The IRS has announced that the new tax credit will apply to new purchases of certain electric vehicles. The IRS says that the purchase of a qualified electric vehicle must be done under a written contract. The written contract can be as simple as a nonrefundable deposit, and it will be binding in nature. The credit is available to new buyers of electric vehicles, so it’s imperative that you shop around and consider your options.
General Motors
The latest tax credit for electric vehicles may make it easier for GM to sell them. A number of automakers have production facilities in the United States. The EV batteries must come from North America and be assembled there. The government is also requiring specified battery components to be produced and assembled in the United States. The new tax credit could mean a big tax cut for GM. Here are some of the ways it could work.
Tesla
There’s a small chance that the latest tax credit for EVs will help Tesla. The Senate bill, which is expected to be passed any day, eliminates a cap on the credits for electric vehicles and makes them only applicable to cars made by companies that produce them within North America or from free trade agreements. Nonetheless, if you’ve been considering a Tesla, now could be the right time to buy.
Toyota
If you own a Toyota electric vehicle, you may qualify for a federal tax credit of up to $7,500. The deadline for claiming the credit is Oct. 1 and only if you purchased your vehicle before that date. The same goes for Subaru, which has sold a few plug-in hybrids, but has not sold nearly enough to qualify for the credit. The company is still trying to sell more of its plug-in hybrids before the deadline ends.
Lexus
If you’re planning to purchase an electric vehicle for business or personal use, you might want to learn more about the tax credit for EVs. The latest tax credit for EVs is being offered to companies that build and sell electric vehicles in the United States. The credit is worth up to $7,500 per vehicle and can be claimed by those who meet certain income requirements. The IRS has determined that a Lexus electric vehicle could qualify under the latest tax credit.
General Motors Model Y
The new tax credit for EVs has certain requirements. Those requirements require final assembly in North America. The previous tax credit only applied to 72 models. The new tax credit is based on the production of an EV in North America. The new requirements will be set by the Treasury Secretary by the end of the year. The General Motors Model Y electric vehicle could qualify under the new tax credit.
All-electric vehicles
| Make and Model | Full Tax Credit |
| CADILLAC (GM) (does not qualify until 1/1/23) | |
| Lyriq (2023) | $,7500 |
| CHEVROLET (GM) (does not qualify until 1/1/23) | |
| Bolt EUV (2022) | $7,500 |
| Bolt EV (2022-2023) | $7,500 |
| FORD | |
| F-150 Lightning (2022) | $7,500 |
| Mustang Mach-E (2022) | $7,500 |
| E-Transit (2022) | $7,500 |
| MERCEDES-BENZ | |
| EQS SUV (2023) | $7,500 |
| NISSAN | |
| LEAF (2022-2023) | $7,500 |
| RIVIAN | |
| EDV 700 (2022) | $7,500 |
| R1T (2022) | $7,500 |
| R1S (2022) | $7,500 |
| TESLA (does not qualify until 1/1/23) | |
| Model 3 (2022) | $7,500 |
| Model Y (2022) | $7,500 |
Current as of 8/21/22
Plug-in Hybrid Electric Vehicles
| Make and Model | Full Tax Credit |
| AUDI | |
| Q5 (2022) | $7,500 |
| BMW | |
| 330e (2022-2023) | $7,500 |
| X5 xDrive45e (2022) | $7,500 |
| CHRYSLER | |
| Pacifica Plug-in Hybrid (2022) | $7,500 |
| FORD | |
| Escape Plug-in Hybrid (2022) | $7,500 |
| JEEP | |
| Grand Cherokee PHEV (2022) | $7,500 |
| Wrangler Unlimited PHEV (2022) | $7,500 |
| LINCOLN | |
| Aviator PHEV (2022) | $7,500 |
| Corsair Plug-in Hybrid (2022) | $7,500 |
| VOLVO | |
| S60 (2022) | $7,500 |
Current as of 8/21/22
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