Seven electric cars worth buying that qualify for a $7,500 tax credit in 2024

Seven electric cars worth buying that qualify for a $7,500 tax credit in 2024

On the one hand, having electric vehicle (EV) tax credits of up to $7,500 for new cars and up to $4,000 for used cars applied at the point of sale is a huge incentive for drivers who have not yet fully embraced purchasing an electric vehicle. On the other hand, it is becoming more difficult for consumers to find a car that qualifies for credits.

As of January 1, the list of electric vehicles eligible for the full $7,500 or partial $3,750 tax credit has been reduced. While American manufacturers are striving to produce vehicles that do not rely on materials sourced from China and other foreign entities of concern, many companies still need to be able to do so, according to Business Insider. Meanwhile, the latest Treasury guidance has tightened restrictions regarding tax credits for electric vehicles.

As the government continues to change the rules for vehicle eligibility targets, this has resulted in several EVs needing help to receive a full or partial tax credit. As noted by Inside Climate News, 43 vehicles qualified last year. For 2024, there are much fewer.

Which electric vehicles qualify for a federal tax credit?

Only seven vehicles now qualify for the full $7,500 federal tax credit, including the Chevy Bolt economy car and some versions of the popular Tesla Model 3. With this credit, buyers get bargain models that are still expensive, but many of the industry leaders' electric vehicles still need to qualify.

Chevrolet Bolt: 2022 and 2023 models; MSRP $55,000 or less.

Chevrolet Bolt EUV: 2022 and 2023 models; MSRP $55,000 or less.

Chrysler Pacifica Hybrid PHEV: 2022 to 2024; MSRP $80,000 or less.

Ford F-150 Lightning: 2022 to 2024 models; MSRP $80,000 or less.

Tesla Model 3: 2023 and 2024 models; MSRP $55,000 or less.

Tesla Model MSRP $80,000 or less.

Tesla Model Y: All-wheel drive (2023 and 2024 models; MSRP $80,000 or less); Performance (model years 2023 and 2024; MSRP $80,000 or less); and rear-wheel drive (2024 model year only; MSRP $80,000 or less).

Additionally, the following six electric vehicles are eligible for a partial tax credit of $3,750 if placed in service between January 1, 2024 and December 31, 2024:

Ford Escape Plug-In Hybrid: 2022 to 2024 models; MSRP $80,000 or less.

Jeep Grand Cherokee 4xe: 2022 to 2024 models; MSRP $80,000 or less.

Jeep Wrangler 4xe: 2022 to 2024 models; MSRP $80,000 or less.

Lincoln Corsair Grand Touring: 2022 to 2024 models; MSRP $80,000 or less.

Rivian R1S: 2022 to 2024 models; MSRP $80,000 or less.

Rivian R1T: 2022 to 2024 models; MSRP $80,000 or less.

Which electric vehicles no longer qualify for the tax credit?

According to Consumer Reports, the affordable rear-drive Tesla Model 3 and long-range models will no longer qualify for the EV tax credit.

The Ford Mustang Mach-E and Lincoln Aviator Grand Touring PHEV are also victims of the tax credit. The Cadillac Lyriq and Chevy Blazer EV will temporarily lose eligibility but hopefully regain it sometime in 2024 — along with the Chevrolet Equinox, Silverado EV, and GMC Sierra EV.

The Nissan Leaf is still determining its eligibility, and according to Consumer Reports, Volkswagen is "optimistic" that the 2023 and 2024 ID.4 models will be eligible for the tax credit under the new rules.