Which 2024 EVs qualify for the $7,500 EV tax credit?

In recent weeks, the IRS has added just a few more models, including the Volkswagen ID.4 and Nissan Leaf, to its list of North American-built electric vehicles qualifying for the EV tax credit in calendar yr 2024.

As expected, the list stays very short. 

Noteworthy Tesla omissions include many of the Model 3 lineup (the Performance version is the one one which now qualifies), in addition to all the Model S lineup. The Ford Mustang Mach-E is totally disqualified for now.

Also of note: No Rivian electric truck or SUV qualifies for the total $7,500 tax credit amount in 2024, at the moment. The credit amount on these models has fallen to $3,750.

Tougher rules on EV battery origin = fewer qualified

In most of those examples, that’s since the tax credit, as revamped under the Inflation Recovery Act of 2022, phases in tougher rules for the origin of battery components and demanding minerals. 

As of 2024, along with North American assembly, 60% of battery parts will have to be North American–sourced with a purpose to qualify for half of the credit amount ($3,750). That’s up from a 50% requirement for 2023.

The opposite $3,750 leans on a stipulation that no less than 50% of critical mineral content in batteries be North American–sourced (or from countries through which there’s a free-trade agreement in place). 

2023 Ford Mustang Mach-E

Applying a China filter

While automakers had known about those 2024 rules for the previous 16 months or more, there’s one other dealbreaker that was just laid out jarringly near the beginning of the yr. Starting Jan. 1, 2024, as detailed by the Department of Energy on Dec. 1, 2023, any vehicles with key battery components sourced from a “foreign entity of concern”—China, Russia, Iran, or North Korea—are disqualified in 2024, as will corporate subsidies if a “parent entity” from considered one of those countries directly holds greater than 50% of the automaker’s interest. 

In 2025, the tax credit rules will probably be prolonged to mining, processing, and recycling of critical minerals. It’s all a part of a comprehensive push from the Biden administration to foster a domestic supply chain for EVs. 

For automakers and suppliers, there may additionally be other logistical hurdles for motors, inverters, and other propulsion components accompanying these battery-level changes.

2023 BMW i7 xDrive60

EV leasing loophole continues

None of this is applicable to the leasing of electrical vehicles, as an EV leasing loophole continues on, applying the total $7,500 of federal money to industrial vehicles no matter their origin, domestic content, or price—which effectively means, in lots of cases, that the federal government is subsidizing imported luxury EVs. 

The credit becomes a dealership rebate

Because the EPA emphasizes in its list, buyers will need to envision the vehicle identification number (VIN) to guarantee that a specific EV on the sales lot is qualified for the credit. For now, that’s being done in a proprietary way for every automaker—GM, as an illustration, has deployed a VIN-check tool for its dealerships—but that’s one other thing that will change into centralized within the near future. 

Also of note: The EV tax credit becomes an quick dealership rebate in 2024, giving EV buyers quick access to the credit and allowing them to finance a lower amount up front for the vehicle. It rests on a declaration from the customer that they qualify, and dealerships have to register with the IRS. With lower than half of franchised dealerships registered for the tax credit by the tip of the yr, even that aspect will probably be messy. 

For the reason that start of 2023, income and price caps have been in effect. So as to claim the credit on an EV purchase, buyers have to slot under an adjusted gross income limitation of $300,000 for married couples filing jointly, $225,000 for head of household, or $150,000 for other filers. Vehicle price caps also apply: $55,000 for brand spanking new cars and $80,000 for pickup trucks, SUVs, and vans.

2024 Rivian R1T

Which models qualify?

Here’s the list of models that qualify for the total $7,500 unless indicated for 2024:

2023-2024 Audi Q5 plug-in hybrid ($3,750)
2024 Cadillac Lyriq
2022-2023 Chevrolet Bolt EV
2022-2023 Chevrolet Bolt EUV
2024 Chevrolet Blazer EV (GM-confirmed but not yet IRS-listed)
2022-2024 Chrysler Pacifica EV
2022-2024 Ford Escape Plug-In Hybrid ($3,750)
2022-2024 Ford F-150 Lightning (Prolonged Range and Standard Range)
2024 Honda Prologue
2022-2024 Jeep Grand Cherokee 4xe ($3,750)
2022-2024 Jeep Wrangler 4xe ($3,750)
2022-2024 Lincoln Corsair Grand Touring ($3,750)
2024 Nissan Leaf ($3,750)
2023-2024 Rivian R1T (Dual-Motor; Large, Standard, Standard+ Pack) ($3,750)
2023-2024 Rivian R1S (Dual-Motor; Large, Standard, Standard+ Pack) ($3,750)
2023-2024 Tesla Model 3 Performance
2023-2024 Tesla Model X Long Range
2023-2024 Tesla Model Y (Performance and AWD)
2024 Tesla Model Y (Rear-Wheel Drive)
2023-2024 Volkswagen ID.4

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UPDATED March 12 from a bit originally posted January 2.