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:

Be an individual who bought the vehicle for use and not for resale
Must be an individual (no businesses)
Not be the original owner
Not be claimed as a dependent on another person’s tax return
Not have claimed another used clean vehicle credit in the 3 years before the EV purchase date
Modified adjusted gross income must not exceed $75k for individuals, $112,500 for heads of households, and $150k for joint returns

Additionally, for used EV to qualify for federal tax credits, it must:

Have a sale price of $25,000 or less
Have a model year at least 2 years earlier than the calendar year when you buy it

For example, a vehicle purchased in 2023 would need a model year of 2021 or older

Not have already been transferred after August 16, 2022, to a qualified buyer
Have a gross vehicle weight rating of less than 14,000 pounds
Be an eligible FCV or plug-in EV with a battery capacity of least 7 kilowatt hours (kWh)
Be for use primarily in the United States
Purchased from a certified dealer:

For qualified used EVs, the dealer reports required information to you at the time of sale and to the IRS

A used vehicle qualifies for tax credit only once in its lifetime

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.

Merchant Policies