As electric vehicles (EVs) and plug-in hybrids (PHEVs) continue to reshape the automotive landscape, savvy buyers are turning their attention to the substantial savings offered through federal incentives. With rising fuel costs and a growing emphasis on sustainable driving, these tax credits can make switching to an electrified ride more affordable than ever. But time is of the essence—the program is set to wrap up on September 30, 2025, prompting a surge in interest from drivers eager to lock in these benefits before they’re gone. Whether you’re eyeing a sleek sedan for city commutes or a rugged SUV for family adventures, understanding which models qualify can help you maximize your savings and minimize your carbon footprint.
In this comprehensive guide, we’ll break down everything you need to know about the federal clean vehicle tax credit, including eligibility rules, a detailed list of qualifying models, and practical tips to claim your rebate. Let’s dive in and explore how you can drive home a greener future while keeping more money in your pocket.
Understanding the Federal Tax Credit for EVs and PHEVs
The federal clean vehicle tax credit, established under the Inflation Reduction Act and updated through subsequent legislation, provides up to $7,500 for new qualifying EVs and PHEVs purchased and placed in service between 2023 and September 30, 2025. This nonrefundable credit reduces your federal income tax liability dollar-for-dollar, potentially wiping out what you owe or significantly lowering your bill when you file.
Key Eligibility Criteria for Vehicles
Not every electric or hybrid vehicle makes the cut. To qualify for the full $7,500 credit, a new vehicle must meet these strict requirements:
- Battery and Sourcing Rules: The battery must have at least 7 kWh capacity, with a portion of critical minerals extracted or processed in the U.S. or free-trade partner countries (up to $3,750), and battery components manufactured or assembled in North America (up to $3,750). Vehicles meeting only one criterion may qualify for a partial $3,750 credit.
- Assembly Location: Final assembly must occur in North America.
- MSRP Limits: No more than $80,000 for SUVs, vans, and trucks; $55,000 for sedans and other cars.
- Weight Class: Gross vehicle weight rating under 14,000 pounds.
- Qualified Manufacturers: Only vehicles from manufacturers that comply with reporting rules are eligible.
Fuel cell electric vehicles (FCEVs) also qualify, though they’re less common in the current market.
Buyer Eligibility
The credit isn’t just about the car—it’s about you too:
- Income Limits: Your modified adjusted gross income can’t exceed $150,000 for single filers, $225,000 for heads of household, or $300,000 for joint filers (based on the current or prior tax year, whichever is lower).
- Usage: The vehicle must be for personal use in the U.S., not resale.
- Purchase Date: Must be before October 1, 2025. However, if you place a binding order and make a non-refundable deposit before September 30, 2025, you can still claim the credit even if delivery happens later.
Dealers can transfer the credit directly to you at the point of sale, turning it into an instant discount—perfect for those who might not have enough tax liability to use the full amount.
Full List of Qualifying New Electric Cars and Plug-In Hybrids
The landscape of qualifying vehicles shifted in 2025 due to stricter battery sourcing rules, reducing the number of eligible models. Automakers have been adapting, with more options expected to join throughout the year. Below is an up-to-date compilation of models that qualify for the tax credit as of mid-September 2025, based on the latest available data. We’ve organized them by make for easy browsing.
| Make | Model | Model Years | Vehicle Type | Credit Amount | MSRP Cap |
| Acura | ZDX | 2024-2026 | EV | $7,500 | $80,000 |
| Cadillac | Lyriq | 2024-2026 | EV | $7,500 | $80,000 |
| Cadillac | Optiq | 2025-2026 | EV | $7,500 | $80,000 |
| Cadillac | Vistiq | 2026 | EV | $7,500 | $80,000 |
| Chevrolet | Blazer EV (LT, RS, SS) | 2024-2026 | EV | $7,500 | $80,000 |
| Chevrolet | Equinox EV (LT, RS) | 2024-2026 | EV | $7,500 | $80,000 |
| Chevrolet | Silverado EV (LT) | 2025-2026 | EV | $7,500 | $80,000 |
| Chrysler | Pacifica PHEV | 2024-2025 | PHEV | $7,500 | $80,000 |
| Ford | F-150 Lightning (Flash, Lariat, XLT) | 2023-2025 | EV | $7,500 | $80,000 |
| Genesis | Electrified GV70 | 2025-2026 | EV | $7,500 | $80,000 |
| GMC | Sierra EV | 2026 | EV | $7,500 | $80,000 |
| Honda | Prologue | 2024-2026 | EV | $7,500 | $80,000 |
| Hyundai | Ioniq 5 | 2025 | EV | $7,500 | $80,000 |
| Hyundai | Ioniq 9 | 2026 | EV | $7,500 | $80,000 |
| Jeep | Wagoneer S | 2025 | EV | $7,500 | $80,000 |
| Kia | EV6 | 2025 | EV | $7,500 | $80,000 |
| Kia | EV9 | 2026 | EV | $7,500 | $80,000 |
| Tesla | Cybertruck (Single/Dual Motor, Long Range) | 2025 | EV | $7,500 | $80,000 |
| Tesla | Model 3 (Long Range AWD/RWD, Performance) | 2025 | EV | $7,500 | $55,000 |
| Tesla | Model X AWD | 2025 | EV | $7,500 | $80,000 |
| Tesla | Model Y (Long Range AWD/RWD, Performance) | 2025-2026 | EV | $7,500 | $80,000 |
This list focuses on models confirmed to meet all criteria for the full credit. Always verify with the dealer or use the official tool on FuelEconomy.gov for the most current status, as manufacturers may update compliance throughout the year.
Don’t Forget the Used EV Tax Credit
If a brand-new model is out of reach, consider the used clean vehicle credit, offering up to $4,000 (or 30% of the sale price, whichever is less) for qualifying pre-owned EVs and PHEVs purchased from a licensed dealer before September 30, 2025. Key rules include:
- Price cap of $25,000.
- Model year at least two years older than the purchase year (e.g., 2023 or earlier for 2025 buys).
- Battery capacity of at least 7 kWh.
- Lower income thresholds: $75,000 for singles, $112,500 for heads of household, $150,000 for joint filers.
Popular used options often include older Tesla Model 3s, Nissan Leafs, Chevrolet Bolts, and Ford Mustang Mach-Es—check dealer inventories for deals that could stack with state incentives for even bigger savings.
How to Claim Your Tax Credit and Maximize Savings
Claiming the credit is straightforward:
- Point-of-Sale Transfer: Opt to have the dealer apply the credit as a discount during purchase—ideal for immediate savings.
- File with IRS: If not transferred, use Form 8936 when filing your taxes. Include the VIN and a time-of-sale report from the dealer.
- Stack Incentives: Combine with state rebates, utility discounts, or home charging credits for total savings exceeding $10,000 in some cases.
With the deadline looming, dealerships are rolling out aggressive promotions, including low-lease deals and haggling opportunities. Pro tip: Leasing can sometimes bypass certain restrictions, as the credit goes to the leasing company, which may pass savings to you.
Why Now Is the Perfect Time to Go Electric
Switching to an EV or PHEV isn’t just about tax savings—it’s about lower operating costs, instant torque for thrilling drives, and contributing to cleaner air. With models like the Tesla Model Y offering over 300 miles of range and family-friendly space, or the Ford F-150 Lightning blending truck toughness with zero emissions, there’s something for every lifestyle. As inventories move quickly ahead of the deadline, don’t miss out on what could be the last chance to score these incentives. Head to a dealership today, test drive your favorites, and drive into a brighter, more efficient tomorrow.
