What Electric Vehicles Could Qualify Under the Latest Tax Credit For EVs?

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set of black opened envelope and cash dollars

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 ModelFull 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 ModelFull 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

Jenn Fontana
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