The $7,500 federal tax credit has been one of the most impactful incentives boosting electric vehicle adoption in the U.S. However, recent changes to eligibility requirements have dramatically reduced the number of EVs that still qualify for the full credit.
As of April 2023, there are only 12 EV models that meet the updated criteria to receive the maximum $7,500 tax credit. Read on for the full details on which electric cars, SUVs and trucks make the cut, plus what to expect in terms of range, pricing and performance.
Why Are There Fewer Cars On The List Than Before?
In August 2022, the Inflation Reduction Act introduced new requirements for EVs to qualify for the tax credit. Most notably, final assembly of the vehicles now needs to take place in North America. This rule change immediately disqualified many popular imported models.
Further battery component and critical mineral sourcing regulations went into effect in April 2023. Now, a certain percentage of battery parts need to be manufactured in the U.S. or a free trade partner country. Automakers have scrambled to overhaul supply chains and manufacturing to meet the new standards.
The good news is that as more models meet the updated criteria, they will be added back to the qualification list. So the number of EVs eligible for $7,500 credits is likely to grow substantially in coming years.
Here Are The 12 EVs That Currently Qualify For The Full $7,500 Tax Credit:
1. Cadillac Lyriq
- Luxury midsize SUV
- 312 miles of range
- 340 HP / 325 lb-ft torque
- 0-60 mph in under 4 seconds
- Starting MSRP: $63,990
The sleek, high-tech Lyriq offers plentiful range and exhilarating performance with the comforts and styling of a premium Cadillac. It’s manufactured in Spring Hill, Tennessee.
2. Chevrolet Bolt EUV
- Subcompact crossover SUV
- 247 miles of range
- 200 HP / 266 lb-ft torque
- 0-60 mph in 6.5 seconds
- Starting MSRP: $28,195
With ample passenger and cargo space, the Bolt EUV retains the Bolt EV’s excellent range and value. Plus, it offers advanced tech features like Super Cruise hands-free driving.
3. Chevrolet Bolt EV
- Subcompact hatchback
- 259 miles of range
- 200 HP / 266 lb-ft torque
- 0-60 mph in 6.5 seconds
- Starting MSRP: $26,595
The Bolt EV delivers versatile practicality and robust EV range at an affordable price point. Performance and tech are also impressive for the compact segment.
4. Ford F-150 Lightning
- Full-size electric pickup truck
- 230 miles of range
- 563 HP / 775 lb-ft torque
- 0-60 mph in 4.5 seconds
- Starting MSRP: $41,769
The hotly anticipated F-150 Lightning brings blistering acceleration and abundant torque to Ford’s perennially best-selling pickup line. It’s manufactured in Dearborn, Michigan.
5. Ford Mustang Mach-E
- Midsize crossover SUV
- 247 miles of range (RWD std. range)
- 266 HP / 317 lb-ft torque (RWD std. range)
- 0-60 in 6.1 seconds (RWD std. range)
- Starting MSRP: $44,997
The Mach-E brings sporty driving dynamics and upscale styling to Ford’s growing EV lineup. And Ford offers a range of trim levels to suit different budgets.
6. Rivian R1T
- Midsize electric pickup truck
- 314 miles of range
- 750 HP / 829 lb-ft torque
- 0-60 mph in 3 seconds
- Starting MSRP: $73,000
The hot rod R1T pickup brings supercar acceleration to an off-road ready utility package, along with impressive tech features.
7. Rivian R1S
- Midsize electric SUV
- 316 miles of range
- 750 HP / 829 lb-ft torque
- 0-60 mph in 3 seconds
- Starting MSRP: $78,000
Rivian’s electric SUV provides comparable performance specs to the R1T pickup in a seven-passenger family-friendly package.
8. Tesla Model 3
- Compact luxury sedan
- 358 miles of range (Long Range AWD)
- Up to 450 HP / 471 lb-ft torque
- 0-60 as quick as 3.1 seconds
- Starting MSRP: $47,490
The Model 3 needs little introduction after taking the EV world by storm. Tesla continues to offer class-leading range, technology, and performance at relatively affordable pricing.
9. Tesla Model Y
- Midsize luxury crossover
- 330 miles of range (Long Range AWD)
- Up to 450 HP / 471 lb-ft torque
- 0-60 mph in as little as 3.5 seconds
- Starting MSRP: $65,990
The Model Y takes much of what has made the Model 3 so popular and packages it in a more functional crossover format.
Other Qualifying Vehicles
The following 6 models qualify for a $3,750 federal tax credit since they meet either the battery minerals/components requirements or final assembly location rules:
- Ford Escape Plug-in Hybrid
- Jeep Grand Cherokee 4xe
- Jeep Wrangler 4xe
- Lincoln Corsair Grand Touring
- Ford E-Transit
- Lincoln Aviator Grand Touring
Vehicles No Longer Eligible
Many popular EV models can no longer be claimed for any federal tax credit amount due to changes in qualification criteria. These include:
- Audi e-tron
- BMW i3
- Hyundai Ioniq
- Kia EV6
- Nissan Leaf
- Volkswagen ID.4
Among the previously eligible SUVs and trucks, the Rivians R1T and R1S notably retain their full $7,500 eligibility.
Qualification Criteria
To qualify for the full $7,500 federal tax credit now, an electric vehicle must meet the following criteria:
- Final assembly must occur in North America
- Battery minerals and components eligibility requirements:
- 40% of battery components manufactured or assembled in North America
- Certain percentages of battery minerals sourced from U.S. free trade partners or recycled in North America
- Manufacturer has not yet hit 200,000 units sold cap
Income eligibility and price caps on vehicles also still apply. See more details in our full guide on qualifying for the federal EV tax credit.
Outlook for More Qualifying Vehicles
The regulatory changes have pushed automakers to overhaul supply chains and manufacturing operations. Over 2023, we should see improved battery mineral sourcing and localization of production. This is likely to result in more EV options from major players like Hyundai, Kia and Toyota meeting eligibility rules.
The new qualifying criteria also incentivize manufacturers to build future EV models in North America. So as more next-gen electric vehicles launch built with these standards in mind, the list of vehicles eligible for $7,500 credits should continue expanding.
Conclusion
While choice has narrowed from the hundreds of models previously qualifying, there are still excellent electric cars, trucks and SUVs eligible for the $7,500 federal tax incentive.
For drivers looking to make the switch to an EV in 2023, models like the Chevy Bolt EUV and Ford Mustang Mach-E represent affordable options to benefit from credits. At the higher end, the Rivians, Cadillac Lyriq and Tesla lineups boast ultra-quick acceleration while retaining eligibility.
Considering range needs, budget and performance preferences can help identify the best choice among qualifying EVs to maximize savings. Review the current list here as a starting point, and check back for updates as more environmentally-friendly models undoubtedly earn eligibility through 2023!
