New EVs Eligible for the Clean Vehicle Tax Credit

Electric vehicle assembly line

The U.S. federal government is offering a clean vehicle tax credit to help promote the purchase of electric vehicles as an effort to reduce carbon emissions. The clean vehicle tax credit of up $7,500 depends on several factors. Here are some details on what is needed to qualify for the tax credit. Consult the Internal Revenue Service or your tax professional for more details.

Your electric vehicle purchase must:

  • be for your own use and not for resale
  • must be your primary vehicle

Your gross income (AGI) must not exceed the following:

  • $300,000 for married couples filing jointly 
  • $225,000 for heads of households
  • $150,000 for all other filers

Qualified Electric Vehicle Requirments

  • Must have a battery capacity of at least 7 kilowatt hours
  • Weigh less than 14,000 pounds
  • Must be made by an approved electric vehicle manufacturer.
  • The final assembly of the electric vehicle must take place in North America
  • As of April 18, 2023, EVs need to meet the critical mineral and battery component requirements.

The purchase of the electric vehicle must meet the following:

  • Purchase a new electric vehicle.
  • The seller reports must report the required information to you and the Internal Revenue Service at the time of the sale.
    • Furthermore, the seller will need to report your name and taxpayer identification number ( to the Internal Revenue Service for you to qualify for the tax credit.

The electric vehicle’s Manufacturers suggested retail price (MSRP) cannot be over

  • $80,000 for SUVs and pickup trucks
  • $55,000 for sedans, hatchbacks, and coupes

To determine if the electric vehicle you are purchasing is Made in North America, use a VIN decoder. Below is a list of qualified electric vehicles. Please follow the guidelines listed above and use your VIN decoder to make sure you meet all the criteria for the clean vehicle tax credit.

How EV Credits are Awarded

For vehicles placed in service from January 1 to April 17, 2023:

  • $2,500 is the base EV tax credit amount
  • Plus, $417 for an EV with at least 7 kilowatt hours of battery capacity
  • Plus, $417 for each kilowatt hour of battery capacity beyond 5 kilowatt hours
  • Tax credit capped at $7,500 total

In general and electric vehicle (EV) that qualified would receive a minimum tax credit of $3,751.

For vehicles placed in service April 18, 2023 and after:

Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to:

  • $3,750 if the vehicle meets the critical minerals requirement only
  • $3,750 if the vehicle meets the battery components requirement only
  • $7,500 if the vehicle meets both

An electric vehicle that does not meet either requirement will not be eligible for a tax credit.

Electric Cars Eligible for the Clean Vehicle Tax Credit

Eligible Electric VehiclesEV CreditMSRP Cap
2023  Cadillac  LYRIQ  RWD$7,500$80,000
2023 Chevrolet Bolt EV 1LT$7,500$55,000
2023 Chevrolet Bolt EV 2LT$7,500$55,000
2023  Chevrolet  Bolt EUV  LT$7,500$55,000
2023  Chevrolet  Bolt EUV  Premier$7,500$55,000
2023  Ford  Mustang Mach-E  Select Standard Range RWD$3,750$80,000
2023  Ford  Mustang Mach-E  Select Standard Range AWD$3,750$80,000
2023  Ford  Mustang Mach-E  Premium Standard Range RWD$3,750$80,000
2023  Ford  Mustang Mach-E  Premium Standard Range AWD$3,750$80,000
2023  Ford  Mustang Mach-E  Premium Extended Range RWD$3,750$80,000
2023  Ford  Mustang Mach-E  Premium Extended Range AWD$3,750$80,000
2023  Ford  Mustang Mach-E  California Route 1$3,750$80,000
2023  Ford  Mustang Mach-E  GT$3,750$80,000
2023  Ford  Mustang Mach-E  GT Performance Edition$3,750$80,000
2023  Ford  F-150 Lightning  Pro$7,500$80,000
2023  Ford  F-150 Lightning  XLT$7,500$80,000
2023  Ford  F-150 Lightning  Lariat$7,500$80,000
2023  Rivian  R1S  Dual Motor AWD Standard Pack$3,750$80,000
2023  Rivian  R1T  Dual Motor AWD Standard Pack$3,750$80,000
2023  Tesla  Model 3 $3,750$55,000
2023  Tesla  Model 3  Performance$7,500$55,000
2023  Tesla  Model Y  Long Range$7,500$80,000
2023  Tesla  Model Y  Long Range 7-Seat$7,500$80,000
2023  Tesla  Model Y  Performance$7,500$80,000
2023  Volkswagen  ID.4  Standard$7,500$80,000
2023  Volkswagen  ID.4  Pro$7,500$80,000
2023  Volkswagen  ID.4  Pro S$7,500$80,000
2023  Volkswagen  ID.4  Pro S Plus$7,500$80,000
2023  Volkswagen  ID.4  AWD Pro$7,500$80,000
2023  Volkswagen  ID.4  AWD Pro S$7,500$80,000
2023  Volkswagen  ID.4  AWD Pro S Plus$7,500$80,000

To learn more about electric cars eligible for the vehicle tax credit and how they can save you time, money, and the environment, check out Electric Driver.

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