As a way to encourage people to go electric, the government gives those who buy a new EV a $7,500 tax deduction — the Inflation Reduction Act passed in the summer of 2022 extended the offer until 2032.
Americans looking to cash in on the electric vehicle tax credit now have a complete list of approved vehicles to choose from after the U.S. Treasury Department released its brand-new list of EVs that qualify for either half or all of the credit.
Don't Miss: Only 40% of Americans Plan to Buy EVs
Each year, the list of qualifying models changes — in 2022, the government cracked down on the have percentage of components in the EV's batter that need to be made domestically.
Chevrolet
To Get That $7,500 Tax Credit, Buy One Of These Cars
As a result of shifting rules, certain models allowed in past years no longer qualify while the approved cars are made largely by the "big three" of Ford (F), Tesla (TSLA) and General Motors (GM).
EV buyers must also agree to use the vehicle for their own personal use and keep it in the U.S. as a primary place of use.
These are the new models eligible for the tax credit in 2023:
· Cadillac Lyriq
· Chevrolet Blazer
· Chevrolet Bolt
· Chevrolet Bolt and EUV
· Chevrolet Equinox
· Chevrolet Silverado
· Chrysler Pacifica PHEV
· Ford F-150 Lightning
· Lincoln Aviator Grand Touring
· Tesla Model 3 Performance
· Tesla Model Y (All-Wheel Drive, Long Range All-Wheel Drive and 2022 Performance)
The following vehicles are eligible for a half-tax credit ($3,740.00).
· Ford Escape Plug-in Hybrid
· Ford E-Transit
· Ford Mustang Mach-E
· Jeep Grand Cherokee PHEV 4xe
· Jeep Wrangler PHEV 4xe
· Lincoln Corsair Grand Touring
· Tesla Model 3 Standard Range Rear Wheel Drive
Here's What You Need To Know To Claim That EV Credit
To earn the tax credit, 40% of auto battery minerals used in EV manufacturing must come from North America or from a country that has a current trading agreement with the U.S. The 40% figure is expected to rise to 80% by 2027.
The Treasury Department noted that global auto companies planning on opening manufacturing plants in the U.S. will also be approved for the vehicle tax credits in the near future.
While their makers are currently planning factories in the U.S. to fall under the domestic manufacturing provision, e-vehicles that are made outside the U.S. are not currently eligible for the credit — these includes many popular models from Nissan (NSANF) , Kia (KIMTF) , and Hyundai (HYMLF) .
Additionally, EV Buyers can earn a credit of up to $4,000 for used vehicles purchased from a dealer for $25,000 or less.
"The amount equals 30% of the purchased price, with a maximum credit of $4,000. Other requirements apply," Treasury Dept. said.
