EV Tax Credit: Rules for New and Used Electric Vehicles

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- What is the EV tax credit?
- Which cars qualify for a federal EV tax credit?
- How to qualify for the EV tax credit
- How the electric vehicle tax credit is calculated
- Used EV tax credit qualifications
- How to claim the federal EV tax credit
- What information do you need to claim the EV tax credit?
- EV rebates and incentives
- The bottom line
What is the EV tax credit?
Which cars qualify for a federal EV tax credit?
Cars eligible for a 2025 EV tax credit
Car Make and Model | Tax Credit Amount | MSRP Limit |
---|---|---|
Acura | ||
ZDX (2024-2025) | $7,500. | $80,000. |
Cadillac | ||
LYRIQ: Luxury, Sport and V-Series Models (2024-2026) | $7,500. | $80,000. |
OPTIQ (2025-2026) | $7,500. | $80,000. |
VISTIQ (2026) | $7,500. | $80,000. |
Chevrolet | ||
Blazer EV: LT, RS and SS Models (2024-2026) | $7,500. | $80,000. |
Equinox EV: LT and RS Models (2024-2026) | $7,500. | $80,000. |
Silverado EV: LT Model (2025-2026) | $7,500. | $80,000. |
Chrysler | ||
Pacifica PHEV (2024-2025) | $7,500. | $80,000. |
Ford | ||
F-150 Lightning: FLASH Trim (2024-2025) | $7,500. | $80,000. |
F-150 Lightning: LARIAT and XLT Trim (2023–2025) | $7,500. | $80,000. |
Genesis | ||
Electrified GV70 (2025) | $7,500. | $80,000. |
GMC | ||
Sierra EV (2026) | $7,500. | $80,000. |
Honda | ||
Prologue (2024-2025) | $7,500. | $80,000. |
Hyundai | ||
IONIQ 5 (2025) | $7,500. | $80,000. |
IONIQ 9 (2026) | $7,500. | $80,000. |
Jeep | ||
Wagoneer S (2025) | $7,500. | $80,000. |
Kia | ||
EV6 (2025) | $7,500. | $80,000. |
EV9 (2026) | $7,500. | $80,000. |
Tesla | ||
Cybertruck: Single and Dual Motor; Long Range (2025) | $7,500. | $80,000. |
Model 3 Long Range: AWD and RWD (2025) | $7,500. | $55,000. |
Model 3 Performance (2025) | $7,500. | $55,000. |
Model X AWD (2025) | $7,500. | $80,000. |
Model Y Long Range: AWD (2025-2026) and RWD (2025) | $7,500. | $80,000. |
Model Y Performance, Long Range RWD (2025); Long Range AWD (2025-2026) | $7,500. | $80,000. |
How to qualify for the EV tax credit
Vehicle price cap
- Vans, SUVs and pickup trucks: $80,000 or less.
- Sedans and passenger cars: $55,000 or less.
- Used: $25,000 or less.
EV tax credit income limits
New EVs
- Single and married filing separately: $150,000.
- Head of household: $225,000.
- Married filing jointly: $300,000.
Used EVs
- Single and married filing separately: $75,000.
- Head of household: $112,500.
- Married filing jointly: $150,000.
Final assembly requirements
How the electric vehicle tax credit is calculated
Battery requirement
- 2023: 50%
- 2024: 60%
- 2025: 60%
- 2026: 70%
Critical minerals requirement
- 2023: 40%
- 2024: 50%
- 2025: 60%
- 2026: 70%
Used EV tax credit qualifications
- Must be plug-in electric or fuel cell with at least 7 kilowatt hours of battery capacity.
- Only qualifies for the first transfer of a vehicle.
- Purchase price of car must be $25,000 or less.
- Car model must be at least two years old.
- Vehicle must weigh less than 14,000 pounds.
- Credit can only be claimed once every three years
.
How to claim the federal EV tax credit
Option 1: How to claim the clean vehicle tax credit on your taxes
Option 2: How to transfer the clean vehicle tax credit to a dealer
What information do you need to claim the EV tax credit?
If you’re claiming the credit on your tax return...
- Name and taxpayer identification number (TIN) of the seller.
- Name and TIN of the taxpayer.
- Date of sale and sales price.
- Verification of the maximum tax credit the vehicle is eligible for.
- The VIN, or vehicle identification number.
- The vehicle’s battery capacity.
- Verification that the taxpayer is the original user of the vehicle.
- A statement of declaration from the seller under penalty of perjury
.
If you’re transferring the credit to the dealer...
- Your modified adjusted gross income (MAGI) falls within the eligibility threshold.
- You understand that you must repay the IRS any rebate amount you accepted if your MAGI was above the accepted limits.
- The car will be primarily for personal use.
- You will file a tax return for the tax year in which you bought the car and provide the vehicle’s identification number and the date of the transfer election to the IRS.
- You elected to voluntarily transfer the credit
.
EV rebates and incentives
The bottom line
Article sources
- 1. Congress.gov. H.R.1 — 119th Congress (2025-2026). Accessed Jul 6, 2025.
- 2. Internal Revenue Service. Topic H — Transfer of New Clean Vehicle Credit and Previously-Owned Clean Vehicles Credit. Accessed Jul 6, 2025.
- 3. Internal Revenue Service. Updates to frequently asked questions related to New, Previously Owned, and Qualified Commercial Clean Vehicle Credits. Accessed Jul 6, 2025.
- 4. Internal Revenue Service. Credits for New Clean Vehicles Purchased in 2023 or After. Accessed Jul 6, 2025.
- 5. National Highway Traffic Safety Administration. NHTSA's VIN Decoder. Accessed Jul 6, 2025.
- 6. Internal Revenue Service. Used Clean Vehicle Credit. Accessed Jul 6, 2025.
- 3. Internal Revenue Service. Updates to frequently asked questions related to New, Previously Owned, and Qualified Commercial Clean Vehicle Credits. Accessed Jul 6, 2025.
- 3. Internal Revenue Service. Updates to frequently asked questions related to New, Previously Owned, and Qualified Commercial Clean Vehicle Credits. Accessed Jul 6, 2025.
- 9. Internal Revenue Service. Commercial Clean Vehicle Credit. Accessed Jul 6, 2025.
- 3. Internal Revenue Service. Updates to frequently asked questions related to New, Previously Owned, and Qualified Commercial Clean Vehicle Credits. Accessed Jul 6, 2025.
- 3. Internal Revenue Service. Updates to frequently asked questions related to New, Previously Owned, and Qualified Commercial Clean Vehicle Credits. Accessed Jul 6, 2025.
- What is the EV tax credit?
- Which cars qualify for a federal EV tax credit?
- How to qualify for the EV tax credit
- How the electric vehicle tax credit is calculated
- Used EV tax credit qualifications
- How to claim the federal EV tax credit
- What information do you need to claim the EV tax credit?
- EV rebates and incentives
- The bottom line