The $7500 US tax credit for electric vehicles (EVs) is a government incentive designed to encourage the adoption of EVs and reduce our reliance on fossil fuels. The credit is available to consumers who purchase new EVs for personal use and is equal to either $7500 or the actual sales tax paid on the vehicle, whichever is less. Here we listed all EVs eligible for a $7500 US Tax Credit. We will keep adding new cars often. The credit is available for the first 200,000 qualifying EVs sold by each manufacturer, after which it begins to phase out. The credit has successfully promoted EV adoption, with over 600,000 sold in the US in 2022. However, the credit is set to expire at the end of this year. Despite this, the future of EVs looks bright due to increasing investment in electric technology and declining costs.
EVs $7500 US Tax Credit
The $7500 US tax credit for electric vehicles (EVs) has been a significant incentive for many consumers considering the switch to electric transportation. This tax credit, implemented as part of the Energy Improvement and Extension Act of 2008, was designed to encourage the adoption of EVs and help reduce our reliance on fossil fuels.
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Restrictions
The tax credit is available for new EVs purchased for personal use and is equal to $7500 or the actual sales tax paid on the vehicle, whichever is less. The credit is available for the first 200,000 qualifying EVs sold by each manufacturer, after which the credit begins to phase out for that manufacturer. To qualify for the credit, the EV must be powered solely by an electric motor that draws electricity from a battery with a capacity of at least 4 kWh.
The credit has been a successful incentive, with over 600,000 EVs sold in the US in 2022 alone. However, the distinction is set to expire at the end of this year, meaning that consumers who want to take advantage of it will need to act quickly.
Despite the expiration of the credit, the future of EVs looks bright. Many automakers are making significant investments in electric technology, and the cost of EVs decreases as the technology improves. In addition, many states and cities are offering additional incentives for EVs, such as access to carpool lanes and free or reduced-price parking.
List of EVs eligible for $7500 US Tax Credit
| Model year | Vehicle Description | Applicable MSRP limit |
| 2023 | Audi Q5 TFSI e Quattro (PHEV) | $80,000 |
| 2021, 2022, 2023 | BMW 330e | $55,000 |
| 2021, 2022, 2023 | BMW X5 xDrive45e | $80,000 |
| 2022, 2023 | Ford Escape Plug-In Hybrid | $80,000 |
| 2022, 2023 | Ford E-Transit | $80,000 |
| 2022, 2023 | Ford F-150 Lightning | $80,000 |
| 2022, 2023 | Ford Mustang Mach-E | $55,000 |
| 2022, 2023 | Lincoln Aviator Grand Touring | $80,000 |
| 2022, 2023 | Lincoln Corsair Grand Touring | $55,000 |
| 2022, 2023 | Chevrolet Bolt | $55,000 |
| 2022, 2023 | Chevrolet Bolt EUV | $55,000 |
| 2022, 2023 | Cadillac Lyriq | $55,000 |
| 2021, 2022, 2023 | Nissan Leaf S | $55,000 |
| 2021, 2022 | Nissan Leaf S Plus | $55,000 |
| 2021, 2022 | Nissan Leaf SL Plus | $55,000 |
| 2021, 2022 | Nissan Leaf SV | $55,000 |
| 2021, 2022, 2023 | Nissan Leaf SV Plus | $55,000 |
| 2022, 2023 | Rivian R1S | $80,000 |
| 2022, 2023 | Rivian R1T | $80,000 |
| 2022, 2023 | Chrysler Pacifica PHEV | $80,000 |
| 2022, 2023 | Jeep Wrangler 4xe | $80,000 |
| 2022, 2023 | Jeep Grand Cherokee 4xe | $80,000 |
| 2022, 2023 | Tesla Model 3 Rear Wheel Drive | $55,000 |
| 2022, 2023 | Tesla Model 3 Long Range | $55,000 |
| 2022, 2023 | Tesla Model Y All-Wheel Drive – 7-seat variant (3-rows) | $80,000 |
| 2022, 2023 | Tesla Model Y Long Range – 7-seat variant (3-rows) | $80,000 |
| 2022, 2023 | Tesla Model Y Performance – 7-seat variant (3-rows) | $80,000 |
| 2022, 2023 | Tesla Model Y All-Wheel Drive – 5-seat variant (2-rows) | $55,000 |
| 2022, 2023 | Tesla Model Y Long Range – 5-seat variant (2-rows) | $55,000 |
| 2022, 2023 | Tesla Model Y Performance – 5-seat variant (2-rows) | $55,000 |
| 2023 | Volkswagen ID.4 | $55,000 |
| 2023 | Volkswagen ID.4 Pro | $55,000 |
| 2023 | Volkswagen ID.4 Pro S | $55,000 |
| 2023 | Volkswagen ID.4 S | $55,000 |
| 2023 | Volkswagen ID.4 AWD Pro | $80,000 |
| 2023 | Volkswagen ID.4 AWD Pro S | $80,000 |
| 2022 | Volvo S60 (PHEV) | $55,000 |
| 2022 | Volvo S60 Extended Range | $55,000 |
| 2023 | Volvo S60 T8 Recharge (Extended Range) | $55,000 |
Wrap Up
The $7500 US tax credit has been a valuable incentive for EV adoption. Its expiration should not deter consumers from considering an electric vehicle a viable transportation option. With the continued development and improvement of electric technology, the future of EVs looks bright, and the benefits of switching to electric transportation are clear. When you plan to buy EVs, It is always wise to utilize the available incentives. Because Compared with regular Cars and features, EVs always cost high. But you have benefits also. Did you find your favorite EV on the list? Share your comments below.
Selva Ganesh is the Chief Editor of this Blog. He is a Computer Science Engineer, An experienced Android Developer, Professional Blogger with 8+ years in the field. He completed courses about Google News Initiative. He runs Android Infotech which offers Problem Solving Articles around the globe.
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