galvanizing cars may be have cheaper , but they ’re still notcheap . As such , many likely customers hope to factor in in the up - to-$7,500 federal electric vehicle taxation cite as a way to relent the blow of buying a new car .

But thefederal EV tax credithas go away through a number if iterations , and it does n’t last eternally . Not only that , but as it turns out , many electric automobile simply are n’t eligible for the credit , and it ’s authoritative to keep that in mind if you project on grease one’s palms an galvanic car in the good future .

Curious to find out if your next car qualifies for the EV revenue enhancement credit ? Here ’s what you need to know .

What are the requirements of the credit?

To qualify for the Union EV tax reference , cars and manufacturers have to fulfill a number of demand .

For starters , buyers may only restrict for the full $ 7,500 EV taxation credit if they buy a fresh gondola . Buyers ofused galvanizing carscan still getacredit , but it ’s limited to $ 4,000 alternatively .

Other requirements have to also be met . To be eligible for $ 3,750 of the course credit , 40 % of the battery minerals must issue forth from the U.S. or state with a free patronage concord with the U.S. That will increase to 60 % in 2024 , 70 % in 2026 , 80 % in 2027 , 90 % in 2028 , and 100 % in 2029 . And in 2025 , cars with any shelling mineral or components from rural area of concern will be eject from the credit entry .

The other half of the credit calculate on whether or not the battery was meet or invent in the U.S. For 2023 , 50 % of it has to be manufactured in the U.S. , with that number increasing to 60 % set out in 2024 , 70 % in 2026 , 80 % in 2027 , 90 % in 2028 , and 100 % in 2029 .

There is a price cap , too , which differs based on the type of vehicle . Trucks , vans , andSUVsmay cost no more than $ 80,000 — all other cars must be $ 55,000 or less .

There ’s also an income limit . Buyers can use the modified aline gross income from the class the car was delivered , or the yr before . When it come to new cars , for exclusive filers , it can not exceed $ 150,000 . For heads of household , it ca n’t exceed $ 225,000 . For married couples filing jointly , it ca n’t outdo $ 300,000 . And , for matrimonial couples filing separately , it ca n’t outstrip $ 150,000 . Those soma are exactly halve forbuyers of used EVs .

Unfortunately , it ’s still not as simple as getting a flat credit on your taxes . The credit entry you ’ll get really depends on how much you owe in income taxes for the year . If , for example , you bought a qualifying fomite and only owed $ 2,000 on your income taxes for the class , you would only get $ 2,000 . The rest will not count toward a refund , or toward next class ’s tax . If you do n’t owe anything , do n’t expect anything ( refer : ERTC ) .

Cars that still qualify

While we ca n’t aid you regain out if your income meets the prerequisite for the EV tax credit , we can help oneself you determine if private car still measure up . Here ’s a list of the automobile that qualified for the federal tax credit at the prison term of this writing . Remember the MSRP limit though — many of the cars on this tilt could tip over the cost limit if you opt a premium passementerie level or select too many upgrades . This list is subject to change , so it may be worth double - checking if the car you ’re buy qualifies by heading tofueleconomy.gov .

BMW

Cadillac

Chevrolet

Chrysler

Ford

Jeep

Lincoln

Rivian

Tesla

Volkswagen