Anew Inflation Reduction Act has been signed into law, and new electric vehicle tax credit rules have come with it.
Initially, it was feared that no vehicle would qualify for the tax credit, given the stringent manufacturing requirements. Fortunately, the Department of Energy has assuaged some of those fears and has released a list of new EVs that qualify in 2022, as well as a few vehicles that will qualify next year.
The list isn’t very long, with only 18 vehicles qualifying for the credit in 2022. The Department of Energy also notes that the tax credit only applies to final-assembled vehicles in North America.
A VIN decoder is provided to see which vehicle qualifies, as many vehicles have multiple assembly locations. Because when it comes to federal law, words like “simple” and “easy to understand” don’t always apply. The list of new 2022 vehicles that qualify for the EV tax credit includes the Audi Q5, the BMW 3 Series Plug-in and the BMW X5 EV.
Chrysler Pacifica PHEV and Ford F-150 Lightning, Mustang Mach-E and Transit Van are eligible. For Jeep, both the Grand Cherokee PHEV and the Wrangler 4xe PHEV will earn buyers a $ 7,500 tax credit. The Lincoln Aviator PHEV and Corsair Plug-in, as well as the Lucid Air and Nissan Leaf have been named eligible vehicles. The Rivian R1S, R1T and EDV qualify. The Volvo S60 completes the list of eligible vehicles for 2022.
For 2023, BMW’s 3-Series Plug-in, the EQS from Mercedes-Benz, and the ubiquitous Nissan Leaf make the cut.
What About Tesla?
Tesla, General Motors, and Chevrolet are conspicuously absent from that list. Those manufacturers have already met the sales cap of 200,000 set by the Department of Energy for this year, but a number of vehicles will be eligible for the tax credit in 2023.
Both the current and next model year’s Chevrolet Bolt will have to wait until 2023 to get the credit. The GMC Hummer Pickup and SUV versions will not be eligible this year. Tesla’s entire lineup, the Model 3, Y, S, and X are not eligible either.
Finally, Cadillac’s first all-electric vehicle, the Lyriq, won’t qualify until January 2023. If you were looking to get a good deal on a Tesla or Chevy Bolt this year, you might want to wait until next year before pulling the trigger. A $ 7,500 tax credit is nothing to sneeze at. Hopefully, these incentives will encourage more people to buy electric vehicles in the years to come.
Although vehicles such as the Ford F-150 Lightning represent an exciting look into the possible future of electric vehicles, there are still not many options for those looking to purchase an affordable electric vehicle.
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