January 1, 2023, kicked off a fresh start of new tax credits for vehicles, both new and used. Since then, much of the dust has settled on the Capitol as it continues to implement qualifying terms for tax credits, continuously shifting what used EVs do and do not qualify. Here’s the latest list.
A Used EV Might be the Way to go in 2024
Although the $7,500 federal tax credit has been extended for new EV purchases under revised qualifying terms, those current requirements leave a very limited the number of EVs that qualify.
Many automakers are already pivoting their business strategies to move EV and battery assembly to US soil to qualify once again, but it will take time to establish those facilities and get them up and running. In the meantime, it might be worth considering a used EV to take advantage of the revamped federal tax credit up to $4,000. Here’s how it works.
How the Current Tax Credit Works for Used EVs
In a perfect world for consumers, all used EV purchases would qualify for tax credits from the US government, but that’s unfortunately not the case. As part of revised terms in the Inflation Reduction Act signed by President Biden, federal tax credits have been extended and include revamped benefits for used EV purchases. If they fit certain criteria. Per the IRS:
Beginning January 1, 2023, if you buy a qualified previously owned electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a previously owned clean vehicle tax credit under Internal Revenue Code Section 25E.
Used EVs no see revised terms that offer a credit equal to 30% percent of the sale price (up to $4,000). That should help consumers like yourselves get some change back in your pocket at the end of the fiscal year. If you stick to these terms as outlined by the IRS.
To qualify as a customer, you must:
Additionally, for used EV to qualify for federal tax credits, it must:
Here are all the Used EVs that qualify for tax credits
As promised, here is the current list of used EVs that qualify for tax credits in the US, per the IRS, separated by all-electric BEVs and plug-in hybrids (PHEVs). It’s important to note that this is not the end of all, be all list of used EVs that qualify for tax credits in the US. Once again, per the IRS:
Manufacturers of the vehicles listed below have provided appropriate information and have indicated that the vehicles are eligible for credit provided other requirements are met.
This is simply the list provided by the government which will be continually updated by both them and us. Additionally, some of these EVs are especially 2021 or 2022 models, and it will be nearly impossible to find them on sale below $25k. If you do somehow luck out, more power to you, because you may qualify for additional savings. As always, we recommend speaking with a tax professional and EV dealer directly to ensure what you and your new vehicle qualify for. Without further ado, here are the all-electric models that currently qualify:
All-Electric Models
Make/Model/Year(s)
Full Tax Credit
AUDI
e-tron (2019, 2021-2022)
$4,000
e-tron Sportback (2020-2022)
$4,000
BMW
i3 (with or without range extender) (2014-2021)
$4,000
i3 (60Ah) (2017)
$4,000
i3s (with or without range extender) (2018-2021)
$4,000
i4 Gran Coupe (2022)
$4,000
iX xDrive50 (2022)
$4,000
CHEVROLET (GM)
Bolt (2017-2021)
$4,000
Bolt EV (2022)
$4,000
Bolt EUV (2022)
$4,000
Spark EV (2014-2016)
$4,000
FIAT
500e (2013-2019)
$4,000
FORD MOTOR COMPANY
E-Transit (2022)
$4,000
F-150 Lightning Standard/Extended Range (2022)
$4,000
Focus Electric (2012-2018)
$4,000
Mustang Mach-E (2021-2022)
$4,000
GENESIS
G80 (2022)
$4,000
HYUNDAI
IONIQ 5 (2022)
$4,000
Ioniq BEV (2017-2021)
$4,000
Kona Electric (2019-2022)
$4,000
JAGUAR
TBD
KIA
EV6 (2022)
$4,000
Niro EV (2019-2022)
$4,000
Soul EV (2015-2020)
$4,000
LAND ROVER
TBD
LUCID MOTORS
Air (all trims) (2022)
$4,000
MAZDA
TBD
MERCEDES-BENZ
B250e (B-Class) (2014-2017)
$4,000
EQB SUV (all trims) (2022)
$4,000
EQS Sedan (all trims) (2022)
$4,000
MINI
Cooper S E Hardtop (2020-2022)
$4,000
MITSUBISHI
i-MiEV (2012-2014, 2016-2017)
$4,000
NISSAN
LEAF (all models) (2011-2022)
$4,000
POLESTAR
2 (2021-2022)
$4,000
PORSCHE
Taycan (all models) (2020-2022)
$4,000
RIVIAN
EDV (2022)
$4,000
R1T (2022)
$4,000
R1S (2022)
$4,000
smart
Coupe EV (2013-2018)
$4,000
EQ Fortwo Coupe (2019)
$4,000
Cabrio EV (2013-2015, 2017-2018)
$4,000
EQ Fortwo Cabrio (2019)
$4,000
SUBARU
TBD
TESLA
Model 3 (2017-2022)
$4,000
Model S (2012-2021)
$4,000
Model X (2016-2021)
$4,000
Model Y (2020-2022)
$4,000
Roadster (2009-2011)
$4,000
TOYOTA
RAV4 EV (2012-2014)
$4,000
VOLKSWAGEN
e-Golf (2015-2019)
$4,000
ID.4 (all models) (2021-2022)
$4,000
VOLVO
C40 (2022)
$4,000
XC40 Recharge (2021-2022)
$4,000
Used Plug-In Hybrids EVs That Qualify for Tax Credits
Make/Model/Year(s)
Full Tax Credit
AUDI
A3 e-tron/ultra (2016-2018)
$4,000
A7 55 TFSI e Quattro (2021-2022)
$4,000
A8L PHEV (2020)
$4,000
A8L 60 TFSI e Quattro (2021)
$4,000
Q5 PHEV (2020)
$4,000
Q5 55 TFSI e Quattro (2021-2022)
$4,000
BENTLEY MOTORS
Bentayga Hybrid SUV (2020-2021)
$4,000
BMW
i8 (2014-2017)
$4,000
i8 Coupe/Roadster (2019-2020)
$4,000
330e (2016-2018, 2021-2022)
$4,000
330e xDrive (2021-2022)
$4,000
530e/xDrive (2018-2022)
$4,000
740e (2017)
$4,000
740e xDrive (2018-2021)
$4,000
745e xDrive (2020-2022)
$4,000
X3 xDrive30e (2020-2021)
$4,000
X5 xDrive40e (2016-2018)
$4,000
X5 xDrive45e (2021-2022)
$4,000
CADILLAC (GM)
ELR (2014-2016)
$4,000
CHEVROLET (GM)
Volt (2011-2019)
$4,000
CHRYSLER
TBD
FORD MOTOR COMPANY
C-Max Energi (2013-2017)
$4,000
Escape Plug-In Hybrid (2020-2022)
$4,000
Fusion Energi (2013-2020)
$4,000
HONDA
Clarity Plug-in Hybrid (2018-2021)
$4,000
HYUNDAI
Ioniq PHEV (2018-2022)
$4,000
Santa Fe PHEV (2022)
$4,000
Sonata PHEV (2016-2019)
$4,000
Tucson PHEV (2022)
$4,000
JAGUAR
TBD
JEEP
Grand Cherokee 4xe (2022)
$4,000
Wrangler 4xe (2021-2022)
$4,000
KIA
Niro PHEV (2018-2022)
$4,000
Optima PHEV (2017-2020)
$4,000
Sorento PHEV (2022)
$4,000
LAND ROVER
TBD
LEXUS
NX PHEV (2022)
$4,000
LINCOLN
Aviator Grand Touring (2020-2022)
$4,000
Corsair Grand Touring (2021-2022)
$4,000
MAZDA
TBD
MERCEDES-BENZ
S550e PHEV (2015-2017)
$4,000
S560e EQ PHEV (2020)
$4,000
GLC350e 4M (2018-2020)
$4,000
GLE550e 4M (2016-2018)
$4,000
MINI
Cooper S E Countryman ALL4 (2018-2022)
$4,000
MITSUBISHI
TBD
Outlander PHEV (2018-2022)
$4,000
POLESTAR
1 (2020-2021)
$4,000
PORSCHE
Cayenne E-Hybrid (all models) (2015-2022)
$4,000
Panamera E-Hybrid (all models) (2014-2016, 2018-2022)
$4,000
SUBARU
Crosstrek Plug-In Hybrid (2019-2022)
$4,000
TOYOTA
Prius Prime PHEV (2017-2022)
$4,000
RAV4 Prime PHEV (2021-2022)
$4,000
VOLKSWAGEN
TBD
VOLVO
S60 (2019-2022)
$4,000
S90 (2018-2022)
$4,000
V60 (2020-2022)
$4,000
XC60 (2018-2022)
$4,000
XC90 (2016-2022)
$4,000
Other Resources for EV Tax Credits
While tax credits for used EVs are newly revamped and may be the way to go for you personally, there are plenty of other options to get money back from Uncle Sam at the end of the fiscal year.
For instance, revised terms outlined in the Inflation Reduction Act went into effect January 1, 2023, and enable the extension of federal tax credits for new EV purchases through the next decade, while once again allowing EVs from American automakers like Tesla and GM to qualify once again.
That being said, the capitol is still trying to settle a lot of these terms to determine what vehicles qualify, so things are a bit cloudy at the moment, but you may be able to take advantage of tax credits before battery assembly requirements kick in later this year.
Learn more about federal tax credits for new EV purchases here.
Have a question or need more information about our services? Fill out the form below, and one of our experts will get back to you soon.