tax credits

The Biden administration said yesterday that about 20 models of electric vehicles would qualify for tax credits worth up to $7,500 through the end of this year. The Inflation Reduction Act, signed Tuesday, will immediately end credits for about 70% of the 72 models that were previously eligible, according to the Alliance for Automotive Innovation.

The law requires electric vehicles to be assembled in North America to qualify for tax credits, with additional provisions taking effect on January 1, 2023. Buyers with binding written contracts before the bill was signed still have access to the credits.

The Treasury Department said consumers should check their vehicle identification numbers to ensure their vehicle is still eligible, as some models are manufactured in North America and overseas.   

According to the IRS, “If a customer has made a non-refundable deposit or down payment of 5% of the total contract price, it is an indication of a binding contract.” Automakers had been urging buyers to make portions of deposits non-refundable before Tuesday’s signing.  

Portions of the law which take effect January 1, will place new restrictions on battery and mineral sourcing and price and income caps. These regulations are expected to make nearly all EVs ineligible for tax credits. The automaker group has stated they will work with the administration so the EV tax credit is “as available and beneficial to consumers as possible.”  

The law will restore General Motors and Tesla eligibility, which both lost credits after hitting the 200,000-vehicle per manufacturer cap. It remains unclear how many models will remain eligible in 2023 under the new sourcing and price caps.  

Model Year Vehicle Note
2022 Audi Q5 PHEV model only
2022 BMW 3-series Plug-in 330e
2022 BMW X5 xDrive45e
2022 Chevrolet Bolt EUV Manufacturer sales cap met
2022 Chevrolet Bolt EV Manufacturer sales cap met
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
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 Nissan Leaf
2022 Rivian EDV Fleet-only
2022 Rivian R1S Reserve here
2022 Rivian R1T Reserve here
2022 Tesla Model 3 Manufacturer sales cap met
2022 Tesla Model S Manufacturer sales cap met
2022 Tesla Model X Manufacturer sales cap met
2022 Tesla Model Y Manufacturer sales cap met
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 Mercedes EQS
2023 Nissan Leaf

dealersDid you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at

Be sure to follow us on Facebook, LinkedIn, and TikTok to stay up to date.

While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.