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IRS EV Tax Credit 2023 | Who is Eligible to Apply? Qualified vehicles

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IRS EV Tax Credit 2023 | Who is Eligible to Apply? Qualified vehicles

IRS EV Tax Credit 2023 | Who is Eligible to Apply? Qualified vehicles. The Internal Revenue Service (IRS) is offering a significant tax credit for clean vehicles in 2023 under Internal Revenue Code Section 30D. If you’re considering the purchase of an Electric Vehicle (EV) or Fuel Cell Vehicle (FCV) this year, you can take advantage of the IRS EV Tax Credit 2023. However, to access this credit, you must meet specific qualifications. In this article, we’ll explore the eligibility criteria and provide insights into qualified vehicles.

Overview of IRS EV Tax Credit 2023

It anticipated that by 2030, electric vehicles will dominate roads not only in the USA but worldwide. This transition is essential for environmental preservation, reducing reliance on fossil fuels. To incentivize EV adoption, the US government is offering substantial tax credits for EV buyers. Individuals planning to purchase a new EV in the USA can potentially qualify for these credits.

Key Details

  • Country: USA
  • Credit: Tax Credit for EVs & FCHs
  • Section: Internal Revenue Code 30D
  • Credit Amount: Up to $7,500
  • Official Website: irs.gov

The US government is set to provide a tax credit of up to $7,500 for both Electric Vehicles and Fuel Cell Vehicles. According to the Internal Revenue Code Section 30D, any EV sold in 2023 or later is eligible for this credit. This rule came into effect officially on January 1, 2023, across all US states.

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IRS EV Tax Credit Eligibility

The eligibility criteria for claiming the IRS EV Tax Credit have been updated due to the Inflation Reduction Act of 2022. To qualify, the vehicle must be intended for personal use (not resale), and it must be primarily used in the United States of America.

Additionally, an individual’s modified adjusted gross income must not exceed $300,000, $225,000 for married couples, or $150,000 for heads of households or others.

IRS EV Tax Credit Qualified Vehicles

Before you explore the list of qualified vehicles, it’s crucial to understand the eligibility requirements for a $7,500 tax credit:

  • The EV must have a battery with a minimum capacity of 7 kilowatts per hour.
  • The vehicle’s weight must be below 14,000 pounds (approximately 6,350.293 kilograms).
  • Electric vehicles should not exceed a cost of $55,000.
  • Electric trucks and SUVs should not exceed a cost of $85,000.
  • The vehicle must be manufactured by a qualified manufacturer, as listed below:
    • 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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Not all Electric Vehicles from these manufacturers qualify for the tax credit. To identify potentially eligible vehicles, refer to the list below:

  • 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

Conclusion

Please note that some vehicles may be removed from the eligible electric vehicle list by March 2023. If you’re considering an EV purchase and want to benefit from up to $7,500 in tax credits, act promptly.

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