The revised Clean Car Credit issued last August as part of the Inflation Reduction Act was immediately moved to apply only to American-made electric car.
That might be easy enough to understand; but the law also introduces new requirements for key minerals and battery components, and will require attention to information that may not be entirely clear from the information on window stickers.
The Treasury Department on March 31 posted guidance on the origin of battery materials, which will determine under the new rules whether buyers can claim $3,750 or $7,500. That goes into effect April 18—yes, tomorrow—but the government just released the initial list today of what qualifies and what doesn’t qualify for the full amount.
As officials predicted with the release of the guidance, the amount of tax credits for many American-made electric vehicles will be reduced April 18, though, as automakers adjust their supply chains in response, the list will continue to grow from this minimal state.
Where can you check EV tax credit status?
ONE tax credit page at the EPA’s consumer-facing website, FuelEconomy.gov, will act as an access point for shoppers, both in checking which vehicles fall under which category and to see what they qualify for.
Ford F-150 Lightning 2023
Tax credit rules for income and prices
Before considering a vehicle under these new rules, keep in mind that you’ll need to meet new income requirements, as well as price limits on the vehicles themselves. The credit currently only applies to an adjusted gross income limit of $300,000 for married couples filing jointly, $225,000 for head of household, or $150,000 for other filers.
In regards to the vehicle price cap, the new credit sets a price cap of $55,000 for new cars and $80,000 for pickups, SUVs, and trucks. After some initial confusion about what constitutes a car versus an SUV, the Ministry of Finance clarification of electric SUV list in February.
Electric vehicles and some plug-in hybrids purchased between August 16, 2022 and the end of 2022 are eligible for the full amount of the $7,500 tax credit if it undergoes final assembly in North America (inc. including Mexico). At the beginning of 2023, new income requirements and car price limits come into effect.
2023 Tesla Model X – Courtesy of Tesla, Inc.
What if you already paid for the EV?
As the IRS reminded shoppers on Monday, the new battery requirements apply when the vehicle is put into service, not when it is ordered or purchased. So, if you ordered a car that isn’t on this list months ago but it still hasn’t been delivered, your tax credit ship has set sail.
One final note: All of this applies to purchases, but different rules to leases. Higher household incomes looking for higher-priced EVs—even those made abroad—can still take advantage of another spin on the $7,500 price tag. EV tax credit in rental form.
Which models qualify for the tax credit?
Chevrolet Bolt EUV 2022
Before the new rules go into effect tomorrow, April 18, here’s the full list of vehicles that are currently eligible for the $7,500 tax credit on purchases:
Cadillac Lyriq 2023-2024
Chevrolet Blazer EV 2024
2022-2023 Chevrolet Bolt EV
2022-2023 Chevrolet Bolt EUV
Chevrolet Equinox EV 2024
Chevrolet Silverado EV 2024
2022-2023 Chrysler Pacifica Hybrid
2022-2023 Ford F-150 Lightning (Standard and Extended Range)
2022-2023 Lincoln Aviator Grand Touring (PHEV)
Tesla Model 3 Performance 2022-2023
Tesla Model Y all-wheel drive 2022-2023
Ford Mustang Mach-E 2023
And here are the models that qualify for $3,750:
Ford E-Transit 2022-2023
Ford Escape Plug-In Hybrid 2022-2023
2022-2023 Ford Mustang Mach-E Standard and Extended Range)
2022-2023 Jeep Grand Cherokee 4xe
2022-2023 Jeep Wrangler 4xe
2022-2023 Lincoln Corsair Grand Touring (PHEV)
