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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