This is a re-post from Yale Climate Connections by Samantha Harrington
With the passage of historic clean energy laws in 2022, the next few years are shaping up to be electric in the United States. For drivers, federal money is available to cut off trips to the gas station and get hooked up to the grid. Electric cars benefit the climate because, unlike gasoline, electricity can be generated with clean, renewable systems like solar and wind, reducing carbon pollution and leading to healthier air.
Three provisions of the Inflation Reduction Act offer consumer tax credits for electric vehicles. The Clean Vehicle Credit applies to qualified new vehicles and is worth up to $7,500. The Used Clean Vehicle Credit is worth either $4,000 or 30% of the cost of the used vehicle, whichever is smaller. And the Commercial Clean Vehicle Credit helps businesses purchase qualified vehicles.
“Most of the EVs on the market today can handle the day-to-day needs that most people have for their around-the-town errands,” said Britt Carmon, a senior advocate for federal clean vehicles and fuels at the Natural Resources Defense Council, an environmental nonprofit. And provisions in the Bipartisan Infrastructure Law aim to build out a nationwide network of electric vehicle charging stations, which will make it easier for people to take long car trips in an EV.
To qualify for credits for a new clean energy vehicle, your adjusted gross income must be under $300,000 if your tax status is married filing jointly, under $225,000 for head-of-household status, or under $150,000 for single or married filing separately. For a used car, your adjusted gross income must be under $150,000 if your tax status is married filing jointly, or under $75,000 if your filing status is single or married filing separately.
To qualify for tax credits, vehicles must comply with manufacturing requirements, such as rules related to the geographic origin of minerals and batteries. Under the new law, these requirements will get stricter each year, but that’s not necessarily a reason to rush into buying a car. Carmon said that car manufacturers are already starting to move their supply chains into compliance so consumers shouldn’t worry too much about battery and manufacturing requirements getting stricter over time.
“As that continues to happen in the U.S. and happen in countries where we have free trade agreements, we’re still going to be able to meet the needs of the folks looking to get electric vehicles.”
With that, here’s a comprehensive list of the vehicles that qualify for the federal tax credit.* You can find more information about whether a vehicle qualifies by entering the make, model, and year at fueleconomy.gov.
*Last updated in May 2023
Chevrolet Bolt EV and EUV
Chevrolet Equinox EV
Volkswagen ID.4 Standard, S, Pro, Pro S, Pro Plus, AWD Pro, AWD Pro S, and AWD Pro Plus
Chevrolet Silverado
Tesla Model 3 Standard Range RWD
Ford Mustang Mach E, Standard
Chevrolet Blazer EV
Ford E-Transit
Chrysler Pacifica PHEV ($7,500)
Tesla Model Y AWD, Long-Range AWD, and Performance
Lincoln Corsair Grand Touring
Jeep Wrangler PHEV 4xe
Lincoln Aviator Grand Touring
Cadillac Lyriq
Ford F-150 Lightning, Standard & Extended Range
Jeep Grand Cherokee PHEV 4xe
Rivian R1T
Rivian R1S
Posted by Guest Author on Monday, 12 June, 2023
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