Dark Light

Here are all the used EVs that qualify for the new $4,000 tax credit Leave a comment


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 current EVs that qualify.

Many automakers are already pivoting their business strategies to move EV and battery assembly to US soil to once again qualify, 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 in order 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, any and 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. As long as 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 offers 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. As long as 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, in order 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
Used EV tax credit
A 2020 Nissan LEAF SV Plus. Definitely worthy of used EV tax credits

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 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 the 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 especially are 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 in order to ensure what you and your new vehicle qualify for. Without further adieu, here are the all-electric models that currently qualify:

All-electric models

Make/Model/Year(s) Full Tax Credit
e-tron (2019, 2021-2022) $4,000
e-tron Sportback (2020-2022) $4,000
i3 (60Ah) (2017) $4,000
i3 (2014-2021) $4,000
i3s (2018-2021) $4,000
i4 Gran Coupe (2022) $4,000
iX xDrive50 (2022) $4,000
Bolt (2017-2021) $4,000
Bolt EV (2022) $4,000
Bolt EUV (2022) $4,000
Spark EV (2014-2016) $4,000
500e (2013-2019) $4,000
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
G80 (2022) $4,000
IONIQ 5 (2022) $4,000
Ioniq BEV (2017-2021) $4,000
Kona Electric (2019-2022) $4,000
EV6 (2022) $4,000
Niro EV (2019-2022) $4,000
Soul EV (2015-2020) $4,000
Air (all trims) (2022) $4,000
B250e (B-Class) (2014-2017) $4,000
EQB SUV (all trims) (2022) $4,000
EQS Sedan (all trims) (2022) $4,000
Cooper S E Hardtop (2020-2022) $4,000
i-MiEV (2012-2014, 2016-2017) $4,000
LEAF (all models) (2011-2022) $4,000
2 (2021-2022) $4,000
Taycan (all models) (2020-2022) $4,000
EDV (2022) $4,000
R1T (2022) $4,000
R1S (2022) $4,000
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
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
RAV4 EV (2012-2014) $4,000
e-Golf (2015-2019) $4,000
ID.4 (all models) (2021-2022) $4,000
C40 (2022) $4,000
XC40 Recharge (2021-2022) $4,000
Last updated 3/19/2024, most recent changes in bold
Used EV tax credit
The Audi Q5 TFSI e Quattro. Currently qualified for used EV tax credits as a PHEV / Source: Audi

Used plug-in hybrids EVs that qualify for tax credits

Make/Model/Year(s) Full Tax Credit
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
Bentayga Hybrid SUV (2020-2021) $4,000
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
ELR (2014-2016) $4,000
Volt (2011-2019) $4,000
Pacifica PHEV (2017-2022) $4,000
C-Max Energi (2013-2017) $4,000
Escape Plug-In Hybrid (2020-2022) $4,000
Fusion Energi (2013-2020) $4,000
Clarity Plug-in Hybrid (2018-2021) $4,000
Ioniq PHEV (2018-2022) $4,000
Santa Fe PHEV (2022) $4,000
Sonata PHEV (2016-2019) $4,000
Tucson PHEV (2022) $4,000
Grand Cherokee 4xe (2022) $4,000
Wrangler 4xe (2021-2022) $4,000
Niro PHEV (2018-2022) $4,000
Optima PHEV (2017-2020) $4,000
Sorento PHEV (2022) $4,000
NX PHEV (2022) $4,000
Aviator Grand Touring (2020-2022) $4,000
Corsair Grand Touring (2021-2022) $4,000
S550e PHEV (2015-2017) $4,000
S560e EQ PHEV (2020) $4,000
GLC350e 4Matic/ EQ (2018-2020) $4,000
GLE550e 4Matic (2016-2018) $4,000
Cooper S E Countryman ALL4 (2018-2022) $4,000
Outlander PHEV (2018-2022) $4,000
1 (2020-2021) $4,000
Cayenne E-Hybrid (all models) (2015-2022) $4,000
Panamera E-Hybrid (all models) (2014-2016, 2018-2022) $4,000
Crosstrek Plug-In Hybrid (2019-2022) $4,000
Prius Prime PHEV (2017-2022) $4,000
RAV4 Prime PHEV (2021-2022) $4,000
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
Last updated 3/19/2024, most recent changes in bold

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 affect 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 once again qualify.

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.

Whether it’s a new or used EV purchase that ends up being right for you, you may still be able to take advantage of additional perks at the state level, depending where you live. Credits, exemptions, and other benefits could be available for an EV purchase, lease, or for relevant equipment like home charger installation.

You can check out what EV-centric benefits may be available to you, sorted by state, here.

We’d like to reiterate once last time that we recommend doing your own research and speaking with a tax professional and EV dealer directly in order to ensure exactly what you and your vehicle purchase qualify for.

Good luck in EV your search!

FTC: We use income earning auto affiliate links. More.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *