The electric vehicle (EV) revolution is here. With more models offering improved range and features, EV adoption in the U.S. soared nearly 65% in 2022. To further accelerate growth, federal policy updated EV tax credits in the Inflation Reduction Act. The new qualifications take effect this year, reshuffling the playing field.
So which American automakers stand to benefit the most from the policy changes? Let‘s analyze the EV models that still qualify for the full $7,500 credit and what that means for these brands.
Overview of the U.S. Electric Vehicle Market
Industry-wide EV sales increased from 3% market share in 2020 to nearly 9% by the end of 2022. Improving economics and more model availability are driving record orders. In fact, nearly 200 new EV models are expected to launch between 2022 and 2025.
With growing consumer appetite, the U.S. government wants to spur domestic manufacturing. The new tax credit rules aim to incentivize automakers to assemble EVs and source batteries locally. These strategies promote high-quality jobs and supply chain resiliency.
New Qualifications for the $7,500 Tax Credit
The updated policy contains two key requirements for the maximum incentive:
- Final assembly of the EV must occur in North America
- Batteries must source over 40% of critical minerals from the U.S. or countries with free trade deals
These rules went into effect on April 18th, 2023. Other existing requirements remain such as sticker price caps and income limits.
Let‘s see which automakers already meet the stringent new standards.
Cadillac Lyriq – Luxury Meets Electric Performance
The sole EV offering from luxury icon Cadillac turns heads with its sleek SUV styling and show-stopper interior. The Lyriq‘s 33-inch curved dashboard display spills elegantly from steering wheel to passenger door in a single piece of glass. Combine that with the responsive 340 horsepower rear-wheel drive system and Cadillac makes a compelling entrance into the luxury EV space.
Pricing & Incentives
| Trim | Range | 0-60 mph | Price | Tax Credit |
|---|---|---|---|---|
| RWD | 312 mi | 5.9 s | $58,590 | $7,500 |
| AWD | 307 mi | 4.6 s | $62,990 | $7,500 |
AWD model shown above
Even when fully equipped, the Lyriq AWD lands under the $80k MSRP limit for maximum incentives. With most buyers eligible for state and utility rebates too, the value equation looks promising for this sleek new entry.
Chevy Bolts Ahead with Varied EV Lineup
The brand that brought electric vehicles mainstream over a decade ago continues to expand options across vehicle segments. Between the affordability of the Bolt EV and EUV to the upcoming performance variants of the Blazer, Silverado and Equinox, Chevy cements itself as the EV brand for the masses.
Chevy Bolt EV/EUV
These hatchback siblings boast cool tech features at accessible pricing. The EUV model offers enhanced cargo flexibility and styling over the standard Bolt EV, but both deliver 259+ miles of range and DC fast charging capabilities. Their sub-$30k starting prices also sneak under the $55k car incentive limit.
Performance Models Incoming
Later this year, Chevy shifts to higher power offerings with the Blazer EV SUV and Silverado EV and Equinox EV trucks. Early estimates suggest 300+ mile ranges and output over 400 horsepower. Retaining American manufacturing for these new models ensures full tax credit eligibility through 2032.
Chrysler Pacifica PHEV Minivan Maximizes Flexibility
The innovative Pacifica plug-in hybrid gives families 32 miles of all-electric driving before seamlessly switching to hybrid operation when needed. This allows daily commuting and errands on battery alone while maintaining the freedom for road trips. Throw in Stow ‘n Go fold-flat seating and you’ve got maximum flexibility and now tax credits too.
Chrysler Pacifica PHEV Incentives
| Trim | EV Range | Total Range | 0-60 mph | Price | Tax Credit |
|---|---|---|---|---|---|
| Limited | 32 mi | 500 mi | 7.3 s | $50,795 | $7,500 |
| Pinnacle | 30 mi | 500 mi | 7.3 s | $58,290 | $7,500 |
As the first ever hybrid minivan, the Pacifica makes no compromises on style or performance. And with AM/FM radio availability, even grandma can feel at home in this forward-looking family vehicle.
Ford F-150 Lightning Pickup Powerhouse
The best selling pickup truck of all time went electric in 2022. And with over 200,000 reservations to date, Ford can‘t seem to keep up with demand. Two out of three customers are new to Ford, suggesting the Lightning‘s appeal stretches beyond brand loyalty. Its lineup of worksite features plus performance packages offering up to 580 horsepower make this muscular truck a winner.
Light Duty or Max Capability
| Trim | Range | Towing | 0-60 mph | Price | Tax Credit |
|---|---|---|---|---|---|
| Pro | 230 mi | 10k lb | 6.5 s | $55,974 | $7,500 |
| Platinum | 300 mi | 10k lb | 4.3 s | $92,669 | – |
With power and tech to spare, the Lightning brings EVs firmly into the pickup mainstream. Ford expects EV models to account for half of sales by 2030. So far the F-150 Lightning is charging strongly towards that goal.
Lincoln Aviator Grand Touring for Refined EV Driving
The Aviator Grand Touring plug-in hybrid provides a luxurious option for eco-conscious families. Lincoln craftsmanship conveys openness and spaciousness within while the Grand Touring powertrain supplies an impressive 494 horsepower when electric and gas systems combine forces. Sophisticated handling and Lincoln’s signature quietness maintain the brand‘s signature grace and elegance.
Luxe PHEV Package
| Trim | EV Range | Total Range | 0-60 mph | Price | Tax Credit |
|---|---|---|---|---|---|
| Grand Touring | 21 mi | 450 mi | 5.5 s | $73,825 | $7,500 |
From surround view camera to self-correcting body roll, innovative technology enhances rather than distracts from the refined Lincoln driving experience. Confidently go the distance with 21 miles of seamless electric driving followed by traditional hybrid efficiency.
Tesla Model Y & Model 3 Performance – EV Architects
As the undisputed leader in EVs, Tesla finds itself in an unusual position. For over a decade, Tesla presold every vehicle they could produce. Now with new domestic manufacturing rules, only two models meet the full tax credit qualifications. Yet remarkably, Tesla still occupies the #1 and #2 best selling EV spots with its tech-packed Model Y crossover and Model 3 sedan flagships.
Model Y Versatility
| Trim | Range | 0-60 mph | Price | Incentive |
|---|---|---|---|---|
| Long Range | 330 mi | 4.8 s | $65,990 | $7,500 |
| Performance | 303 mi | 3.5 s | $69,990 | $7,500 |
Seating 5 adults comfortably, the Tesla Model Y offers expansive cargo room thanks to its skateboard battery layout that frees up cabin space. Standard autopilot features ease driving while large screens provide entertainment and controls.
Model 3 Performance
For those desiring raw speed, the Model 3 Performance slots neatly under the $55k car limit to allow maximum savings. With a 155 mph top speed and 0-60 acceleration under 3.1 seconds, the Model 3 Performance hangs confidently with elite sports cars. Yet intuitive controls and a modern vegan leather interior make this executive‘s express commuter friendly for everyday use.
| Trim | Range | 0-60 mph | Price | Incentive |
|---|---|---|---|---|
| Performance | 315 mi | 3.1 s | $54,490 | $7,500 |
Used Electric Cars Now Get Federal Credits Too!
Buyers have another affordable avenue into EV ownership through used models. Electric cars up to 2 years old with less than 25,000 miles are now eligible for federal tax credits. Savings of up to $4,000 make certified pre-owned vehicles even more appealing.
The Path Forward – An Electric Recovery
After years of setting ambitious goals, the U.S. government gets serious about supercharging EV adoption through buying incentives. Early signs suggest the policy is having its intended effects.
Automakers Ford and GM announced manufacturing investment plans to onshore more production. Tesla opened up its vast charging network to other brands beginning in 2024. Stellantis chose Indiana for joint battery plant venture with Samsung powered by renewable energy.
As barriers fall, the electric future looks bright for American brands and buyers alike!
