US approves IRA but which cars get EV tax credits?
The US government’s $433 billion Inflation Reduction Act (IRA), which is highly related to climate change and energy transition, has been signed into law and below are the electric vehicle (EV) models qualifying for a $7,500 phase in of tax credits in the wake of the signing, according to the US Department of Energy.
Among the vehicle models getting tax credits are those with final assembly in the US and those that meet the battery material and critical mineral sourcing guidelines to be issued by the IRS by the end of 2022. Note that manufacturers currently over the 200,000 unit cap on the previous credit, will have to wait until January 1, 2023 when the cap is lifted.
Cars with an MSRP above $55,000 and trucks above $80,000 are not eligible as well as buyers earning more than $150,000. A $4,000 used vehicle credit starts in 2023, as does a commercial vehicle credit.
Models eligible for tax credit, source: US Department of Energy (note: As manufactures periodically change production plans and trim levels, this list could change over time.)
|2022||Audi Q5||PHEV model only|
|2022||BMW 3-series Plug-in||330e|
|2022||Chevrolet Bolt EUV||Manufacturer sales cap met (No. 3 best selling in the US, 2021)|
|2022||Chevrolet Bolt EV||Manufacturer sales cap met (No. 3 best selling in the US, 2021)|
|2022||Chrysler Pacifica PHEV||Pacifica Hybrid (PHEV) only|
|2022||Ford Escape PHEV||PHEV model only|
|2022||Ford F Series||F-150 Lightning only|
|2022||Ford Mustang MACH E||No 4 best selling in the US, 2021|
|2022||Ford Transit Van||E-Transit only|
|2022||GMC Hummer Pickup||Manufacturer sales cap met|
|2022||GMC Hummer SUV||Manufacturer sales cap met|
|2022||Jeep Grand Cherokee PHEV||PHEV model only|
|2022||Jeep Wrangler PHEV||4xe (PHEV) only|
|2022||Lincoln Aviator PHEV||Plug-In Hybrid model only|
|2022||Lincoln Corsair Plug-in||Plug-In Hybrid model only|
|2022||Lucid Air||Reserve here|
|2022||Rivian R1S||Reserve here|
|2022||Rivian R1T||Reserve here|
|2022||Tesla Model 3||Manufacturer sales cap met (No. 2 best-selling EV in the US, 2021)|
|2022||Tesla Model S||Manufacturer sales cap met|
|2022||Tesla Model X||Manufacturer sales cap met|
|2022||Tesla Model Y||Manufacturer sales cap met (No. 1 best selling EV in the US, 2021)|
|2022||Volvo S60||T8 Recharge (PHEV) only|
|2023||BMW 3-series Plug-In||330e|
|2023||Bolt EV||Manufacturer sales cap met|
|2023||Cadillac Lyriq||Manufacturer sales cap met|
|2023||Nissan Leaf||No. 6 best selling in the US, 2021|
As you can see, among the competitive EV models in the US which are not on the list include those from Hyndai and Volkswagen. However, the scenario could change in the coming months and years.
The U.S. Department of Transportation's NHTSA provides a VIN decoder that can be used to look up the vehicle's assembly location using these steps:
- Enter the Vehicle Identification Number in the VIN decoder.
- Click the "Decode VIN" button.
- Look for the country name in the "Plant Information" field at the bottom of the page.
Find additional directions for using the VIN decoder to identify a vehicle's build plant and country of manufacture.
For more tips on vehicle selection and to discuss best practice sharing with executive level fleet decision makers that have global (and regional) responsibilities, join the Global Fleet Managers Club (GFMC). See more here.
Top photo source: Shutterstock