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Home ยป Just 7 Electric Vehicles Qualify for $7,500 Federal Tax Credit in 2024

Just 7 Electric Vehicles Qualify for $7,500 Federal Tax Credit in 2024

7 EV Qualify for $7,500 Federal Tax Credit in 2024

The list of EVs eligible for the maximum $7,500 federal tax credit in 2024 has shrunk dramatically based on newly released IRS guidance. Only 7 models from 3 automakers currently qualify, down 50% from over 15 in 2023. The strict battery component and assembly location rules imposed by the Inflation Reduction Act caused the significant reduction.

    For 2024, the select EVs still qualifying for the full incentive are:

  • Rivian R1S SUV
  • Rivian R1T pickup
  • Chevrolet Bolt EV hatchback
  • Chevrolet Bolt EUV crossover
  • Ford F-150 Lightning pickup
  • Tesla Model 3 Performance
  • All Tesla Model Y variants
  • Tesla Model X Long Range SUV

Meanwhile, several popular EVs like the Ford Mustang Mach-E, Nissan Leaf, Cadillac Lyriq, and VW ID.4 no longer meet the necessary criteria for any credit. Automakers including GM and VW are working to adjust sourcing and supply chains to potentially restore eligibility later in 2024.

The Cybertruck is not listed yet, but Tesla expects it to qualify for a partial credit when higher-priced trims launch. Tesla strategically optimized its lineup, dropping the RWD and Long Range Model 3 while adding back the Performance.

Related Post: Tesla Adjusts Lineup to Maximize New $7,500 Federal EV Tax Credit

Under the new rules, buyers can utilize credits at the point of sale instead of waiting to file taxes. This allows automakers like Tesla and Rivian who sell directly to apply discounts instantly.

The dramatic reduction shows the challenges automakers face adapting to policy changes. Sourcing domestic battery materials while ramping EV production proves difficult. Until eligibility expands, options are limited for buyers seeking the $7,500 maximum incentive in 2024.

On the positive side, at least some choices exist in every major category from pickup trucks to small cars. The Bolt EV continues offering the longest EPA range under $30,000. Though for Tesla buyers, more budget-friendly choices are gone.

Until the EV landscape stabilizes, those in the market must carefully research the latest incentive eligibility. Automakers are working feverishly to unlock federal credits again for their lineups.

For now, a little over half dozen 2024 models retain the full $7,500. But more qualifying EVs may emerge later in the year as manufacturers adapt. Stay tuned for the latest updates.