Which EV models are eligible for the new tax credit up to $7,500? Complete list
Those who want to go green by driving electric cars may get tax credit up to $7,500, but not very many EV models will be eligible for the full amount.
Those who buy electric cars may be eligible to receive tax credit of up to $7,500. However, only particular models manufactured by Ford, General Motors, Stellantis, and Tesla will be qualified for the full amount under the new rules of the Treasury Department.
The new subsidy, which will last until 2032, is part of changes enacted in the Inflation Reduction Act to encourage the purchase of eco-friendly vehicles and reduce greenhouse emissions.
Short list of EV’s qualified to receive $7,500 tax credit
According to the government’s fuel economy website, “All-electric, plug-in hybrid, and fuel cell electric vehicles purchased new in 2023 or after may be eligible for a federal income tax credit of up to $7,500.”
Although this provision sounds inclusive, very few electric cars are eligible to receive the full subsidy when all qualifications are applied. You can check out the list of requirements to able to claim the credit on the FuelEconomy.gov website.
Customers who buy a car can have tax credit applied to their next return. Beginning next year, the tax credit can be transferred to a dealership, thus cutting the price when they buy a vehicle.
Car owners are qualified for the credit as long the vehicle’s price is less than $50,000 for sedans $80,000 for SUV’s and vans.
Which EV models are eligible for the new tax credit?