The 6 (Or 7) Fully Electric Cars That Can Now Get $7500 US EV Tax Credit
The US federal tax credit for electric vehicles has been updated, and that means that some electric cars, trucks, and SUVs no longer qualify for the full tax credit — or even half the tax credit. Actually, most electric vehicles on the market in the United States no longer qualify! That’s unfortunate, but the good news is that the most popular electric models all qualify (or, at least, some versions of them do) and more EVs will qualify once they get their full paperwork in or once they shift certain portions of their production to the USA.
I’ll explain the intricacies of the US EV tax credit in a moment, but let’s first get to the core info you’re probably looking for: which electric cars, trucks, and SUVs qualify for the full $7,500 tax credit or at least qualify for a $3,750 tax credit.
$7,500 EV Tax Credit
First up, let’s look at the fully electric models now eligible for the full $7,500 EV tax credit. (Note: I’m ignoring any eligible plug-in hybrid models in this whole article.)
Chevy Bolt EV
As I wrote yesterday, in addition to coming in at a very low MSRP of $26,500, the low-cost Bolt EV is also eligible for the entire $7,500 tax credit. This little electric car is truly a steal. But …
Chevy Bolt EUV
… If you need more space, you’ve also got the option of the Chevy Bolt EUV, which is also eligible for the full $7,500 tax credit!
Ford F-150 Lightning Standard Range & Extended Range Battery
Whether you want this electric pickup truck with a large battery or an extra large battery, you can get the full tax credit on this new electric version of Ford’s most iconic vehicle.
The Lightning Pro starts just below $60,000, the XLT climbs up to $63,474, the Lariat then jumps to $75,974, and the Platinum starts at $98,074 — not a small total for a normal person, even with the $7,500 tax credit.
This one was a surprise. Actually, I forgot it existed. That said, I expect to see these pop up onto the road more and more in the coming years as people become more familiar with it and go buy it. It’s starting MSRP is $58,590. More likely than not, people who can afford the LYRIQ will appreciate the full $7,500 tax credit.
Tesla Model 3 Performance
Tesla’s highest performance and highest priced Model 3 is still eligible for the full $7,500 tax credit. With a starting price of $52,990, buyers will certainly appreciate that deep discount. There is no normal Long Range version of the Model 3 available at this time, so it’s a choice between this Performance model and a Standard RWD version (see next section).
Tesla Model Y Performance, AWD, & AWD Long Range
All versions of the Tesla Model Y are eligible for the full tax credit. The cheapest version starts at $46,990 before the tax credit, while the Long Range version starts at $49,990 and the Performance version starts at $53,990. As the 4th best selling car in the world in 2022 and one of the best selling vehicles in the United States, this tax credit will surely make many buyers happy.
Volkswagen ID.4 (soon, probably)
Three of our previous CleanTechnica Car of the Year winners were already included above (the Tesla Model 3, Tesla Model Y, and Ford F-150 Lightning). Here’s one more: the Volkswagen ID.4. While the ID.4 is not on the list at the moment, Volkswagen is reportedly providing the paperwork and the ID.4 vehicles built in Tennessee will soon be eligible for the full $7,500 tax credit. Stay tuned. At the moment, the base MSRP of the ID.4, before the tax break, is $38,995. But that model has just 209 miles of range. The more common ID.4 Pro has a starting MSRP of $43,995 — still a very competitive price for this class of vehicle and the features included.
UPDATE: Volkswagen told me today it has now submitted the paperwork to Treasury certifying that the TN-built ID.4 #EV SUV qualifies for a full $7,500 Federal tax credit.
However: It is very unclear how long it will take that info to show up on the EPA website. Fingers crossed?
— John ‘legacy blue check’ Voelcker (@johnvoelcker) April 18, 2023
$3,750 EV Tax Credit
Then there are the 3 to 4 models that aren’t eligible for the $7,500 EV tax credit but are eligible for the $3,750 EV tax credit. That includes:
Tesla Model 3 Standard Range (RWD)
Tesla’s lowest priced model (the model I own) currently sells for $39,990. Losing the full $7,500 tax credit (again) is odd when the much higher priced Model 3 Performance is still eligible for the larger tax credit, but that’s how the dice rolled due to the batteries inside of it. With the $3,750 knocked off the price, though, this popular electric car can be had for barely more than $36,000. You can’t buy a better car for that price.
Ford Mustang Mach-E Standard Range Battery & Extended Range Battery
The third most popular electric vehicle in the United States in 2022, only trailing the Tesla Model Y and Tesla Model 3, also got its tax credit cut in half. Technically, two versions of the Mustang Mach-E fall into this category, but I’m combining them here because it doesn’t make much sense to me to not do so. The lowest priced version of this popular electric crossover (the Select) has a starting MSRP of $45,995, and then you’ve got the Premium at $50,995, the California Route 1 at $57,995, and the GT at $63,995. Whichever model you choose, you can be half-contented with the fact that you can get $3,750 back from the federal government from buying a partially American electric Mustang crossover.
An electric delivery van from Ford that has a starting MSRP of $49,575. This could be a great option for any company that needs to lug stuff around or delivery packages. I expect to see Ford ramp up its production and sales of this model pretty good in the coming years.
2024 Models Eligible for EV Tax Credit
In addition to the current models that qualify for the US federal tax credit, the US Department of Energy website for this matter indicates some 2024 models that will qualify. That includes the Chevy Blazer EV, Chevy Equinox EV, and Chevy Silverado EV, all of which will qualify for the full $7,500 tax credit. Kudos to GM for making sure its electric vehicles are eligible.
Are we missing any other information here on models that should be eligible or will be eligible soon?
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