These Cars Are Eligible For New US EV Tax Credit

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Confused about what cars are eligible for the federal EV tax credit now that the Inflation Reduction Act has been signed into law? Don’t be. According to the Alternative Fuels Data Center at the US Department of Energy, this is the definitive 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 ultimate determining factor for what is and what isn’t eligible for the new tax credit is the VIN number. To find out more, use the VIN Decoder tool available on the NHTSA website, which will identify definitively where a particular vehicle was built.

Model Year Vehicle Note
2022 Audi Q5
2022 BMW 3 Series PHEV
2022 BMW X5
2022 Chevrolet Bolt EUV Manufacturer sales cap met
2022 Chevrolet Bolt EV Manufacturer sales cap 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 Manufacturer sales cap met
2022 GMC Hummer SUV Manufacturer sales cap met
2022 Jeep Grand Cherokee PHEV
2022 Jeep Wrangler PHEV
2022 Lincoln Aviator PHEV
2022 Lincoln Corsair Plug-in
2022 Lucid Air
2022 Nissan Leaf
2022 Rivian EDV
2022 Rivian R1S
2022 Rivian R1T
2022 Tesla Model 3 Manufacturer sales cap met
2022 Tesla Model S Manufacturer sales cap met
2022 Tesla Model X Manufacturer sales cap met
2022 Tesla Model Y Manufacturer sales cap met
2022 Volvo S60
2023 BMW 3 Series PHEV
2023 Bolt EV Manufacturer sales cap met
2023 Cadillac Lyriq Manufacturer sales cap met
2023 Mercedes EQS
2023 Nissan Leaf

The EV Tax Credit And SUVs

Obviously, with a price difference of $25,000 between vehicles eligible for the car and wagon credit and those available for the SUV credit, any manufacture with a lick of common sense is going to want its vehicles classified as SUVs. What is an SUV? That’s an excellent question. An SUV is what the government says it is, and that can involve the EPA, NHTSA, DOT, the IRS, and probably six or seven agencies you never heard of. An internet search failed to identify a single source for that information. Perhaps your accountant can help you with that.

Suffice to say, before you plunk your hard earned cash for a car you think is an SUV, make sure it qualifies for the EV tax credit in order to 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 materials sourcing requirements kick in on January 1, 2023), then it does not qualify.

Another unanswered question is whether the operative number is the price on the Mulroney sticker pasted to the back window of that shiny new chariot or the price listed on the sales contract, which could include any number of upcharges added by a dealer for market adjustments and other price gouging tactics. We assume the window sticker will control, but it’s likely many dealers will try everything they can to funnel some of that government money into their pockets instead of yours. Caveat emptor!

This legislation is brand new and there will be lots of changes, modifications, tweaks, and special exceptions coming in the days, weeks, and months to come. It may help to keep that url for the Alternative Fuels Center handy to keep yourself up to date on the latest information.


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Steve Hanley

Steve writes about the interface between technology and sustainability from his home in Florida or anywhere else The Force may lead him. He is proud to be "woke" and doesn't really give a damn why the glass broke. He believes passionately in what Socrates said 3000 years ago: "The secret to change is to focus all of your energy not on fighting the old but on building the new." You can follow him on Substack and LinkedIn but not on Fakebook or any social media platforms controlled by narcissistic yahoos.

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