Trump to End Electric Vehicle Tax Credit: Here Are 7 Electric Cars to Buy Before They Disappear

 

Trump to End Electric Vehicle Tax Credit: Here Are 7 Electric Cars to Buy Before They Disappear

President-elect Donald Trump’s return to the White House is expected to be largely negative for the electric vehicle industry, given his years of opposition and personal distaste for the technology. His team has already begun planning his anti-electric moves.

Trump’s transition team reportedly plans to eliminate the $7,500 tax credit for purchasing electric vehicles as part of a broader tax overhaul that will likely hurt sales. The credits are part of President Joe Biden’s Inflation Reduction Act (IRA), which Trump has said he wants to repeal, and are seen as a major driver of the shift to electric vehicles. The Treasury Department said electric vehicle buyers saved $600 million in three months thanks to the credits.

“The tax incentive is important,” Aaron Files, senior campaign director for the Electrification Alliance, told Quartz earlier this year. With most early adopters — the people most interested or invested in the technology — already owning an electric vehicle, automakers must reach consumers concerned about high vehicle costs.

More than a dozen electric vehicles are eligible for the full tax credit — and many others eligible for a smaller credit would become even more expensive if Trump rescinds the credit. Here are the EVs you can buy while the tax credit is active.

Tesla

Tesla’s (TSLA) Model Y SUV, Model X crossover SUV, and Model 3 compact are eligible for the full tax credit, while the company’s Cybertruck pickup and Model S luxury sedan are not.

According to the Department of Energy, whether each model qualifies for the full tax credit depends on the model year. For example, the 2024 Model Y with rear-wheel drive is eligible, as is the 2023-2025 Model Y Performance.

The only Model X model that qualifies for the tax credit is the 2023-2025 model year with all-wheel drive. As for the Model 3, the DOE notes that eligibility for the 2025 Model 3 Long Range with all-wheel drive may vary.

Considering its market dominance, Tesla is among the automakers expected to be less affected by the repeal plan for the Inflation Reduction Act. CEO Elon Musk has said that in the long run, “it’s probably going actually to help Tesla,” he wants to eliminate all tax credits for electric and gas-powered vehicles.

Chevrolet Blazer

A handful of Chevrolet (GM) vehicles, including the Blazer SUV, qualify for the full tax credit.

According to the DOE, the 2024 and 2025 Blazer models qualify for the credit. The Blazer was the first Chevrolet vehicle built on GM’s Ultium platform, which has since been renamed and had a rocky launch. However, reviews of the Blazer have become more positive over the past several months.

The 2022 and 2023 Chevrolet Bolt EV and Bolt EUV are also eligible, though GM discontinued those vehicles at the end of last year. However, the Bolt is set to return in 2025.

GM CEO Mark Reuss said last month that the second-generation Chevrolet Bolt will be the company’s most affordable model and lead a new family of vehicles when it launches in late 2025, according to Automotive News.

Cadillac Lyriq

The Cadillac Lyriq has emerged as a dominant force in the luxury EV market. From January through September, it sold more than 20,000 units in the United States, making it the best-selling midsize electric SUV in 2024.

A $7,500 tax credit applies to purchases of the 2024 and 2025 Lyriq, helping consumers interested in purchasing the unit, starting at $58,590.

In October, GM said the Lyriq would become the first electric vehicle in its portfolio to receive the V-Series performance badge. According to the company, the 2026 Lyriq-V SUV will launch in the United States and a handful of other markets early next year.

The Acura ZDX SUV is the only electric vehicle offered by Honda Motor Co.’s luxury car company, which resulted from a collaboration with GM.

The 2024 ZDX is built alongside the Cadillac Lyriq in Spring Hill, Tennessee, and shares the same platform, batteries, and electric motors, though their designs are significantly different. Both ZDX versions are eligible for a $7,500 tax credit, with the most expensive model — the ZDX Type S with the performance trim and wheels — costing $74,500.

Volkswagen ID.4

German auto giant Volkswagen (VW) has just one model eligible for the tax credit, the ID.4 SUV, which comes in various qualifying versions.

The Department of Energy lists the 2023 and 2024 ID.4 models as eligible and produced at Volkswagen’s Chattanooga, Tennessee, plant. According to Auto Express, both the ID.4 and ID.3 are set to undergo a major overhaul in 2026, including a return to the traditional two-box silhouette and other minimalist design features.

Ford F-150 Lightning

Ford Motor Co.’s (F) award-winning electric pickup truck has been one of the most popular electric vehicles in the United States in recent years. F-150 Lightning sales have doubled in the last quarter, hitting 7,162 units.

The full tax credit applies to the 2022-2025 F-150 Lightning with standard-range and extended-range batteries, helping boost sales. Ford also offered a series of incentives to boost sales and lower prices.

According to CarBuzz, the Detroit automaker also offers a deal that lets customers lease a 2024 F-150 Lightning. The deal includes $3,500 cash on the EV Red Carpet Lease and an additional $3,000 cash back.

Chevrolet Equinox

The 2024-2025 Equinox electric SUV is the last Chevy to qualify for the $7,500 tax credit.

The Equinox debuted in May as one of the most affordable electric vehicles. In the last quarter — the first full quarter of sales since the Equinox began delivering — more than 15,000 units were sold.

In October, General Motors confirmed that the lower-priced Chevrolet Equinox EV LT is available to order. Electrek reported that the tax credit can reduce prices to $27,495.

Chrysler Pacifica Hybrid

According to the Department of Energy, Chrysler’s Pacifica plug-in hybrid (STLA) is the only hybrid currently eligible for the full $7,500 tax credit.

The model gives consumers who are reluctant to completely abandon the reliability of a gas-powered vehicle a slight advantage over its all-electric rivals and a pricing advantage over fellow hybrids sold by Toyota Motor. The tax credit applies to Pacifica PHEV minivans from the 2022 through 2024 model years.

Honda Prologue

The 2024 Honda Prologue SUV was the fifth-best-selling electric vehicle in the United States in the last quarter, bested only by Ford’s Mustang Mach-E and a handful of Tesla models. That’s a strong performance for a vehicle launched in March, especially since it’s Honda’s first all-electric SUV.ZDX

Several automakers are taking steps to increase their vehicles’ eligibility for the tax credit. Hyundai Motor Co. (HYMTF) is one of them.

The South Korean automaker plans to build six models across its namesake brand and Kia and Genesis that will qualify for the tax credit through their U.S. assembly and battery supply operations. It’s building factories in Ellabell, Georgia, and Bartow County.

On Thursday, Hyundai unveiled the 2026 Ioniq 9, the first new model slated to be built at Ellabell. According to the company, the three-row electric SUV is expected to qualify for the full $7,500 tax credit.

Partial Credits

While these EVs and plug-in hybrids qualify for the $7,500 tax credit, several other models are eligible for a partial credit of about $3,750.

This includes Rivian’s (RIVN) R1T electric pickup truck and R1S electric SUV, and Nissan’s (NSANY) Leaf compact electric car. On the hybrid side, the Jeep Wrangler 4xe and Grand Cherokee 4xe, Ford Escape, Lincoln Corsair Grand Touring, and Audi Q5 across their model years.