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Here are the Vehicles that are Eligible for US Clean Vehicle Tax Credits in 2023

The US government made significant changes to its criteria determining eligibility for the clean vehicle tax credit. Here are the models that still qualify.

  • The US changed the guidelines for its federal tax credits last year.

  • EVs and PHEVs need to have been assembled in North America and have an MSRP under $55,000 or $80,000, depending on the type, to be eligible.

  • This leaves 22 vehicles to choose from to benefit from the $7,500 tax credit.

The revisions made to the United States federal clean vehicle tax credits last year have created a fair amount of confusion as to which vehicles are eligible or not.

The main thing that changed with the government’s Inflation Reduction Act is that electric vehicles and plug-in hybrids need to have been manufactured in North America, meaning that many European and Asian vehicles that would have been eligible in 2021 or 2022 are no longer on the list.

Vehicles also need to have an MSRP that doesn’t exceed $55,000 or $80,000 in the case of SUVs, pickup trucks, and vans. This means that some vehicles’ entry-level versions qualify while more expensive trim levels are left out of the incentive program.

In addition, the vehicle category that determines the price limit for the tax credit is sometimes up to interpretation, which means some SUVs are considered hatchbacks by the government and are therefore subjected to a lower price limit.

With this in mind, here is the latest list of eligible 2021 through 2023 vehicles that was published by the Internal Revenue Service (IRS):

 

  • Audi Q5 TFSI e Quattro PHEV

2021 Audi Q5 Sportback | Photo: Audi
2021 Audi Q5 Sportback | Photo: Audi

MSRP up to $80,000. 2023 model year only.

  • BMW 330e

2021 BMW 330e xDrive | Photo: Olivier Delorme

MSRP up to $55,000.

  • BMW X5 xDrive 45e

2021 BMW X5
2021 BMW X5 45e | Photo: Olivier Delorme

MSRP up to $80,000

  • Cadillac Lyriq

2023 Cadillac Lyriq
2023 Cadillac Lyriq

MSRP up to $55,000.

  • Ford Escape PHEV

2021 Ford Focus PHEV | Photo: Evan Williams

MSRP up to $80,000.

  • Ford E-Transit

2022 Ford E-Transit electric van
2022 Ford E-Transit electric van | Ford

MSRP up to $80,000

  • Ford F-150 Lightning

2023 Ford F-150 Lightning | Photo: Benoit Charette

MSRP up to $80,000

  • Ford Mustang Mach-E

2021 Ford Mustang Mach-E
2021 Ford Mustang Mach-E | Photo: Olivier Delorme

MSRP up to $55,000.

  • Chevrolet Bolt EV

2022 Chevrolet Bolt EV
2022 Chevrolet Bolt EV | Photo: Olivier Delorme

MSRP up to $55,000.

  • Chevrolet Bolt EUV

2022 Chevrolet Bolt EUV
2022 Chevrolet Bolt EUV Photo: Chevrolet

MSRP up to $55,000.

  • Chrysler Pacifica e-Hybrid

2023 Chrysler Pacifica e-Hybrid | Photo: Chrysler

MSRP up to $80,000.

  • Jeep Grand Cherokee 4xe

2023 Jeep Grand Cherokee 4xe 30th Anniversary Edition | Photo: Jeep

MSRP up to $80,000.

  • Jeep Wrangler 4xe

2021 Jeep Wrangler Rubicon 4xe | Photo: Olivier Delorme

MSRP up to $80,000.

  • Lincoln Aviator Grand Touring

2021 Lincoln Aviator Grand Touring | Photo: Matt St-Pierre

MSRP up to $80,000.

  • Lincoln Corsair Grand Touring

2022 Lincoln CorsairGrand Touring | Photo: Matt St-Pierre

MSRP up to $55,000.

  • Nissan Leaf

2023 Nissan Leaf | Photo: Nissan
2023 Nissan Leaf | Photo: Nissan

MSRP up to $55,000.

  • Rivian R1S

Rivian R1S | Photo: Rivian

MSRP up to $80,000.

  • Rivian R1T

2023 Rivian R1T | Photo: Rivian

MSRP up to $80,000.

  • Tesla Model 3

2021-Tesla-Model-3
2021 Tesla Model 3 | Photo: Tesla

MSRP up to $55,000.

  • Tesla Model Y

2022 Tesla Model Y Performance | Photo: Vincent Aubé
2022 Tesla Model Y Performance | Photo: Vincent Aubé

MSRP up to $55,000 for 5-seater models, $80,000 for 7-seater versions.

  • Volkswagen ID.4

2023 Volkswagen ID.4 | Photo: Volkswagen

MSRP up to $55,000 on RWD models, $80,000 on AWD versions. 2023 model year only.

  • Volvo S60 Recharge

2023 Volvo S60 Recharge T8 | Photo: Volvo

MSRP up to $55,000.

Source: IRS.gov

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