The US Treasury has released a list of all the electric cars and carmakers who qualify for the Federal Tax Credits and who don’t.
The list of EVs and carmakers who qualify for the Federal Tax Credits has been released by the US Treasury. In a bid to promote the mass adoption of EVs, many governments across the globe offer various subsidies and incentives to EV buyers. The aim is to motivate new car seekers to choose EVs over traditional ICE-powered vehicles. While the initial prices are pretty high, benefits in the form of cash discounts or tax credits help a lot. Here is the list of EVs that are eligible for the latter.
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Electric Cars That Qualify for Tax Credits in USA
So, the maximum Federal tax credit that one can get on purchasing a new EV is $7,500. That depends on various factors like the location of where the EV is manufactured, the location of where the EV battery is manufactured, the location of where the minerals for the battery are sourced, etc. Taking all that into consideration, these EVs qualify for a full $7,500 Federal Tax Credit:
- 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 (AWD, Long Range AWD and 2022 Performance)
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Then some electric cars that qualify for a partial $3,750 tax credit:
- Ford Escape Plug-in Hybrid
- Ford E-Transit
- Ford Mustang Mach-E
- Jeep Grand Cherokee PHED 4xe
- Lincoln Corsair Grand Touring
- Tesla Model 3 Standard Range RWD
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The carmakers who will not qualify for this Federal Tax Credit anymore include:
- Audi
- BMW
- Genesis
- Nissan
- Rivian
- Volkswagen
- Volvo
- Kia
- Hyundai
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How to Qualify for Federal Tax Credit?
The EV must be manufactured in North America to qualify which is why Kia and Hyundai don’t qualify. To qualify for a $3,750 EV tax credit, at least 40% of battery minerals must come from North America or from a country that has a free trade agreement with the US. This number is set to increase to 80% in the next four years. Moreover, half of the battery components must be made or assembled in North America to qualify for the other $3,750 tax credit. It will soon go to 100%.