As of January 1, 2023, a number of electric vehicles are newly eligible for the $7,500 tax credit that went into effect a year ago as part of the $430 billion Inflation Reduction Act.
Some models newly added to the list lost their eligibility when their manufacturer reached the previous credit’s sales cap of 200,000 vehicles (Tesla models, Chevy Bolts). Others have recently shifted their production to North America, fulfilling one of the crucial requirements (VW ID.4).
There is still a lot up in the air at the moment
There’s a lot up in the air at the moment – the Treasury has set a March deadline for the release of guidance on some of the more thorny issues surrounding battery material procurement and other rules that could drastically reduce the list of allowances if passed in Kicking power – but for now, these are the EVs that qualify.
Foreign automakers are pressuring the Biden administration to give them a piece of the action, while Senator Joe Manchin (D-WV) is threatening to block implementation to prevent companies from exploiting loopholes. And Tesla CEO Elon Musk whines about how it’s “messed up” that certain versions of the Tesla Model Y that exceed the $80,000 price cap don’t qualify, while a number of hybrid Jeeps do.
Bottom line: if you’re unsure whether the new electric vehicle you’re eyeing is eligible for the loan, talk to an accountant. Every state has at least a few CPAs who are familiar with the weirdness of EV tax credits and can help you navigate the murky waters ahead. They can also tell you what government incentives, if any, are available.
This list is a good start, but don’t think about the last word.
Eligible EV for $7,500 tax credit