'ZDNET Recommends': What exactly does it mean?
ZDNET's recommendations are based on many hours of testing, research, and comparison shopping. We gather data from the best available sources, including vendor and retailer listings as well as other relevant and independent reviews sites. And we pore over customer reviews to find out what matters to real people who already own and use the products and services we’re assessing.
When you click through from our site to a retailer and buy a product or service, we may earn affiliate commissions. This helps support our work, but does not affect what we cover or how, and it does not affect the price you pay. Neither ZDNET nor the author are compensated for these independent reviews. Indeed, we follow strict guidelines that ensure our editorial content is never influenced by advertisers.
ZDNET's editorial team writes on behalf of you, our reader. Our goal is to deliver the most accurate information and the most knowledgeable advice possible in order to help you make smarter buying decisions on tech gear and a wide array of products and services. Our editors thoroughly review and fact-check every article to ensure that our content meets the highest standards. If we have made an error or published misleading information, we will correct or clarify the article. If you see inaccuracies in our content, please report the mistake via this form.
The new EV tax credit is complicated. Here's who qualifies
Electric vehicle (EV) tax credit policies got a major overhaul in August with the Inflation Reduction Act. From January 2023 onwards, your EV tax credit is determined by your income, the price of the car you want, and where it came from.
What income range qualifies for the new EV tax credit?
Tax credits now only apply to buyers with incomes less than or equal to $150,000 for single filers, $225,000 for heads of household, and $300,000 for joint filers.
Also: The 5 best electric cars: Plus, the cheapest EV available
What car price range qualifies?
The price of the new EV purchased must be less than $55,000 for cars and below $80,000 for SUVs, pickup trucks, and vans in order to qualify.
Do used EVs qualify for the tax credit?
The new credit expands eligibility by including used EVs, as well as new ones -- if you buy a used EV, you could receive a credit of up to $4,000.
What are the EV manufacturer limitations?
If you want to purchase an EV with an up to $7,500 tax credit, you can only consider EVs assembled in North America and powered by batteries with materials sourced from the US or its free trade partners. Essentially, your new electric car needs a "Made in America" stamp.
These provisions limit the manufacturers that qualify for the credit. According to PBS, battery materials processed in China power the vehicles of quite a few American EV manufacturers, including Tesla. The new credit also raises the bar for plug-in hybrids or PHEVs: TechCrunch notes that new PHEVs need 7 kWh battery packs in order to qualify. One of the aims of the act is to make electric cars more affordable, but fewer models of EVs meet all of these parameters.
Also: I loved driving the Hyundai Ioniq 5 and Kia EV6. Here's why I can't buy one
How do I claim an EV tax credit?
Instead of financing the full price of the car and then getting money back when filing taxes, buyers can immediately purchase the car at the dealership with the credit deducted from the price.
How many times can I claim the EV tax credit?
According to Bankrate, two people in the same household can separately claim the credit if they buy two EVs individually. If they buy an EV together, the credit only applies once.
How do I get a $7,500 EV tax credit?
Starting January 2023, the dealership should have the tax credit already factored into the price. You get the credit included with the price of the EV.
Here's a list of vehicles that qualify for the tax credit, taken directly from the Department of Energy website. If there's a "Manufacturer sales cap met" note, that means that the manufacturer reached their limit of EV credits used and isn't currently eligible. These are all of the EVs assembled in North America.
Model Year | Vehicle | Note |
2022 | Audi Q5 | |
2022 | BMW 330e | |
2022 | BMW X5 | |
2022 | Chevrolet Bolt EUV | Manufacturer sales cap met |
2022 | Chevrolet Bolt EV | Manufacturer sales cap met |
2022 | Chrysler Pacifica PHEV | |
2022 | Ford Escape PHEV | |
2022 | Ford F Series | |
2022 | Ford Mustang MACH E | |
2022 | Ford Transit Van | |
2022 | GMC Hummer Pickup | Manufacturer sales cap met |
2022 | GMC Hummer SUV | Manufacturer sales cap met |
2022 | Jeep Grand Cherokee PHEV | |
2022 | Jeep Wrangler PHEV | |
2022 | Lincoln Aviator PHEV | |
2022 | Lincoln Corsair Plug-in | |
2022 | Lucid Air | |
2022 | Nissan Leaf | |
2022 | Rivian EDV | |
2022 | Rivian R1S | |
2022 | Rivian R1T | |
2022 | Tesla Model 3 | Manufacturer sales cap met |
2022 | Tesla Model S | Manufacturer sales cap met |
2022 | Tesla Model X | Manufacturer sales cap met |
2022 | Tesla Model Y | Manufacturer sales cap met |
2022 | Volvo S60 | |
2023 | BMW 330e | |
2023 | Bolt EV | Manufacturer sales cap met |
2023 | Cadillac Lyriq | Manufacturer sales cap met |
2023 | Mercedes EQS SUV | |
2023 | Nissan Leaf |