These Electric Cars Qualify For The EV Tax Credits
A new Inflation Reduction Act has been signed into law, and new electric vehicle tax credit rules have come with it. Initially, it was feared that no vehicle would qualify for the tax credit, given the stringent manufacturing requirements. Fortunately, the Department of Energy has assuaged some of those fears and has released a list of new EVs that qualify in 2022, as well as a few vehicles that will qualify next year.
The list isn't very long with only 18 vehicles qualifying for the credit in 2022. The Department of Energy also notes that the tax credit only applies to vehicles with final assembly in North America. There is a VIN decoder provided to see which vehicle qualifies as many vehicles have multiple assembly locations. Because when it comes to federal law, words like "simple" and "easy to understand" do not always apply.
Included on the list of new 2022 vehicles that qualify for the EV tax credit are the Audi Q5, the BMW 3-Series Plug-in, and the BMW X5 EV. The Chrysler Pacifica PHEV and Ford's F-150 Lightning, Mustang Mach-E, and Transit Van are eligible. For Jeep, both the Grand Cherokee PHEV and Wrangler 4xe PHEV will get buyers the $7500 tax credit. The Lincoln Aviator PHEV and Corsair Plug-in as well as the Lucid Air and Nissan Leaf were named as eligible vehicles. The Rivian R1S, R1T, and EDV qualify. The Volvo S60 rounds out the list of eligible 2022 vehicles.
For 2023, BMW's 3-Series Plug-in, the EQS from Mercedes-Benz, and the ubiquitous Nissan Leaf make the cut.
What about Tesla?
Tesla, General Motors, and Chevrolet are conspicuously absent from that list. Those manufacturers have already met the sales cap of 200,000 set by the Department of Energy for this year, but a number of vehicles will be eligible for the tax credit in 2023.
Both the current and next model year's Chevrolet Bolt will have to wait until 2023 to get the credit. The GMC Hummer Pickup and SUV versions will not be eligible this year. Tesla's entire lineup, the Model 3, Y, S, and X are not eligible either. Lastly, Cadillac's first all-electric vehicle, the Lyriq won't qualify until January of 2023.
If you were looking to get a good deal on either a Tesla or Chevy Bolt this year, you may want to wait until next year before pulling the trigger. A $7,500 tax credit isn't anything to sneeze at. Hopefully, those incentives will encourage more people to buy EVs in the coming years. Although vehicles like the Ford F-150 Lightning are an exciting look at the possible future of EVs, there still aren't a ton of options for those wanting to buy an affordable EV.