Confused about which cars qualify for the federal electric vehicle tax credit now that the Inflation Reduction Act has been signed into law? Do not be. According to the Alternative Fuels Data Center at the US Department of Energy, this is the final list. Keep in mind that the new law only applies to cars and wagons with a sticker price of $55,000 or less and SUVs with a sticker price of $80,000 or less.
The final determining factor for what is and is not eligible for the new tax credit is the VIN number. To learn more, use the VIN Decoder tool available on the NHTSA website, which will definitively identify where a particular vehicle was built.
| Model year | The vehicle | note |
|---|---|---|
| 2022 | Audi Q5 | |
| 2022 | BMW 3 Series PHEV | |
| 2022 | BMW X5 | |
| 2022 | Chevrolet Bolt EUV | The manufacturer’s sales cap was met |
| 2022 | Chevrolet Bolt EV | The manufacturer’s sales cap was met |
| 2022 | Chrysler Pacifica PHEV | |
| 2022 | Ford Escape PHEV | |
| 2022 | Ford F-150 Lightning | |
| 2022 | Ford Mustang Mach-E | |
| 2022 | Ford Transit van | |
| 2022 | GMC Hummer Pickup | The manufacturer’s sales cap was met |
| 2022 | GMC Hummer SUV | The manufacturer’s sales cap was met |
| 2022 | Jeep Grand Cherokee PHEV | |
| 2022 | Jeep Wrangler PHEV | |
| 2022 | Lincoln Aviator PHEV | |
| 2022 | Lincoln Corsair Plug-in | |
| 2022 | Purified air | |
| 2022 | Nissan Leaf | |
| 2022 | Rivian EDV | |
| 2022 | Rivian R1S | |
| 2022 | Rivian R1T | |
| 2022 | Tesla Model 3 | The manufacturer’s sales cap was met |
| 2022 | Tesla Model S | The manufacturer’s sales cap was met |
| 2022 | Tesla Model X | The manufacturer’s sales cap was met |
| 2022 | Tesla Model Y | The manufacturer’s sales cap was met |
| 2022 | Volvo S60 | |
| 2023 | BMW 3 Series PHEV | |
| 2023 | EV store | The manufacturer’s sales cap was met |
| 2023 | Cadillac Lyric | The manufacturer’s sales cap was met |
| 2023 | Mercedes EQS | |
| 2023 | Nissan Leaf |
EV and SUVs tax credit
Of course, with a $25,000 price difference between vehicles that qualify for the car and wagon loan and those available for the SUV loan, any manufacturer in their right mind will want their vehicles to be classified as SUVs. What is an SUV? This is an excellent question. An SUV is what the government says it is, and that can include the EPA, NHTSA, DOT, IRS, and maybe six or seven agencies you’ve never heard of. An internet search failed to identify a single source for that information. Perhaps your accountant can help you with this.
Suffice it to say, before you plunk down your hard-earned cash on a car you think is an SUV, make sure it qualifies for the EV tax credit so you can avoid tears at tax time. It shouldn’t be this hard, but it is. If the vehicle you want to buy is not on the list above (which is only valid until the new battery material sourcing requirements start on 1 January 2023) then it is not eligible.
Another unanswered question is whether the operating number is the price on the Mulroney sticker affixed to the rear window of that shiny new wagon or the price listed on the sales contract, which can include any number of fees added by a dealer for market adjustments and other price gouging tactics. We assume the window sticker will control, but it’s likely that many dealers will do whatever they can to put some of that government money in their pockets instead of yours. Caveat emptor!
This legislation is brand new and there will be many changes, modifications, amendments and special exemptions coming in the coming days, weeks and months. It may help to keep that url for the Center for Alternative Fuels to keep yourself updated on the latest information.
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