What Electric Cars Qualify for Tax Credit in the US?

The most sustainable break when buying an electric vehicle is a tax credit. In the US, a tax credit for electric cars can be as large as $7500. Vehicles eligible for the tax credit are all Electric Vehicles (EVs), and Plug-In Hybrid Electric Vehicles (PHEVs) purchased new in or after 2010.

Here’s a detailed list to answer what electric cars qualify for a tax credit in the US.

But first,

It’s important to know that the tax credit amount varies depending on the battery capacity and vehicle power. A tax credit can also apply hand-in-hand with state and local incentives. How much you get is dependent on how much you owe in income tax.

If your vehicle of choice like the Nissan Leaf qualifies for the tax credit, and you owe $3000 in income tax, you are eligible for $3000 in tax credit. But if you owe $12,000 in income tax, you qualify for the full $7500 tax credit. However, you don’t get the unused portion as a refund or carried over for next year’s taxes.

Another thing to keep in mind is that tax credit is available for automakers who have not topped 200,000 units sold. This means electric vehicles by Tesla and GM no longer qualify for tax credits since the automakers topped over 200,000 qualified plug-in electric vehicles.

To get the tax credit, you have first to buy a vehicle that qualifies, then fill out form 8936. This form goes along with your tax return. The credits only apply to the income tax in a given year. That’s why the balance cannot be rolled over.

The electric vehicles below are only relevant at the time of publishing this guide.

Plug-In Hybrid Electric Vehicles (PHEVs)

Final Thoughts – What Electric Cars Qualify for Tax Credit in the US?

In this- what electric cars qualify for tax credit in the US guide, you can see that Tesla is not eligible for any tax credit. However, you may be eligible for state incentives if you’re eyeing a Tesla. Still, the amount you qualify for varies by state.

This guide will help you find the best car that qualifies for tax credit and one where you can get the most tax credit.

Sam

Sam is Automole’s editor-in-chief and classic car enthusiast. Sam is studying mechanical engineering at Cockrell School of Engineering, Austin. He also writes for many top automotive publications and appears on the Collecting Cars Podcast.