The US government revealed it list of electric vehicles that qualify for the full federal tax credit under the newer, more stringent guidelines, and you can count them on one hand. General Motors’ outgoing Chevy Bolt, as well as some variants of the Ford F-150 Lightning and Tesla’s Model 3, Model Y and Model X are now the only EVs eligible for the $7,500 rebate.
Beyond that, certain variants of Rivian’s R1S and R1T, as well as a handful of plug-in hybrids, qualify for $3,750. Chrysler’s Pacifica plug-in hybrid managed to remain eligible for the full credit. Otherwise, that’s it.
Until that list was published on Monday, the new requirements had many wondering exactly what would qualify. Even Tesla admitted in his own way that he wasn’t exactly sure.
The reason the list is so anemic is because lawmakers are trying to force the EV supply chain to shift — or at least diversify — from China to North America in the long term. In the short term, this means that automakers that rely heavily on Chinese suppliers, especially for battery materials and components, are losing their relevance. This is on top of a few other restrictions, such as the fact that the vehicles must be built in North America and must sell for less than $55,000 or $80,000, depending on the type of vehicle.
While it will be harder to find a vehicle that qualifies for the federal EV tax credit, the credit itself is much better for consumers in two key ways. First, the credit is now applied when you buy the car, meaning you won’t have to wait to claim it on your tax returns.
Second, buyers no longer have to have a tax liability equal to or greater than the amount of the credit — a rule that previously prevented many buyers from accessing the credit in the first place. (So buyers still need to have a certain adjusted gross income to qualify. Here a list of frequently asked questions from the IRS;.)
Some automakers, such as GM, have said they are working to replace parts that disqualify their electric cars from the credit, so the list will grow as the year goes on. A number of automakers and suppliers are rushing to build new factories in North America in order to lighten the burden in the coming years. But until that happens, here’s the full list of what’s eligible:
Full $7,500 tax credit
- Chevrolet Bolt EV
- Chevrolet Bolt EUV
- Chrysler Pacifica PHEV
- Ford F-150 Lightning Extended Range
- Ford F-150 Lightning Standard Range
- Tesla Model 3 Performance
- Tesla Model Y All-Wheel Drive
- Tesla Model Y Performance
- Tesla Model Y with rear wheel drive
- Tesla Model X Long Range
$3,750 tax credit
- Ford Escape PHEV
- Jeep Grand Cherokee PHEV 4xe
- Jeep Wrangler PHEV 4xe
- Lincoln Corsair Grand Touring PHEV
- Rivian R1S Dual-Motor Large Pack
- Rivian R1S Quad-Motor Large Pack
- Rivian R1T Dual-Motor Large Pack
- Rivian R1T Dual-Motor Max Pack
- Rivian R1T Quad-Motor Large Pack
