably conflicting ones—like encouraging native manufacturing and lessening China’s iron grip on the battery provide chain. (The tax credit even have limits based mostly on a purchaser’s annual revenue and the value of the car in query to maintain these from simply being luxurious presents to rich drivers.)
The brand new credit went into impact in January of final yr. However over the following months, the record of qualifying automobiles grew to become narrower and narrower, prioritizing batteries and battery parts made in North America as effectively. Now, the foundations stipulate that beginning in 2024 any car containing battery parts from what the federal government calls a “international entity of concern” will likely be excluded from receiving tax credit. The so-called “FEOC” guidelines just about immediately goal China, and provided that nation’s utter dominance of the battery provide chain, loads of new automobiles get unnoticed.
On the plus facet, it is essential to notice that leasing will nonetheless get you the complete tax credit score no matter the place the automotive was made, a loophole that has enormously benefitted international producers like Kia and Hyundai. Moreover, the credit now apply on the level of sale, which means you get an instantaneous worth lower on these automobiles with out having to attend for tax season.
These point-of-sale rebates have proved mighty common. Thus far this yr, EV consumers have obtained over $1 billion in incentives for some 150,000 automotive purchases, in accordance with the U.S. Treasury Division.
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(This information was final up to date on December 1, 2024)
