Electric vehicle tax credit worth up to $7,500 in 2024: how to qualify

A tax credit that was enhanced in the Inflation Reduction Act is being made easier to access. The $7,500 electric vehicle tax credit used to only be accessed through tax returns but a major change means it can now be qualified upfront when the car is purchased.

This means the the full tax break can be qualified for even if they don’t owe federal taxes, making it basically a $7,500 discount on an electric vehicle.

How to qualify for the credit

In accordance with the provisions of the legislation, for a person to be eligible for a credit of up to $7,500 they must have had an income of less than $150,000, or $300,000 for couples. The vehicle must be for your own use and in the US.

It is worth mentioning that the credit only covers electric vehicles with a value of up to $55,000 or up to $80,000 for trucks. While buyers can receive up to $7,500 of the credit, keep in mind that there are a series of additional requirements that must be satisfied to receive the full entitlement.

Which vehicles are eligible for the EV tax credit?

According to the Department of Energy, 29 electric models are currently manufactured in the US, courtesy of the following automotive brands: Audi, BMW, Chevrolet, Chrysler, Ford, GMC, Jeep , Lincoln, Lucid, Nissan, Rivian, Tesla, Volvo, Cadillac, Mercedes and Volkswagen.

For a vehicle to be eligible, it must:

The IRS provides this list of vehicles eligible for the tax credit of up to $7,500 from the IRS.

Vehicles purchased on or before 16 August 2022, may be eligible for a $7,500 tax credit as well. However, the eligibility requirements are different. After that date, a final assembly in North America requirement was added.