Americans Received Over $1 Billion in EV Tax Credits Already This Year (These Cars Qualify)

Thanks to a new tax credit issued as part of the Inflation Reduction Act, it’s cheaper than ever to get yourself into a new electric ride. The mechanism kicked in on Jan. 1 of this year and lets car dealers give tax credits of up to $7,500 for new EVs and $4,000 for used EVs directly at the point of sale. 

According to data released by the government on Wednesday, more than $1 billion in tax credits have been issued as upfront cash incentives to EV buyers — a difference from the previous policy where consumers didn’t receive the credits until they filed their annual tax return.

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. 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.

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.  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.

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.

The Ford F-150 Lightning for model years 2022 through 2024 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's EPA estimated range on a full charge is 230 miles. Using the company's Ford Charge Station Pro set-up for the home, it takes 10 hours to go from 15% to a full 100% battery.

With a 7,700-pound towing capacity and the ability to go 0 to 60 in 4.0 seconds, it’s a top performer for many people.

The Tesla Model 3 Performance model for 2022 through 2024 qualifies for the full $7,500 tax credit, while the 2023 and 2024 Model 3 Standard Range Rear Wheel Drive models are nearly there with $3,750 credit eligibility.

The Model 3 Performance vehicle has a range of 315 EPA-estimated miles and can reach 60 mph in 3.5 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 has some key features, including the ability to drive through as much as three feet of water and hit 60 mph in three seconds.

Its exceptional road handling makes it feel more like a sports car than a hard-working truck. It also gets 314 miles per full charge.

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.

The standard range battery Ford Mustang Mach-E for model years 2022 and 2023 meets the qualifications for the $3,750 tax credit. Unfortunately, the 2024 model does not qualify for any tax credits.

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.

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 mid-2024, the vehicle has nice features and requires just 10 minutes to reach a 70-mile charge range.

The 2022 through 2024 models of the Grand Cherokee PHEV 4xe qualify for the $3,750 tax credit.

This is a full-size hybrid SUV with 375 hp, 470 lb.-ft of torque, and 6,000 pounds of towing capacity. It has a 25-mile all-electric range and a 470-mile driving range.

The 2022 through 2024 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 can still go from 0 to 60 mph in 3.5 seconds.

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.

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.

To qualify for the $3,750 tax credit, consider the Lincoln Corsair Grand Touring for 2022 through 2024.

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.

The 2022 through 2024 models of the Ford Escape Plug-in Hybrid meet the qualifications for the $3,750 tax credit. 

They feature 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.

Numerous vehicles 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.