Inflation Reduction Act Now Lists Tesla, Chevy Among EVs That Qualify For New Tax Credit

A number of electric vehicles are now qualified for the $7,500 tax credit that was enacted into law as part of the $430 billion Inflation Reduction Act a year ago as of January 1.

The Internal Revenue Services has published a growing list of automobiles earlier this week that could be eligible for the tax credit, reducing the amount some vehicle buyers may be eligible for.

A Lot Of Details Are Still Unclear A Of The Moment

Many new and prospective customers are uncertain about whether they qualify for the federal tax credit for electric vehicles as sales of electric vehicles continue to soar.

However, when their manufacturer reached the previous credit's sales threshold of 200,000 vehicles, certain new models on the list lost their eligibility.

The Verge writes that because of this, others recently moved their manufacturing to North America, in hopes of fulfilling one of the essential requirements of the law.

The Treasury Department and the IRS released some new regulations on the Inflation Reduction Act's (IRA) EV tax credit, which is good news for automakers and consumers.

The Treasury Department has set a March deadline for the release of guidelines on some of the trickier issues involving the sourcing of battery material, so there are still a lot of unanswered questions.

With that, the Biden administration is under pressure from foreign automakers to give them a piece of the action.

Meanwhile, Senator Joe Manchin (D-WV) is threatening to obstruct implementation in the meantime to stop businesses from taking advantage of loopholes.

However, Elon Musk, CEO of Tesla, is complaining that it's "messed up" because some Tesla Model Y variants that cost more than $80,000 don't qualify yet a number of hybrid Jeeps do.

Read More: Do the Current EVs in the Market Qualify for the Newly Expanded Tax Credits for Electric Vehicles?

Here Is A List Of The Vehicles That Qualify

The Verge provides a list of electric vehicles qualified for the new tax credit, which can be seen below:

2023

Audi Q5 TFSI e Quattro (PHEV)

$80,000

2021, 2022, 2023

BMW 330e

$55,000

2021, 2022, 2023

BMW X5 xDrive45e

$80,000

2022, 2023

Ford Escape Plug-In Hybrid

$80,000

2022, 2023

Ford E-Transit

$80,000

2022, 2023

Ford F-150 Lightning

$80,000

2022, 2023

Ford Mustang Mach-E

$55,000

2022, 2023

Lincoln Aviator Grand Touring

$80,000

2022, 2023

Lincoln Corsair Grand Touring

$55,000

2022, 2023

Chevrolet Bolt

$55,000

2022, 2023

Chevrolet Bolt EUV

$55,000

2022, 2023

Cadillac Lyriq

$55,000

2021, 2022, 2023

Nissan Leaf S

$55,000

2021, 2022

Nissan Leaf S Plus

$55,000

2021, 2022

NIssan Leaf SL Plus

$55,000

2021, 2022

Nissan Leaf SV

$55,000

2021, 2022, 2023

Nissan Leaf SV Plus

$55,000

2022, 2023

Rivian R1S

$80,000

2022, 2023

Rivian R1T

$80,000

2022, 2023

Chrysler Pacifica PHEV

$80,000

2022, 2023

Jeep Wrangler 4xe

$80,000

2022, 2023

Jeep Grand Cherokee 4xe

$80,000

2022, 2023

Tesla Model 3 Rear Wheel Drive

$55,000

2022, 2023

Tesla Model 3 Long Range

$55,000

2022, 2023

Tesla Model Y All-Wheel Drive - 7 seat variant (3-rows)

$80,000

2022, 2023

Tesla Model Y Long Range - 7 seat variant (3-rows)

$80,000

2022, 2023

Tesla Model Y Performance - 7 seat variant (3-rows)

$80,000

2022, 2023

Tesla Model Y All-Wheel Drive - 5 seat variant (2-rows)

$55,000

2022, 2023

Tesla Model Y Long Range - 5 seat variant (2-rows)

$55,000

2022, 2023

Tesla Model Y Performance - 5 seat variant (2-rows)

$55,000

2023

Volkswagen ID.4

$55,000

2023

Volkswagen ID.4 Pro

$55,000

2023

Volkswagen ID.4 Pro S

$55,000

2023

Volkswagen ID.4 S

$55,000

2023

Volkswagen ID.4 AWD Pro

$80,000

2023

Volkswagen ID.4 AWD Pro S

$80,000

2022

Volvo S60 (PHEV)

$55,000

2022

Volvo S60 Extended Range

$55,000

2023

Volvo S60 T8 Recharge (Extended Range)

$55,000


For now, these are the EVs that qualify, but if further rules were to be implemented, they might significantly cut down the qualifying list.

According to Yahoo Finance, it is important to remember that the IRA's requirements for the consumer tax credit for electric vehicles (EVs) required:

  • vehicles to be below a certain price ($55,000 for cars, $80,000 for SUVs and pickups)

  • buyers' income to be $300K in adjusted gross income or below for joint filers and $150K for single filers

  • a percentage of critical battery materials and battery assembly to be U.S. based

  • final assembly of the vehicle to take place in North America

Related Article: These EVs Qualify for the Upcoming US Federal Tax Credit

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