The number of EVs that can get you full clean vehicle tax credit of 7500 dollars just went up. The vehicles that were omitted from the list of qualifying purchases included some shock names, however, there has been an update.
An EV or Hybrid had to meet certain requirements to be eligible for the full 7,500 dollar credit. Only 10 cars met these requirements and a further 7 qualified for a tax credit of half the total available amount.
Volkswagen ID.4 was one of the huge omissions from the list of eligible vehicles that puzzled many. However, things have been sorted and the vehicle is back on the list and is eligible for the tax credit as it now builds its electric crossover in Chattanooga, Tennessee.
Responding to this news President and CEO of Volkswagen Group of America, Pablo Di Si shared, “This is great news for consumers in the US because it expands the choice of truly affordable EVs. The ID.4 is already one of the lowest-priced electric SUVs on the market, and the $7,500 Federal Tax Credit makes it even more attainable.
This shows that we made the right decision to localize production of the ID.4 in Tennessee and invest even further in battery production, components, and innovation. Every ID.4 sold supports thousands of American jobs and helps advance our goal of a carbon-neutral future.”
With the tax credit in place, the price of the cheapest ID. 4 Volkswagen comes down to 31,495 dollars. However, it just isn’t Volkswagen that is back on the list. R1T pickup truck and R1S SUV also qualify for half the amount of the total tax credit available if you opt for the models that cost less than 80,000 dollars.
The dual-motor R1T pickup truck has a starting price of 73,000 dollars and the model with a larger range also has a price of less than 80,000 dollars.
If you want the Rivian SUV as opposed to the pickup truck then you have just one option available. The dual motor R1S costs 78,000 dollars and is therefore the only qualifying option available.
Chevrolet Blazer that will be shown off this July also qualifies for the full 7,500 dollar tax credit. The EV is expected to have a starting price of close to 45,000 dollars.
The number of EVs that can get you full Clean Vehicle Tax Credit of 7500 Dollars just went up and so the new list now looks like this:
- Cadillac Lyriq
- Chevrolet Blazer
- Chevrolet Bolt
- Chevrolet Bolt EUV
- Chevrolet Silverado EV
- Chevrolet Equinox EV
- Chrysler Pacifica PHEV
- Ford F-150 Lightning
- Lincoln Aviator Grand Touring PHEV
- Tesla Model 3 Performance
- Tesla Model Y
- Volkswagen ID.4
Certain plug-in models that satisfy half battery requirements are eligible for 3,750 dollars of tax credits. This list includes the following names:
- Ford Escape PHEV
- Ford E-Transit
- Ford Mustang Mach-E
- Jeep Wrangler 4xe
- Jeep Grand Cherokee 4xe
- Lincoln Corsair Grand Touring PHEV
- Rivian R1S
- Rivian R1T
- Tesla Model 3 Standard Range
Leased EVs and Plug-in Hybrids are free from the burden of meeting domestic sourcing requirements since IRS does not hold commercial vehicle buyers to the same standards.
Not every automaker’s lender is willing to offer a lease incentive of 7,500 dollars. The list includes names such as Volvo, Volkswagen, Mercedes-Benz, Porsche, Polestar, Jaguar, Lucid, Audi, Hyundai, BMW, and Chrysler.