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Electric vehicle (EV) tax credit policies got a major overhaul in August with the Inflation Reduction Act. From January 2023 onwards, your EV tax credit is determined by your income, the price of the car you want, and where it came from.

What income range qualifies for the new EV tax credit?

Tax credits now only apply to buyers with incomes less than or equal to$150,000 for single filers,$225,000 for heads of household, and$300,000 for joint filers. 

Also: The 5 best electric cars: Plus, the cheapest EV available 

What car price range qualifies?

The price of the new EV purchased must be less than$55,000 for cars and below$80,000 for SUVs, pickup trucks, and vans in order to qualify. 

Do used EVs qualify for the tax credit?

The new credit expands eligibility by including used EVs, as well as new ones -- if you buy a used EV, you could receive a credit of up to$4,000. 

What are the EV manufacturer limitations?

If you want to purchase an EV with an up to$7,500 tax credit, you can only consider EVs assembled in North America and powered by batteries with materials sourced from the US or its free trade partners. Essentially, your new electric car needs a "Made in America" stamp.

These provisions limit the manufacturers that qualify for the credit. According to PBS, battery materials processed in China power the vehicles of quite a few American EV manufacturers, including Tesla. The new credit also raises the bar for plug-in hybrids or PHEVs: TechCrunch notes that new PHEVs need 7 kWh battery packs in order to qualify. One of the aims of the act is to make electric cars more affordable, but fewer models of EVs meet all of these parameters. 

Also: I loved driving the Hyundai Ioniq 5 and Kia EV6. Here's why I can't buy one

How do I claim an EV tax credit?

Instead of financing the full price of the car and then getting money back when filing taxes, buyers can immediately purchase the car at the dealership with the credit deducted from the price. 

How many times can I claim the EV tax credit?

According to Bankrate, two people in the same household can separately claim the credit if they buy two EVs individually. If they buy an EV together, the credit only applies once. 

How do I get a$7,500 EV tax credit?

Starting January 2023, the dealership should have the tax credit already factored into the price. You get the credit included with the price of the EV.

Here's a list of vehicles that qualify for the tax credit, taken directly from the Department of Energy website. If there's a "Manufacturer sales cap met" note, that means that the manufacturer reached their limit of EV credits used and isn't currently eligible. These are all of the EVs assembled in North America.

Model Year	Vehicle	Note
2022	Audi Q5
2022	BMW 330e
2022	BMW X5
2022	Chevrolet Bolt EUV	Manufacturer sales cap met
2022	Chevrolet Bolt EV	Manufacturer sales cap met
2022	Chrysler Pacifica PHEV
2022	Ford Escape PHEV
2022	Ford F Series
2022	Ford Mustang MACH E
2022	Ford Transit Van
2022	GMC Hummer Pickup	Manufacturer sales cap met
2022	GMC Hummer SUV	Manufacturer sales cap met
2022	Jeep Grand Cherokee PHEV
2022	Jeep Wrangler PHEV
2022	Lincoln Aviator PHEV
2022	Lincoln Corsair Plug-in
2022	Lucid Air
2022	Nissan Leaf
2022	Rivian EDV
2022	Rivian R1S
2022	Rivian R1T
2022	Tesla Model 3	Manufacturer sales cap met
2022	Tesla Model S	Manufacturer sales cap met
2022	Tesla Model X	Manufacturer sales cap met
2022	Tesla Model Y	Manufacturer sales cap met
2022	Volvo S60
2023	BMW 330e
2023	Bolt EV	Manufacturer sales cap met
2023	Cadillac Lyriq	Manufacturer sales cap met
2023	Mercedes EQS SUV
2023	Nissan Leaf

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