Are you considering going electric for your next vehicle purchase? Between soaring gas prices and growing climate impact awareness, more Americans than ever are thinking about plug-in hybrid or fully electric cars. But the upfront sticker shock of EVs compared to gas-powered alternatives has held many back.
The good news is between revamped federal tax credits and additional state/local incentives, your potential savings in 2023 for choosing an electrified ride can add up to $10,000 or even more. This guide will analyze the most compelling plug-in hybrid (PHEV) and battery electric (BEV) models now on the market while showing you just how much you can slash off your purchase or lease price.
New Rules Have Supercharged EV Tax Credits for 2023
The recent passing of the Inflation Reduction Act has completely overhauled the EV tax credit landscape in the US. Credits have been extended out to 2032, raised to up to $7,500, and re-formulated to encourage automakers to build electric vehicles in North America. EVs must have final assembly in either the US, Canada, or Mexico to qualify for any federal credits now.
In addition, new caps have been placed on manufacturer sales volumes before their credits begin phase-out. Once an auto brand sells over 200,000 total EVs, their tax credits start falling quarter by quarter before disappearing entirely the following year. So 2023 is an critical window to purchase certain popular models before they hit the threshold.
Here is a breakdown of the new federal electric vehicle tax credit details:
| Federal EV Tax Credit | Details |
|---|---|
| Maximum Amount | $7,500 |
| Eligible Vehicle Classes | Passenger vehicles, trucks, SUVs |
| Qualifying Types | Plug-in hybrids, full battery EVs |
| Assembly Requirements | North America |
| Purchase Date Range | Vehicles acquired after August 16, 2022 |
| Income Cap | $150,000 individual filers, $300,000 joint |
| MSRP Limit | $55,000 sedans, $80,000 trucks/SUVs |
| Phase-Out Threshold | 200,000 units sold per automaker |
In addition to more generous federal incentives, many state and local governments offer thousands more in EV tax credits and rebates. Make sure to research what‘s offered for going electric in your region.
The 6 Top Plug-In Hybrids and EVs Qualifying Now
The variety of electrified models available to US buyers keeps expanding rapidly. Each takes a unique approach making tradeoffs across dimensions like range, passenger/cargo capacity, performance, tech features, and price.
After testing and reviewing all the latest offerings, these 6 plug-in hybrids and EVs stand out currently as the most compelling options qualifying for federal tax credits up to $7,500. Let‘s analyze what makes each vehicle special and how much ownership costs can be reduced in 2023 through incentives.
1. Nissan Leaf – $34,995 (After savings)
The Nissan Leaf arguably launched the mainstream affordable EV segment back in 2010 and continues evolving while staying true to its value positioning. The 2023 model boosts range and charging speed while keeping sticker prices reasonable.
Base MSRP: $28,495
Electric Range: 149 miles (40 kWh battery)
Efficiency: 114 MPGe combined
Savings: up to $7,500 federal tax credit, $2,000 California rebate
Total Price After Savings: $34,995
Pros
- Peppy acceleration and handling
- Improved DC fast charging capacity
- Proven long-term reliability
- Highest safety ratings
Cons
- Tight rear seat space
- Basic interior treatments
- Lowest range in class
Best for city commuters and first-time EV buyers on a budget.
2. Jeep Grand Cherokee 4xe – $56,015
The first electrified Jeep, the Grand Cherokee 4xe blends the brand‘s renowned off-road grit with part-time electric motoring. The plug-in hybrid configuration delivers reasonable fuel efficiency alongside robust gasoline V6 performance.
Base MSRP: $63,515
Electric Range: 25 miles
Efficiency: 50 MPGe combined
Savings: $7,500 federal tax credit
Total Price After Savings: $56,015
Pros
- Real off-roading credentials
- Strong gas engine power when needed
- Luxury-level interior treatments
Cons
- Poor EV-only driving range
- Much pricier than rivals
Best for outdoorsy families needing space, 4×4 traction, and flexibility in one vehicle.
Rivian R1S – $70,500 (Explore trim)
The electric startup Rivian has made waves in the EV truck and SUV segment thanks to its adventure-ready designs wrapped in forward-thinking technology and luxury appointments. While not cheap, tax credits make these vehicles more accessible.
Base MSRP: $78,000
Electric Range: 316 miles
Efficiency: TBD
Savings: $7,500 federal tax credit
Total Price After Savings: $70,500 (Explore trim)
Pros
- Leading edge battery tech
- Off-road tuned suspension and clearance
- Latest gadgets like Alexa and remote camping features
Cons
- Very expensive
Best for early adopters wanting 300+ miles of range and cutting-edge capabilities.
Ford E-Transit Cargo Van – $42,500
Businesses wanting to add an electric vehicle to their fleet while taking advantage of tax incentives should consider the Ford E-Transit. America‘s best-selling cargo van goes battery-powered with ample range and payload.
Base MSRP: $50,000
Electric Range: 126 miles
Efficiency: 64 MPGe combined
Savings: $7,500 tax credit
Total Price After Savings: $42,500
Pros
- Strong payload capacity up to 2,610 pounds
- DC fast charging for flexible range
- Smoother, quicker electric motor response
Cons
- No passenger or AWD versions
- Ford Pro charging network still limited
Best for services and contractors needing a versatile e-van in the fleet.
Chevrolet Bolt EV – $19,095
The second generation Chevy Bolt hatchback enters 2023 with revamped styling and upgraded interior alongside enhanced EV driving range and recharging capability.
Base MSRP: $26,595
Electric Range: 259 miles
Efficiency: 120 MPGe combined
Savings: $7,500 federal tax credit
Total Price After Savings: $19,095
Pros
- Engaging handling with low center of gravity
- Vastly improved DC fast charging rate
- Roomy seating and cargo for size
Cons
- Cabin noise is still pronounced
- Exterior styling remains polarizing
Best low-cost EV delivering 250+ miles daily driving range.
Ford F-150 Lightning – $48,615 (Base Model)
The first full-electric version of America‘s best-selling vehicle for 40+ years brings a future-forward driving experience to the pickup segment. Two battery pack options deliver either 320 or 580 HP alongside 300+ miles of range.
Base MSRP: $56,515
Electric Range: 320 miles (extended range pack: 483 miles)
Efficiency: 70 MPGe combined
Savings: $7,900 ($7,500 federal + $400 California)
Total Price After Savings: $48,615 (Base model)
Pros
- Instantaneous EV torque & acceleration
- Innovative features like battery backup power
- Over 10,000 pounds max towing capacity
Cons
- Much pricier than gas-powered F-150
- Various quality problems reported early
Best for truck traditionalists needing tried-and-true capabilities now with lithium-ion power.
Choosing the Right EV or Plug-In Hybrid for You
With today‘s variety of electrified powertrains available alongside growing tax incentives and rebates, identifying the optimal vehicle comes down to aligning features and pricing to your specific needs. As you evaluate options, keep these steps in mind:
- Determine Primary Usage – Daily commute miles? Cargo/towing requirements? Off-road or adventure trips?
- Set Range & Recharging Needs – Single or multi-vehicle household? Home charging access?
- Compare Total Ownership Costs – Purchase price, tax savings, government/utility rebates, estimated fuel expenses
- Prioritize Must-Have Features – Cabin space? Performance? Latest tech gadgets and apps?
- Test Drive Top Contenders – Get behind wheel to evaluate real-world driving experience
As you narrow down your options, be sure to run them through the EPA‘s Fuel Economy guide to understand and compare efficiency, range, emissions, charging speed, dimensions, seating configurations, advanced driver assistance systems, and other key factors.
Online EV forums and communities are also excellent resources to learn from early adopters in unbiased environments. And don‘t hesitate to lobby local government agencies and federal representatives on the importance of sustaining consumer incentives for electric vehicle adoption. Widespread mainstream EV use promises tremendous economic, health, and environmental benefits to society as a whole over the coming decades.
