Inflation Reduction Act: Which electric vehicles still qualify for federal EV tax credit
With the stroke of a pen on Tuesday, President Biden made a long list of vehicles ineligible for the federal electric car tax credit.
The new rules included within the Inflation Reduction Act immediately eliminate any fully electric or plug-in hybrid vehicle built outside of North America from qualifying.
The Hyundai Ioniq 5, Kia EV6 and Toyota Rav4 Prime are among the models from mass-market brands that are no longer eligible for the tax credit, based on their manufacturing locations.
Additional sale price and income caps go into effect on January 1, 2023, as do restrictions on where the source materials for the batteries come from.
According to the Alliance for Automotive Innovation, the trade group that represents most of the automakers who sell vehicles in the United States, it is possible that no vehicles will be ready to meet the battery rules by the end of the year.
Vehicles from General Motors and Tesla, which both exhausted their credits under the previous program that phased them out after 200,000 units were sold, will not become eligible again under the new rules until 2023.
READ MORE: Most electric vehicles won't qualify for tax credit despite proposed bill
One caveat to all of this is that anyone who had entered a binding purchase contract prior to the passage of the law can still claim the credit under the old rules, regardless of when the vehicle is finally delivered.
Below is a list of the only vehicles that are currently on sale that qualify, according to the Energy Department, which cautions that some models are made in multiple locations and that only the North American-manufactured examples are eligible:
- 2022 Audi Q5 plug-in hybrid
- 2022 BMW 3-series plug-in hybrid
- 2022 BMW X5 plug-in hybrid
- 2022 Chrysler Pacifica Hybrid
- 2022 Ford Escape Plug-in Hybrid
- 2022 Ford F-150 Lightning\
- 2022 Ford Mustang Mach-E
- 2022 Ford E-Transit
- 2022 Jeep Grand Cherokee 4xe
- 2022 Jeep Wrangler 4xe
- 2022 Lincoln Aviator Grand Touring
- 2022 Lincoln Corsair Grand Touring
- 2022 Lucid Air
- 2022 Nissan Leaf
- 2022 Rivian EDV
- 2022 Rivian R1S
- 2022 Rivian R1T
- 2022 Volvo S60 Recharge
- 2023 BMW 3-series plug-in hybrid
- 2023 Mercedes EQS SUV
- 2023 Nissan Leaf
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Volkswagen has also started producing the ID.4 at its Chattanooga, Tennessee, factory and qualifying vehicles are expected to begin deliveries before the end of 2022.
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