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IRS EV Tax Credit 2023, Who Can Qualify Qualified Vehicles



IRS EV Tax Credit 2023, Who Can Qualify? Qualified Vehicles

The Internal Revenue Service (IRS) offers a tax credit of up to $7,500 for clean vehicles under Internal Revenue Code Section 30D. If you’re considering purchasing an Electric Vehicle (EV) or Fuel Cell Vehicle in 2023, you have the opportunity to take advantage of the IRS EV Tax Credit 2023. However, it’s important to meet all the qualifying criteria in order to be eligible for this credit. For a comprehensive understanding of the requirements and more detailed information, please continue reading until the conclusion of this text.

IRS EV Tax Credit 2023, Who Can Qualify Qualified Vehicles

By 2030, electric vehicles are projected to dominate the roads not only in the USA but also in numerous countries worldwide. This shift is crucial for the preservation of our environment, as it aims to minimize the use of vehicles dependent on fossil fuels. Consequently, the government of the USA is offering substantial tax credits for individuals purchasing electric vehicles. If someone is considering buying a new EV in the USA, it is imperative for them to meet all the qualifying criteria in order to avail themselves of these benefits.

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IRS EV Tax Credit 2023

Country USA
Credit Tax Credit on buying EVs & FCHs
Section Internal Revenue Code 30D
Credit Amount Upto $7500
Official Website
check Status IRS Refund Status

The Government of the USA is set to offer tax credits of up to $75,000 to buyers of both Electric Vehicles (EVs) and Fuel Cell Vehicles (FCVs). It’s important to note that as per the Internal Revenue Code Section 30D of the IRS, any electronic vehicle sold in 2023 or later is eligible for a tax credit of up to $7,500. This means that even if you purchase an EV or FCV after 2023, you can still take advantage of the tax credit. This official rule will be implemented in all states of the USA starting from January 1, 2023.

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IRS EV Tax Credit Eligibility

The eligibility criteria for the IRS EV Tax Credit have changed due to The Inflation Reduction Act of 2022. To qualify for the tax credit, an individual or business must purchase the vehicle for personal use and not for resale. Additionally, the vehicle must be primarily used in the United States of America.

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In addition to the above requirements, an individual’s modified adjusted gross income must not exceed $300,000 for married couples, $225,000 for heads of households, or $150,000 for others.

IRS EV Tax Credit Qualified Vehicles

Before exploring the list of qualified vehicles, it’s important to understand the eligibility criteria for a $7,500 tax credit. Please review the following criteria for detailed information:

  • The EV must have a minimum battery capacity of 7 kilowatts per hour.
  • The weight of the EV must be below 14,000 pounds (6350.293 kilograms).
  • The cost of the electric vehicle should not exceed $55,000.
  • Electric trucks and SUVs should not exceed a cost of $85,000.

The qualified manufacturer list includes:

  • American Honda Motor Co., Inc.
  • Audi of America, LLC
  • BMW of North America, LLC
  • Ford Motor Company (including Ford and Lincoln brands)
  • General Motors LLC (including GMC, Chevrolet, Buick, and Cadillac brands)
  • Hyundai Motor America
  • Jaguar Land Rover Ltd
  • Kia America Inc.
  • Mazda Motor of America Inc.
  • Mercedes-Benz USA, LLC
  • Mitsubishi Motors North America, Inc.
  • Nissan North America
  • Polestar Automotive USA Inc.
  • Porsche Cars North America, Inc. (Porsche AG)
  • Proterra Operating Company Inc.
  • Rivian Automotive, LLC
  • Stellantis N.V. (including Chrysler and Jeep brands)
  • Subaru of America Inc.
  • Tesla Inc.
  • Toyota Motor Sales, U.S.A., Inc
  • Volkswagen Group of America
  • Volvo Car North America, LLC
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Please note that not all electric vehicles manufactured by the mentioned manufacturers qualify for the tax credit. Refer to the list below for potentially eligible vehicles:

  • Audi Q5 TFSI e Quattro (PHEV)
  • BMW 330e
  • BMW X5 xDrive45e
  • Ford Escape Plug-In Hybrid
  • Ford E-Transit
  • Ford F-150 Lightning
  • Ford Mustang Mach-E
  • Lincoln Aviator Grand Touring
  • Lincoln Corsair Grand Touring
  • Chevrolet Bolt
  • Chevrolet Bolt EUV
  • Cadillac Lyriq
  • Nissan Leaf S, S Plus, SL Plus, SV & SV Plus
  • Rivian R1S
  • Rivian R1T
  • Chrysler Pacifica PHEV
  • Jeep Wrangler 4xe
  • Jeep Grand Cherokee 4xe
  • Tesla Model 3 Rear Wheel Drive & Long Range
  • Tesla Model Y All-Wheel Drive, Long Range & Performance
  • Volkswagen ID & ID.4 Pro, Pro S, S, AWD Pro and AWD Pro S
  • Volvo S60 (PHEV), Extended Range & T8 Recharge
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Please note that some of the vehicles listed above may be removed from the eligible electric vehicle list before or on March 2023. If you wish to purchase an EV and qualify for up to $7,500 in tax credit, it is advisable to act promptly.

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