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The Street

Luc Olinga

Here Are the EVs That Give You a Tax Credit

electric vehicle Federal Joe Biden United States

The Biden administration wants to promote the adoption of electric vehicles by extending the current Federal tax credits.

Electric vehicles are still a luxury for the vast majority of consumers.

Their price has increased further in recent months, due to continued disruptions in supply chains and soaring prices for raw materials such as nickel, cobalt and others, which are needed to develop the battery, the key element to battery-powered vehicles (BEV).

Democratic President Joe Biden, who has made the adoption of green cars one of his priorities, included tax credits in the Inflation Reduction Act (IRA), signed last August, to encourage consumers to choose an electric vehicle when buying their future car.

"If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, aside from the final assembly requirement, the rules in effect before the enactment of the Inflation Reduction Act for the EV credit apply (including those involving the manufacturing caps on vehicles sold)," the Internal Revenue Service (IRS) said.

Basically, until December 31, buyers of certain electric vehicles can benefit from the federal tax credit of $7,500, in place since 2010. For all electric vehicles purchased after January 1, 2023, when the new law comes into effect, they must meet additional criteria for their buyers to benefit from the tax credit: the EV must be assembled in North America, for example.

Under the new law, the federal tax credit for EVs remains at $7,500. The eligibility period is from January 2023 to December 2032. The existing tax credit limitation when a car manufacturer has sold the 200,000th unit is eliminated. Tesla, General Motors and Toyota, whose cars no longer benefited from tax credits, are eligible again beginning January 1, 2023.

From 2024, the consumer will be able to deduct the tax credit directly from the dealer. Until then, this will be done when filing their tax return in April of each year (as was the case before).

However, under the new law, there are limits, which means that not all electric vehicles will benefit from this federal assistance. SUVs, pickups/trucks and vans costing more than $80,000 are excluded, as are consumers with high income. Some cars must cost less than $55,000. The goal of the White House is to promote the sale of electric vehicles at affordable prices.

Finally, the tax credit of $7,500 is divided in two: $3,750 will apply if at least 40% of the minerals of the battery powering the vehicle come from the United States or a country having a free trade agreement with the United States.

The other $3,750 will apply if at least 50% of the battery components come from the United States or from countries with a free trade agreement with the United States. In summary, the electric vehicle you buy can benefit from the full $7,500 tax credit, half or none, depending on the battery components and minerals.

Here are the green vehicles that can get the federal tax credits until December 2022, according to the IRS and the U.S. Department of Energy.

EVs:

AUDI

e-tron Sportback (2020-2022)

e-tron SUV (2019, 2021-2022)

e-tron GT / RS e-tron GT (2022)

e-tron S (Standard and Sportback)

Q4 50 e-tron Quattro

BMW

i3 Sedan (2014-2021)

i3s (2018-2021)

i4 eDrive40/M50 Gran Coupe (2022)

iX xDrive50/M60 (2022)

BYD

e6 (2012-2017)

ELECTRIC LAST MILE SOLUTIONS (ELMS)

ELMS Urban Delivery (2022)

FIAT

500e (2013-2019)

FORD

Focus EV (2012-2018)

Mustang Mach-E (all 2021/2022 trims including GT)

E-Transit (2022)

F-150 Lightning (standard/extended range) (2022)

GENESIS

GV60 (2023)

HYUNDAI

Ioniq Electric (2017-2021)

Ioniq 5 (2022)

Kona Electric (2019-2022)

JAGUAR

I-Pace (2019-2022)

I-Pace HSE (2022-2023)

KIA

Niro EV (2019-2022)

Soul Electric (2015-2020)

EV6 (58 kWh, 77.4 kWh) (2022)

LUCID MOTORS

Lucid Air Dream Edition (2022)

Lucid Air Grand Touring (2022)

MAZDA

MX-30 (2022)

MERCEDES-BENZ

AMG EQS (2022)

EQS 450+ (2022)

EQS 580 4matic (2022)

B-Class EV (2014-2017)

MINI

Cooper S E Hardtop 2 & 4 Door (2020-2023)

MITSUBISHI

i-MiEV (2012, 2014, 2016, 2017)

NISSAN

LEAF (2011-2022)

POLESTAR

Polestar 2 (2021)

Polestar 2 Long Range – Single & Dual Motor (2022)

PORSCHE

Taycan (2020-2022)

RIVIAN

R1T (2022)

R1S (2022)

EDV 700 (2022)

SMART USA

EQ fortwo Coupe (2019)

EQ fortwo Cabrio (2019)

SUBARU

Solterra (2023) $7,500

VOLKSWAGEN

e-Golf (2015-2019)

ID.4 EV (First/Pro/Pro S) (2021)

VOLVO

C40 Recharge Pure Electric (2022)

XC40 Recharge Pure Electric (2021-2022)

Plug-in Hybrid:

AUDI

A3 e-tron / e-tron ultra (2016-2018)

A7 55 TFSI e Quattro (2021)

A7 TFSI e Quattro (2022)

A8L PHEV (2020)

A8L 60 TFSI e Quattro (2021)

Q5 PHEV (2020)

Q5 55 TFSI e Quattro (2021)

Q5 TFSI e Quattro (2022)

BENTLEY

Bentayga Hybrid (2020-2021)

BMW

i3 Sedan w/ Range Extender (2014-2021)

i3s w/ Range Extender (2018-2021)

BMW i8 (2014-2017)

i8 Coupe/Roadster (2018-2020)

X3 xDrive30e (2020-2021)

X5 xDrive40e (2016-2018)

X5 xDrive45e (2021-2022)

330e (2016-2018)

330e/330e xDrive (2021-2022)

530e/530e xDrive (2018-2019)

530e/530e xDrive (2020-2022)

740e (2017)

740e xDrive (2018-2019)

745e xDrive (2020-2022)

CHRYSLER

Pacifica Plug-In Hybrid (2017-2022)

FERRARI

SF90 Stradale (2020-2021)

FISKER AUTOMOTIVE

Karma Sedan (2012)

FORD

C-Max Energi (2013-2017)

Fusion Energi (2013-2018)

Fusion Energi (2019-2020)

Escape Plug-in Hybrid (2020-2022)

HONDA

Accord Plug-in Hybrid (2014)

Clarity Plug-in Hybrid (2018-2021)

HYUNDAI

Ioniq Plug-in Hybrid (2018-2022)

Sonata Plug-in Hybrid (2016-2019)

Tucson Plug-in Hybrid (2022)

Santa Fe Plug-in Hybrid (2022)

JEEP

Grand Cherokee PHEV (2022)

Wrangler Unlimited PHEV (2021-2022)

KARMA

Revero (2018-2020)

KIA

Niro Plug-in Hybrid (2018-2022)

Optima Plug-in Hybrid (2017-2020)

Sorento Plug-in Hybrid (2022)

LAND ROVER

Range Rover/Sport PHEV (2019)

Range Rover/Sport PHEV (2020-2022)

Range Rover SE PHEV (2023)

Rover Range Rover Sport Autobiography PHEV (2023)

LINCOLN

Aviator Grand Touring (2020-2022)

Corsair Reserve Grand Touring PHEV (2021-2022)

Corsair Grand Touring PHEV (2022)

McLAREN

Artura (2022)

MERCEDES-BENZ

S550e Plug-in Hybrid (2015-2017)

GLE550e 4matic (2016-2018)

GLC350e 4matic (2018-2019)

GLC350e 4M EQ (2020)

S560e EQ PHEV (2020)

C350e (2016-2018)

MINI

Cooper S E Countryman ALL4 (2018-2019)

Cooper S E Countryman ALL4 (2020-2022)

MITSUBISHI

Mitsubishi Outlander Plug-in (2018-2020)

Mitsubishi Outlander Plug-in (2021-2022)

POLESTAR

Polestar 1 (2020-2021)

PORSCHE

Cayenne S E-Hybrid (2015-2018)

Cayenne E-Hybrid / Coupe (2019-2020)

Cayenne Turbo S E-Hybrid / Coupe (2021)

Cayenne E-Hybrid / Coupe (2021-2022)

Panamera S E-Hybrid (2014-2016)

Panamera 4 E-Hybrid (2018)

Panamera 4 E-Hybrid (2019-2020)

Panamera 4 E-Hybrid (2021-2022)

SUBARU

Crosstrek Hybrid (2019-2022)

TOYOTA

Prius Plug-in Hybrid (2012-2015)

Prius Prime Plug-in Hybrid (2017-2022)

RAV4 Prime Plug-in Hybrid (2021-2022)

VOLVO

S60 (2019)

S60 (2020-2022)

S60 Extended Range (2022)

S90 (2018-2019)

S90 (2020-2022)

S90 Extended Range (2022)

V60 (2020-2022)

V60 Extended Range (2022)

XC60 (2018-2019)

XC60 (2020-2022)

XC60 Extended Range (2022)

XC90 (2016-2017)

XC90 / XC90 Excellence (2018-2019)

XC90 (2020-2022)

XC90 Extended Range (2022)

From January 1, 2023, the two lists will change dramatically in view of the new eligibility conditions. Here is a list of clean vehicles that could qualify for the full $7,500 credit.