If you’re thinking about purchasing a new vehicle, consider an electric vehicle or EV. Both plug-in electric vehicles and fuel cell vehicles may help you qualify for a substantial $7,500 tax credit if you purchase that vehicle between now and 2032.
The clean vehicle tax credit is available to those who buy a qualified EV for themselves to use (not for resale) and who plan to use it in the U.S. Also notable, to qualify, you need to meet the income limits as reported as your modified adjusted gross income (AGI):
- $300,000 for married couples filing jointly
- $225,00 for heads of households
- $150,000 for all others
If you’re looking for ways to make extra money, this is one way to reduce what you owe on your income taxes the year you buy a qualified vehicle.
Here are some of the vehicles that qualify based on the U.S. Department of Energy Efficiency & Renewable Energy.
Chevrolet Bolt EUV
Both the Chevrolet Bolt and Bolt EUV for 2022 and 2023 qualify for the $7,500 credit limit. It gets an EPA estimated 247 miles on a full charge and offers nice features like a Driver Information Center with an efficiency gauge as well as Driver Display Screens for charging stats and real-time energy consumption data.
Ford F-150 Lightning
The Ford F-150 Lightning for model years 2022 and 2023 makes the cut for the full $7,500 tax credit. This full-size truck, with the extended range battery, is more efficient than previous models.
The electric truck has a 240-mile EPA estimated range on a full charge. It takes 10 hours to go from 15% to a full 100% battery using the company’s Ford Charge Station Pro set-up for the home. With a 7,700-pound towing capacity and the ability to go 0 to 60 in 4.1 seconds, it’s a top performer for many people.
Tesla Model 3 Performance
The Tesla Model 3 Performance model for 2022 and 2023 qualifies for the full $7,500 tax credit, while the Model 3 Standard Range Rear Wheel Drive model is nearly there with $3,750 credit eligibility.
The Model 3 Performance vehicle has a range of 315 EPA estimated miles and hits 60 mph within 3.1 seconds, reaching maximum speeds of 162 mph, thanks to its aerodynamic design.
The 2023 Rivian R1T model qualifies for $3,750 in tax credits. This pickup truck brings some key features, including the ability to drive through as much as three feet of water and hit 60 mph in 3 seconds. Its exceptional road handling makes it feel more like a sports car than a hard-working truck. It gets 314 miles per full charge, too.
Volkswagen ID.4 AWD Pro
The 2023 ID.4 AWD Pro from Volkswagen earns the full $7,500 tax credit as well. This vehicle has much to offer, including a fun-to-drive design with great handling. It has an EPA-estimated range of 275 miles and charges from 10% to 80% in about 35 minutes.
The 2023 and 2024 model years for the Cadillac LYRIQ qualify for the full $7,500 tax credit. The 2024 rear-wheel-drive model gets a GM-estimated 308 range. It also provides 340 hp and 325 lb-ft of torque, making it a powerful vehicle to boot. Upgraded models also have some luxurious features added to them.
Ford Mustang Mach-E
The standard range battery Ford Mustang Mach-E for model years 2022 and 2023 meets the qualifications for the $3,750 tax credit. This true sports car is far removed from its gas-guzzling ancestors, getting an EPA estimated 224 to 312 miles, depending on the selected battery pack.
Chevrolet Equinox EV
The 2024 Chevrolet Equinox qualifies for the $7,500 tax credit. This SUV gets a GM-estimated 300 miles of electric range. Though it won’t be released until the fall of 2023, the vehicle has nice features, and requires just 10 minutes to reach a 70-mile charge range.
Jeep Grand Cherokee PHEV 4xe
The 2022 and 2023 models of the Grand Cherokee PHEV 4xe qualify for the $3,750 tax credit. This is a full-size hybrid SUV that has 375 hp, 470 lb.-ft of torque, and provides 6,000 pounds of towing capacity. It has a 25-mile all-electric range and a 470-mile driving range.
Tesla Model Y Performance
The 2022 and 2023 models of the Tesla Model Y Performance meet the $7,500 tax credit requirements with a 330-mile EPA-estimated range for its all-wheel-drive model. With room for up to seven people and cargo, it’s a larger vehicle that still has the ability to go from 0 to 60 mph in 3.5 seconds.
Chrysler Pacifica PHEV
Choose between the 2022 and 2023 models of the Chrysler Pacifica PHEV to receive the full $7,500 tax credit. The 2023 model, which is a plug-in hybrid minivan, has a battery that’s large enough to provide an impressive 500+ miles of range. It also has 115 safety and security features on board to keep everyone safe.
Lincoln Aviator Grand Touring
The 2022 and 2023 model years for the Lincoln Aviator Grand Touring are solid energy-efficient SUVs with the full $7,500 tax credit eligibility. The vehicle provides some power, too, including 400 hp and a towing capacity of 5,600 pounds. This plug-in hybrid vehicle has a 21-mile battery-only range and a total charge range of 460 miles.
The 2024 Chevrolet Silverado qualifies for the full tax break, with its 10,000-pound towing capacity and 754 hp engine. It has a GM-estimated 400-mile range, allowing for long trips without too many stops along the way. It also can go from 0 to 60 in 4.5 seconds.
Lincoln Corsair Grand Touring
To qualify for the $3,750 tax credit, consider the Lincoln Corsair Grand Touring for 2022 or 2023. This plug-in hybrid model features a 2.5L Atkinson-cycle, four-cylinder gas engine with a 28-mile battery-only range and 430 mile total range.
Ford Escape Plug-in Hybrid
Both the 2022 and 2023 models of the Ford Escape Plug-in Hybrid meet the qualifications for the $3,750 tax credit. It features an eight-speed automatic transmission, a 3,500-pound towing capacity, and room for up to five people. This vehicle gets 37 miles on battery-only and 520 miles in total range.
There are numerous vehicles that fall under these rules, and you should verify a particular vehicle on the Energy.gov website. Some key requirements are that the vehicle must have a battery capacity of at least 7 kilowatt hours, weigh less than 14,000 pounds in gross weight, and be made by a qualified manufacturer with final assembly in the U.S.
Don’t forget to ask your insurance provider if they can help you save money on car insurance, too.