Confused about which cars are eligible for the federal EV tax credit now that the Inflation Reduction Act has been signed into law? Do not be. According to the US Department of Energy’s Alternative Fuels Data Center, this is the definitive list. Note that the new law only applies to cars and wagons with a sticker price of $55,000 or less and SUVs with a sticker price of $80,000 or less.
The final determining factor in determining what is and is not eligible for the new tax credit is the VIN number. For more information, use the VIN Decoder tool available on the NHTSA website, which will definitively identify where a particular vehicle was built.
|2022||BMW 3 Series PHEV|
|2022||Chevrolet Bolt EUV||The manufacturer’s sales limit has been met|
|2022||Chevrolet Bolt EV||The manufacturer’s sales limit has been met|
|2022||Chrysler Pacifica PHEV|
|2022||Ford Escape PHEV|
|2022||Ford F-150 Lightning|
|2022||Ford Mustang Mach-E|
|2022||Van Ford Transit|
|2022||GMC Hummer Pickup||The manufacturer’s sales limit has been met|
|2022||GMC Hummer SUV||The manufacturer’s sales limit has been met|
|2022||Jeep Grand Cherokee PHEV|
|2022||Jeep Wrangler PHEV|
|2022||Lincoln Aviator PHEV|
|2022||Lincoln Corsair Plug|
|2022||Tesla Model 3||The manufacturer’s sales limit has been met|
|2022||Tesla Model S||The manufacturer’s sales limit has been met|
|2022||Tesla Model X||The manufacturer’s sales limit has been met|
|2022||Tesla Model Y||The manufacturer’s sales limit has been met|
|2023||BMW 3 Series PHEV|
|2023||EV shop||The manufacturer’s sales limit has been met|
|2023||Cadillac Lyriq||The manufacturer’s sales limit has been met|
The EV tax credit and SUVs
Obviously, with a $25,000 price difference between vehicles eligible for the car and wagon credit and those available for the SUV credit, any manufacturer with an ounce of common sense will want their vehicles classified as SUVs. What is an SUV? This is an excellent question. An SUV is what the government says it is, and that can involve the EPA, NHTSA, DOT, the IRS, and probably six or seven agencies you’ve never heard of. An Internet search failed to identify a single source of this information. Maybe your accountant can help you with this.
Suffice it to say, before you blow your hard-earned cash on a car you think is an SUV, make sure it qualifies for the EV tax credit to avoid tears at tax time . It shouldn’t be that hard, but it is. If the vehicle you want to buy isn’t on the above list (which is only valid until the new battery material sourcing requirements start on 1 January 2023), it doesn’t qualify.
Another unanswered question is whether the operating number is the price on the Mulroney sticker stuck to the rear window of that shiny new wagon or the price on the sales contract, which could include any number of surcharges added by a dealer for market adjustments and other price gouging tactics. We assume the window sticker will control, but chances are many dealers will do their best to funnel some of that government money into their pockets instead of yours. Caveat emptor!
This legislation is new and there will be many changes, modifications, tweaks and special exceptions in the coming days, weeks and months. It may be helpful to keep this Alternative Fuels Center URL handy to keep up with the latest information.
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