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

• 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

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

• BMW 330e

MSRP up to $55,000.

• BMW X5 xDrive 45e

MSRP up to $80,000

• Cadillac Lyriq

MSRP up to $55,000.

• Ford Escape PHEV

MSRP up to $80,000.

• Ford E-Transit

MSRP up to $80,000

• Ford F-150 Lightning

MSRP up to $80,000

• Ford Mustang Mach-E

MSRP up to $55,000.

• Chevrolet Bolt EV

MSRP up to $55,000.

• Chevrolet Bolt EUV

MSRP up to $55,000.

• Chrysler Pacifica e-Hybrid

MSRP up to $80,000.

• Jeep Grand Cherokee 4xe

MSRP up to $80,000.

• Jeep Wrangler 4xe

MSRP up to $80,000.

• Lincoln Aviator Grand Touring

MSRP up to $80,000.

• Lincoln Corsair Grand Touring

MSRP up to $55,000.

• Nissan Leaf

MSRP up to $55,000.

• Rivian R1S

MSRP up to $80,000.

• Rivian R1T

MSRP up to $80,000.

• Tesla Model 3

MSRP up to $55,000.

• Tesla Model Y

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

• Volkswagen ID.4

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

• Volvo S60 Recharge

MSRP up to $55,000.

Source: IRS.gov