If you live in the US and buy a new electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV) in 2023, you might be eligible for a federal tax credit of up to $7,500. While the credit existed previously, it's had a few updates for 2023, including changing which vehicles are eligible.
We're going to explore the eligibility requirements and which vehicles qualify.
Are You Eligible for the Clean Vehicle Tax Credit?
To qualify for the clean vehicle tax credit, you must buy the car for your own use and use it primarily in the US. Your income is also factored in. The vehicle you purchase must be new, not exceed a specific manufacturer's suggested retail price (MSRP), and be made by a qualified manufacturer.
Many automakers have entered into an agreement with the IRS to become qualified manufacturers. However, some have not submitted a specific list of eligible models. As such, it's important to verify that your purchase will be eligible for the credit.
So, to assist you, here's a list of every electric vehicle that qualifies for the clean vehicle US tax credit, broken down by automaker.
1. Audi
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Audi Q5 e Quattro | 2023 | $80,000 |
First up is Volkswagen's luxury arm, Audi. The German automaker offers one vehicle that qualifies for the clean vehicle tax credit: the Q5 e Quattro.
The Q5 e Quattro PHEV offers over 20 miles of electric-only range and is rated at an EPA-estimated 61 MPGe combined.
2. BMW
Vehicle | Model Year | MSRP Limit |
|---|---|---|
BMW 330e | 2021, 2022, 2023 | $55,000 |
BMW X5 xDrive45e | 2021, 2022, 2023 | $80,000 |
BMW offers two models that qualify for the clean vehicle tax credit: the BMW 330e and BMW X5 xDrive45e. Both models are PHEVs.
The 330e compact sports sedan is capable of over 20 miles of electric-only range, while the X5 xDrive45e offers an EPA-estimated 30 miles of electric-only range and 50 MPGe combined.
3. Cadillac
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Cadillac Lyriq | 2022, 2023 | $80,000 |
Cadillac is the first automaker on this list that has a full battery electric vehicle (BEV) that qualifies for the credit.
Cadillac's Lyriq is also the American automaker's first all-electric vehicle. The Lyric is powered by a 12-module, 100-kWh battery pack, and delivers around 300 miles of range.
4. Chevrolet
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Chevrolet Bolt | 2022, 2023 | $55,000 |
Chevrolet Bolt EUV | 2022, 2023 | $55,000 |
Chevrolet has two BEVs that qualify for the clean vehicle tax credit: the Bolt and Bolt Electric Utility Vehicle (EUV).
Both models use a 65-kWh battery lithium-ion battery. The Bolt has an EPA-estimated 259 miles of range on a full charge and the slightly larger Bolt EUV is rated at 247 miles.
5. Chrysler
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Chrysler Pacifica PHEV | 2022, 2023 | $80,000 |
As the creator of one of the best-selling minivans of all time, Chrysler is also the first to make a hybrid people carrier and the only automaker in the segment to offer a PHEV.
The Pacifica Hybrid's powertrain can deliver more than 30 miles of electric-only range and more than 80 MPGe. In total, the hybrid minivan has a range of over 500 miles on a full battery and tank of gas.
6. Ford
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Ford Escape Plug-In Hybrid | 2022, 2023 | $80,000 |
Ford E-Transit | 2022, 2023 | $80,000 |
Ford F-150 Lightning | 2022, 2023 | $80,000 |
Ford Mustang Mach-E | 2022, 2023 | $80,000 |
Ford offers several EVs that qualify for the federal clean vehicle tax credit, including the Escape Plug-in Hybrid, E-Transit Van, F-150 Lighting, and Mustang Mach-E.
The F-150 Lightning has a standard 98-kWh battery and an optional 131-kWh extended-range battery that offer total ranges of 240 miles or 320 miles, respectively. The F-150 Lightning is also the first pickup truck with the ability to power your home via Ford's Intelligent Backup Power.
7. Lincoln
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Lincoln Aviator Grand Touring | 2022, 2023 | $80,000 |
Lincoln Corsair Grand Touring | 2022, 2023 | $80,000 |
Ford's upscale brand, Lincoln, has two PHEVs that qualify for the clean vehicle tax credit: the Aviator Grand Touring and the Corsair Grand Touring.
The Lincoln Aviator Grand Touring's electrified powertrain features a Preserve EV drive mode that can recharge the battery up to 75% when in use and then keep it charged. The smaller Lincoln Corsair Grand Touring is AWD as standard and can deliver up to 25 miles of electric-only range.
8. Jeep
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Jeep Grand Cherokee 4xe | 2022, 2023 | $80,000 |
Jeep Wrangler 4xe | 2022, 2023 | $80,000 |
You may not expect the off-road brand Jeep to have models that would qualify for the new EV tax credit, but it does. Jeep's Grand Cherokee and Wrangler ranges offer PHEV models dubbed "4xe" (four-by-e).
The Wrangler 4xe delivers 21 miles of electric-only range and 49 MPGe. The Grand Cherokee 4xe delivers 25 miles of electric-only range and an estimated 57 MPGe, with a total estimated range of 440 miles.
9. Nissan
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Nissan Leaf S | 2021, 2022, 2023 | $55,000 |
Nissan Leaf S Plus | 2021, 2022 | $55,000 |
Nissan Leaf SL Plus | 2021, 2022 | $55,000 |
Nissan Leaf SV | 2021, 2022 | $55,000 |
Nissan Leaf SV Plus | 2021, 2022, 2023 | $55,000 |
Nissan's Leaf was one of the first affordable, mass-market BEVs available back in 2010. All Leaf trims, battery sizes, and electric motor sizes qualify for the clean EV tax credit.
The EPA-estimated range for Leafs equipped with the smaller battery and electric motor is 149 miles, while for the larger battery and motor it goes up to 212 miles.
10. Rivian
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Rivian R1S | 2022, 2023 | $80,000 |
Rivian R1T | 2022, 2023 | $80,000 |
Rivian is one of the newest EV automakers on the block. The startup's EV lineup shouldn't be overlooked. For example, the Rivian R1T offers amazing tech features not present in similar vehicles from other manufacturers, like a four-motor configuration (one driving each wheel) and massive gear tunnel storage space.
The EV duo is available in three battery sizes that deliver a total range between 260 and 400 miles.
11. Tesla
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Tesla Model 3 Rear-Wheel Drive | 2022, 2023 | $55,000 |
Tesla Model 3 Long Range | 2022, 2023 | $55,000 |
Tesla Model 3 Performance | 2022, 2023 | $55,000 |
Tesla Model Y All-Wheel Drive | 2022, 2023 | $80,000 |
Tesla Model Y Long Range | 2022, 2023 | $80,000 |
Tesla Model Y Performance | 2022, 2023 | $80,000 |
Tesla has four models in its lineup, but only two of them qualify for the clean vehicle tax credit: the Model 3 and Model Y.
For the Tesla Model 3, the rear-wheel drive, long-range, and performance models are covered by this tax credit. For the Model Y, the all-wheel drive, long-range, and performance models are covered.
12. Volkswagen
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Volkswagen ID.4 | 2023 | $80,000 |
Volkswagen ID.4 Pro | 2023 | $80,000 |
Volkswagen ID.4 Pro S | 2023 | $80,000 |
Volkswagen ID.4 S | 2023 | $80,000 |
Volkswagen ID.4 AWD Pro | 2023 | $80,000 |
Volkswagen ID.4 AWD Pro S | 2023 | $80,000 |
In the fallout of VW's "Dieselgate", the German automaker is making a major push into the EV market as it focuses on improving its somewhat tarnished image. Currently, the only VW electric car available right now in the US is the ID.4.
The ID.4 offers two battery sizes and two electric motor setups that deliver between 209 and 275 miles, depending on if the EV is optioned with AWD.
13. Volvo
Vehicle | Model Year | MSRP Limit |
|---|---|---|
Volvo S60 (PHEV) | 2022 | $55,000 |
Volvo S60 Extended Range | 2022 | $55,000 |
Volvo S60 T8 Recharge (Extended Range) | 2023 | $55,000 |
Volvo is another automaker that is pushing toward an all-electric future. However, only one car qualifies for the clean EV tax credit and it's a PHEV: the S60 Recharge.
According to Volvo, the extended-range model can travel up to 41 miles just on electricity.
14. Other Automakers That Qualify for the EV Tax Credit
The following companies have entered into an agreement with the IRS, but have yet to finalize their eligible vehicles. To remain up to date on their status, check the IRS website.
- Honda
- Hyundai
- Jaguar Land Rover
- Kia
- Mazda
- Mercedes-Benz
- Mitsubishi
- Polestar
- Porsche
- Subaru
- Toyota
The Clean Vehicle Credit Is Worth Looking Into
The clean vehicle tax credit can be applied to your tax return in the year a new EV or PHEV was purchased, should you or your family meet income thresholds. While the criteria is a bit complicated, it's worth looking into if you're considering the purchase of a new electric vehicle.
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