The Inflation Reduction Act broke the credit into two halves: You can claim $3,750 if at least half of the value of your vehicle's battery components are manufactured or assembled in North America. There is also a ceiling on the adjusted gross income to qualify for the credit.įind the right car for you View Local Inventory Which EVs are eligible for the full $7,500 tax credit?.The manufacturing cap, which disqualified automakers that have manufactured more than 200,000 EVs, has been lifted.For critical minerals, the cutoff is 2025. Beginning in 2024, vehicles that contain battery parts from 'a foreign entity of concern' will be unable to claim any of the credit.Starting in 2024, the credit can be implemented at the point of sale as 'cash on the hood,' meaning you can apply it toward the purchase price of your vehicle.

For vans, SUVs and light trucks, the ceiling is $80,000. For passenger cars, the manufacturer's suggested retail price, or MSRP, must be $55,000 or less. There is a price cap on qualifying EVs.The Inflation Reduction Act made several major changes to the tax credit: What are the requirements to qualify for the EV tax credit? Here's what you need to know about the EV tax credit, including how to claim it and which cars qualify for it.įor more on electric vehicles, see how many charging stations there are in your state and lay your eyes on the first hybrid Corvette. The changes trimmed the number of models eligible in the short run, but the Biden administration has said the new guidance will encourage more domestic companies to manufacture zero-emission vehicles. Read more: Tough New Emission Standards Could Drive Up EV Sales This story is part of Taxes 2023, CNET's coverage of the best tax software, tax tips and everything else you need to file your return and track your refund.

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