Which EVs Qualify for the $7,500 Federal Tax Credit?
Electric vehicles are expensive. At least, in the United States they are. Frankly, the average cost of a new electric vehicle is around $55,242. However, certain EVs qualify for a hefty federal tax credit that significantly lessens the financial impact of buying an EV. However, this year, only so many electric cars, trucks, and SUVs qualify for the full-fat, $7,500 tax credit.
Final assembly requirements limit the number of EVs that qualify for the full $7,500 federal tax credit
Tragically, buying an EV in the United States is, on average, much more expensive than in other countries. For instance, the BYD Seagull sells for around $10,000 to $12,000 in China, about one-fifth the cost of the average EV in America. However, the federal tax credit can significantly lower the overall financial strain of buying a new EV.
Still, not every electric car qualifies for the full $7,500 credit. Check out a list of the qualifying models below!
| Year, make, model | Starting price (without tax incentive) |
| 2024 Acura ZDX | $65,850 |
| 2024 Cadillac Lyriq | $58,590 |
| 2024 Chevrolet Blazer | $50,195 |
| 2024 Chevrolet Equinox | $43,295 |
| 2024 Ford F-150 Lightning | $57,090 |
| 2024 Honda Prologue | $48,795 |
| 2024 Tesla Model 3 (Long Range) | $49,130 |
| 2024 Telsa Model Y | $44,380 |
| 2024 Tesla Model X | $79,380 |
| 2024 Volkswagen ID.4 | $41,160 |
To qualify for the full $7,500 federal tax credit, the following criteria come into play.
- Buyer income
- Vehicle type
- Vehicle price
- Location of assembly
Consequently, the final assembly requirements mandate that an EV be finished in North America to qualify for the full credit. But that doesn’t mean the electric car must be a product of a domestic automaker. No, the mandate allows foreign automakers to qualify for the incentive. For instance, the Tennessee-built Volkswagen ID.4 qualifies for the full $7,500 incentive, despite the German namesake.
Source: Cox Automotive
