Here Are All The EVs That Qualify For The Federal Tax Credit In 2024
More than 50% of the electric vehicles sold in America today just lost their federal tax credit that’s because the IRS posted its 2024 list of electric vehicles that qualify for the tax credit in today’s video I’m going to go over why that is why the list is likely to
Change in the coming months and then I’m going to go over every fully electric vehicle as well as every plugin hybrid that is currently on the irs’s list for the federal tax credit incentive So I said that more than 50% of the EVS that qualified for the federal tax credit at least some portion of it in 2023 are not on the irs’s list by my count 43 EVs and plug-in hybrids qualified in 2023 that’s down to 19 on this list however that might change and that’s
Because the IRS gave manufacturers up until December 18th to submit documentation to prove their vehicles qualified for the federal tax credit evidently not all oil makers met that deadline at least not for all their vehicles which is kind of crazy because they knew this was coming since the new
Tax credit was signed into law with the inflation reduction act in like I thing was like July of 2022 so it’s a year and a half ago they knew this and they still didn’t make the deadline in any event um so more Vehicles may be added to this
List so what I’m going to do here at state of charge is update this video as Vehicles get added if they get added so if you’re watching this video now in the beginning of 2024 this is most likely the latest version but if you’re watching it later in 2024 what I would
Do is go to my main Channel state of charge and click the search feature and type in federal tax credit because there might be a newer version of this video that includes more Vehicles than what we’re going to talk about here today so check that out if you’re interested in
Getting the latest version of this video because I suspect I’m going to have to update it okay so the inflation reduction act signed in in 2022 reshaped the federal tax credit and what it did was it incentivized domestic production of EVs and the battery components so first of all the vehicle final assembly
Has to be in North America for it to even just qualify for the for the list now that upset a lot of automakers like the German Brands the the Korean Brands uh Japanese brands um but that’s the way it is we’re incentivizing domestic manufacturing but then that’s just the
First step to get pasted then there’s two steps that split the tax credit in half each step gives the uh tax credit another $3,750 or allows you to qualify for $33,750 and the two together meet the uh total of $7,500 the first component is the critical minerals component and
That’s the percentage of domestically produced or extracted uh minerals that go into the EV batteries the second part is the battery components and that’s where the battery components are made so in 2023 the critical mineral requirement was 40% of the minerals had to be domestically produced and that went up
To 50% an extra 10% the the battery component section now went up from 50% in 20 23 to 60% in 2024 so that’s why some of the vehicles aren’t going to qualify anymore and this gets harder every year so every year we’re going to have to do this vehicles are going to
Drop off then they’re going to get added um you know I think it’s a good thing that we’re incentivizing domestic manufacturing for all vehicles not just electric vehicles but the only thing I will say about this and I’ve spoken with a lot of Industry professionals that the aggressive timeline might be a little
Too strict for a lot of Manufacturers to keep up with we’ll see how that pans out maybe not maybe they’ll they’ll meet it but uh I suspect for a while there’s going to be a lot less vehicles that qualify for the tax credit that used to
Uh previously okay so let’s go over the list of vehicles that currently qualify for the federal tax credit I going to break it up into two the all electric battery electric vehicles or bevs Bev is a acronym for battery electric vehicle and then we’ll go after the uh plug-in
Hybrids or pevs uh we’ll do those secondly and then when we’re done going over all the vehicles that currently qualify I’m going to explain a little bit more about how the tax credit was changed from uh you uh submitting your documents when you do your taxes now
It’s a point of sale tax credit where you get it right at the dealership um but that could be problematic for a lot of people we’ll talk about that and also talk a little bit more about the qualifications uh to qualify for the federal tax credit you as an individual
Um but I want to point out right up front that this doesn’t affect the uh tax credit for the US EVS That Remains the Same and I’ll go over the qualifications for that also at the end but now let’s take a look at the vehicles that are on the irs’s list I’m
Going to do this alphabetically we’re going to start off with Chevrolet okay so you’ll notice here for Chevrolet it’s just the bolt EV and the bolt euv and model years 2022 through 2023 now Chevrolet ended production of the bolt EV and euv this year much to my
Appointment I have a 2023 bolt EV and I absolutely love it so the bolt and bolt euv both qualify for the full $7,500 now there’s an MSRP limit of $555,000 that depends on the classification of the vehicle the bolt EV and euv have a limit of 55,000 I
Think it’d be very hardpressed to option an EV or an euv to 55,000 a matter of fact I think it’s impossible uh because it’s a very uh uh let’s say aggressively priced event I got mine after the federal tax credit and the tax credit that New Jersey has here we have a point
Of Sal rebit of $4,000 that the bolt EV qualified for I was all in for about $177,000 fantastic deal and I urge my followers and people watching this video if there’s any bolt EVS or euvs left on your local dealers Lots go buy them because they it’s a
Great vehicle at a fantastic price especially considering now you’re going to get that $7,500 as cash on the hood you’re going to walk out of the dealership not paying it you don’t have to file for it later so um it’s a shame that both EV and E is going away at
Least temporarily Chevy says they’re going to bring it back in 2025 we’ll see about that but it’s really a shame it’s going away CU they’re good vehicles at Fantastic prices there’s no other Chevrolets on here you don’t see the Equinox EV the Silverado you don’t see
The Blazer EV those are all the ultium based EVS that we hope uh are going to qualify for this list and that GM just just hasn’t gotten their act together and supplied the IRS with all the documentation it’ll be a shame if those don’t qualify for this but it’s going to
Depend on the uh mineral components and as well as the battery components so hopefully we’ll be adding those to the list later on this video as well as all of the videos here on stateof charge is sponsored by qmerit once I’ve helped you decide which electric vehicle charger
You’re going to buy then follow the link in the descript description of my videos and have qmerit install it next up let’s take a look at the all electric offerings by Ford that’s currently on the irs’s tax incentive list all right it’s really just one vehicle the Ford F150 Lightning now
There’s two versions of it the extended range battery and the standard range battery but it’s really just one vehicle no Ford Mustang Mai here on the list wow and that is disappointing hopefully like GM is going to submit the proper documentation and show that it qualifies
Maybe it doesn’t qualify it’s a shame if it doesn’t but as of now the only vehicles that qualify are the Ford F-150 Lightning both extended range and standard range battery and they qualify for the full $7,500 now because these are trucks the MSRP limit is higher you have to keep
The price under $80,000 now it’s going to be very hard to do that with an extended range battery because while the starting price is just under that it’s difficult to not to get any options you can make it work you can get an extended range F-150 Lightning for under 80,000
And get the tax credit but it’s a little difficult with the standard range battery uh it’s a lot easier there’s a lot more Headroom in there you could really load it up a standard range battery lightning if you wanted to and still qualify for the federal tax credit
Now let’s take a look at the vehicles offered by rivan that are on this year’s IRS tax credit list okay it’s pretty much rivan’s in time High lineup here you’ll start off with the r1s the dual motor large battery pack the r1s quad motor large battery pack
Then we have the r1t dual motor large battery pack the r1t dual motor Max pack and the r1t quad motor large pack and the one thing I will mention here is that it’s going to be very difficult to get a new order of a rivan vehicle below
The $80,000 cap now there are some models that will squeeze under the cap but many of these models here will have a starting MSRP of over $80,000 so while they’re on the approved list I don’t think that you’ll be able to get all of these trims and still qualify for the
Tax credit and finally let’s take a look at the Tesla vehicles that’s on the list I was a little surprised by this because I expected more of Tesla’s vehicles to qualify you’ll see model 3 Performance the interesting thing is only the performance version of the model 3 is
Currently on the list not the long range or the standard range just model 3 Performance so uh that’s very interesting but it does qualify for the full $7,500 federal tax credit now you do have that MSRP limit of 55,000 so you’re not going to be able to load up a
Model 3 Performance with a lot of options and still get this tax credit but you can get one for this and it actually I think it brings the price down lower than the model 3 with the dual motor long range so uh that’s probably the buy right there right now
Get the performance and you’re actually going to get it for less than what the long range model 3 is okay next up the model X long range again $7,500 but you have to keep that under the $80,000 limit you can do that but it’s difficult
You can’t get a lot of options model y all-wheel drive full $7500 $80,000 limit you can load that up you don’t have to worry about hitting that $80,000 limit model wide performance Again full $7500 $80,000 cap the model y rear wheel drive full $7,500 an $80,000 limit now you’ll
Notice it’s just 2024 listed for the model y rear wheel drive okay well that’s it for the fully electric vehicles that qualify for the federal tax credit so far at least in 2024 hopefully that gets updated uh only Chevrolet Ford rivan and Tesla have any fully electric vehicles that qualify for
The tax credit now we’re going to take a look at the plug-in hybrids cuz there are a few on the list that do qualify first up we’ll look at the Chrysler Pacifica phev and that’s from 2022 through 2024 the full $7,500 federal tax credit with an
$8,000 limit next we’ll take a look at Ford the Escape plug-in hybrid 2022 through 2024 that only qualifies for half of the federal tax credit I’m not sure which half it didn’t meet but it didn’t meet one of them probably the critical mineral component but I don’t
Know for sure um and uh you can get 3750 off the Escape plug-in hybrid Okay Jeep Vehicles the Jeep Grand Cherokee phev 4xe the 20122 through 2024 uh 3750 again half the federal tax credit with a limit of $80,000 and then we have the rangler pev 4xe 2022 through 2024 again 37 50
You don’t get the full federal tax credit but you do get 3750 off okay and finally the Lincoln Corsair Grand Touring 2022 through 2024 3750 with the limit of $80,000 the tax credit is not refundable you’re not going to get money back it’s just a credit on the taxes that you
Should have paid it’s also not transferable for future years it’s only valid for the year the vehicle is purchased and the sale only qualifies if you buy the vehicle new also the dealers are required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the
Benefit in addition the vehicle’s manufactured suggested retail price can exceed $80,000 for Vans sport utility vehicles and pickup trucks $55,000 for all other vehicles okay well I’ve been talking lot about how the vehicles qualify for the tax credit the individual also has to qualify so let’s talk a little bit about
That now the tax credit is available for individuals as well as businesses and to qualify you must buy or lease the vehicle for your own use and not purchase it just so you could resell it you have to use it primarily in the US in addition your modified adjusted gross
Income may not exceed $300,000 for married couples filing jointly $225,000 for heads of household and $15,000 for all other filers now as I mentioned in previous years you paid the full price for the vehicle and then you claimed it on your taxes and if you qualified you got the money taken off
Your taxes it’s different now it’s a they call it cash on the hood because it happens at the time of purchase at the dealership the dealer is automatically going to deduct the tax credit from the purchase price what happens is then they file papers with the IRS and within 72
Hours the IRS pays the dealer for the tax credit whatever was claimed 7500 or 3750 the dealer is made whole now the problem can happen where you originally thought you were going to qualify for the tax credit but then at the end of the year you don’t so what happens in
That case you have to pay the IRS back so the only way that’s going to happen is if you don’t think that you’re going to make the uh limit like uh I mentioned earlier the $300,000 limit for uh married filing jointly let’s say you’re projecting your income this year to be
At $270,000 and then you or your significant other makes a lot more money than you expected now you exceed the $300,000 limit you’ll owe the tax credit that you got on your car to the IRS now luckily it doesn’t happen the other way let’s say you don’t earn enough money to
Fully take advantage of the tax credit this is how it was in previous years if you didn’t ear pay enough tax or owe enough tax on the income you earned you didn’t get the full tax credit luckily that’s changed this year and now there’s no minimum income so you don’t have to
Worry about let’s say you lose your job halfway through the year and you’ve gotten the $7,500 federal tax credit and now you’re not earning enough income to pay enough tax to have a $7,500 tax liability you would have to pay the IRS back I mean talk about a double whammy
You lose your job and now you got to pay them for a tax credit that’s not the case anymore they dropped that this year so now you don’t have to worry about the lower end but you do have to worry about the upper end which I guess it’s not a
Bad thing if you earn more money than you expected but you’re going to have to fill out a questionnaire uh at the dealership basically saying that you don’t think you’re going to earn more and I think you also have to prove the last year or two that you didn’t earn
More than what the cap was in order for you to qualify for the uh tax credit but if you then this year all of a sudden make more money get out that checkbook at the end of the year because you’re going to have to pay the IRS back all
Right well that’s pretty much all I have here today for the changes to the electric vehicle federal tax credit for 2024 there’s a lot of moving Parts here and I wouldn’t be surprised if you still have a lot of questions you can leave them in the comment section I’ll do my
Best to answer them I’m not really a complete subject matter expert on this but I’ll do some research see if I can’t get you the answers that you seek and as I mentioned earlier I’m going to be updating this video so if it doesn’t seem like all of the information here
Was completely current just search my uh YouTube channel state of charge for tax credit there might be a version of this video that was published later and in that case it might have some more up-to-date information I certainly expect more vehicles to be added to this
List but I still can’t fathom why the manufacturers weren’t able to have all that information prepared and submitted to the IRS by December 18th I suppose there’s moving parts that I don’t know about but you know I know if if I ran an oil manufacturing company that sold EVS
I would do my best to get all the information to the IRS so starting on day one in 2024 all the vehicles that we’re going to qualify were on that list but as I said there’s probably things going on in the background that I really don’t know about listen if this is your
First time here at state of charge don’t forget hit that subscribe button and ring the notification Bell so you don’t miss any upcoming electric vehicle news and reviews and as always thanks for Watching
In this video, I discuss the changes to the federal electric vehicle tax credit in 2024 and list every vehicle that qualifies for the incentive.
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Chapters:
00:00 Intro
00:37 Why did more than 50% of all EVs lose the tax credits?
02:08 What are the changes to the new EV tax credit?
05:51 The Chevrolet EVs that qualify for tax credits
07:42 The Ford EVs that qualify for tax credits
08:58 The Rivian EVs that qualify for tax credits
09:59 The Tesla vehicles that qualify for tax credits
11:36 All of the plug-in hybrids that qualify for tax credits
12:46 How the new tax credit rules work
17:26 Outro
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