2022 Electric Vehicle Tax Credits: Which EVs & Hybrids Qualify?

If your new EV qualifies for a government tax rebate, you may be eligible for a federal income tax credit of up to $7,500.


Nicolle Monico
Updated 16 May 2022
2022 Electric Vehicle Tax Credits: Which EVs & Hybrids Qualify?
Sections on this page
  1. What is the Electric Vehicle Tax Credit?
  2. Does the Electric Car Tax Credit Expire? 
  3. Government Rebates for Electric Vehicles
  4. Government Rebates for Plug-in Hybrid EVs
  5. How to Claim the Electric Vehicle Tax Credit
  6. Are There Tax Credits From States or Other Sources?
  7. Are Electric Vehicles 100% Tax Deductible?
  8. Frequently Asked Questions

If you purchased a new all-electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV) during or after 2010, you may be eligible for a federal income tax credit of up to $7,500, according to the U.S. Department of Energy. The total federal incentive amount depends on the capacity of the battery used to power your car, and state and/or local incentives may also apply. See if your car qualifies for the 2021 electric vehicle tax credit, learn about the eligibility requirements, and how to claim the credit.

What is the Electric Vehicle Tax Credit?

Currently, the plug-in electric drive vehicle tax credit is up to $7,500 for qualifying and eligible vehicles. This is a combination of the base amount of $4,000 plus $3,500, if the battery pack is at least 40 kWh.

There is, of course, fine print for the EV tax incentive:

  • The car must be purchased as a new electric vehicle.
  • Only the original buyer of a qualified electric vehicle or plug-in hybrid vehicle can claim the federal tax credit.
  • The vehicle must not be ethanol, diesel, or fuel-cell.
  • The federal tax credit isn’t applicable if you plan on buying an electric vehicle just to resell it.
  • The vehicle must be primarily used in the U.S.
  • To be eligible for the maximum credit of $7,500, plug-in and battery-powered electric vehicles must be built by qualified manufacturers.
  • Leased vehicles do not qualify for the federal tax credit since the credit is often already factored into the cost of the lease.
  • Battery-powered electric vehicles and plug-in hybrids must have battery packs that are capable of being recharged from an external source and are rated for at least 4 kWh of energy storage.
  • The IRS reserves the right to reject federal EV tax credit claims.

Most plug-in vehicles and hybrids qualify for a federal tax credit between $3,500 and $6,300, though some makes and models qualify for the full $7,500 tax credit (see table below). 

Proposed Plans for the EV Tax Credit 

President Biden is looking to expand the federal tax credit in the coming years and the White House has introduced two bills to expand EV adoption. One of those bills is the Build Back Better Act which would increase the existing federal EV incentive to $12,500.

If passed, individuals could qualify for the additional $5,000 if:

  • Your EV was made in the US with a union workforce ($4,500)
  • At least 50% of the battery components in your EV are made in the US ($500)

Does the Electric Car Tax Credit Expire? 

Yes, the EV federal tax credit expires after a manufacturer sells 200,000 total qualifying vehicles. This is called a "phase out."

Once that happens, the EV tax credit gets cut in half in the second calendar quarter to $3,750 and will continue to lower after an automaker reaches the 200,000-car threshold until the end of the third calendar quarter.

This cycle continues for the next two quarters to $1,875 until the allowable credit is $0 one full year later or four calendar quarters after the phase out begins.

Currently the GMC Hummer EV and Teslas are no longer eligible for the tax credit.

Are Any Other Manufacturers Close to Having the Credit Phase Out?

No, we’re still several years away before the next closest manufacturer reaches the 200,000-vehicle threshold. Nissan is next in line to hit the threshold, and with introduction of the all-electric Ariya SUV last year, its timeline may be accelerated.

Government Rebates for Electric Vehicles

Make and Model Federal Tax Credit
AMP   
GCE Electric Vehicles (2012) $7,500
MLE Electric Vehicle (2012) $7,500
AUDI  
e-tron GT / RS e-tron GT (2022) $7,500
e-tron S $7,500
e-tron Sportback (2020-2022) $7,500
e-tron SUV (2019, 2021-2022) $7,500
Q4 50 e-tron Quattro $7,500
BMW  
i3 Sedan (2014-2021) $7,500
i3s w/60 amp-hr battery (2017) $7,500
21 i3s (2018-2021) $7,500
i4 eDrive40 Gran $7,500
i4 M50 Gran Coupe $7,500
iX xDrive50 $7,500
BYD  
e6 (2012-2017) $7,500
CODA  
CODA Sedan (2010, 2012) $7,500
ELECTRIC LAST MILE SOLUTIONS (ELMS)  
ELMS Urban Delivery (2022) $7,500
ELECTRIC MOBILE CARS $7,500
E36 7 Passenger Wagon (2010) $7,500
E36t Pickup Truck (2010) $7,500
E36v Utility Van (2010) $7,500
FIAT  
500e (2013-2019) $7,500
FORD  
E-Transit (2022) $7,500
Focus EV (2012-2018) $7,500
Mustang Mach-E (all 2021 trims including GT) $7,500
FORD/AZURE DYNAMICS  
Transit Connect EV (2011-2012) $7,500
GENERAL MOTORS (GM)  
Not currently eligible for tax credits –––––
HYUNDAI  
Ioniq Electric (2017-2021) $7,500
Ioniq 5 (2022) $7,500
Kona Electric (2019-2022) $7,500
JAGUAR  
I-Pace First Edition, HSE, SE, S models (2019) $7,500
I-Pace (HSE, SE, S models) $7,500
I-Pace (HSE) $7,500
KANDI  
EX3 (2019-2021) $7,500
K22 (2019-2020) $7,500
K23 (2020-2022) $7,500
K27 (2020-2022) $7,500
KIA  
Niro EV (2019-2022) $7,500
Soul Electric (2015-2020) $7,500
EV6 with 58 kWh & 77.4 kWh (2022) $7,500
MAZDA  
MX-30 (2022) $7,500
MERCEDES-BENZ  
EQS 450+ (2022) $7,500
EQS 580 4matic (2022) $7,500
B-Class EV (2014-2017) $7,500
MINI  
MINI Cooper S E Hardtop 2-Door (2020) $7,500
MINI Cooper S E Hardtop 4-Door (2021-2022)  
MITSUBISHI  
i-MiEV (2012, 2014, 2016, 2017) $7,500
NISSAN  
LEAF (2011-2022) $7,500
POLESTAR  
Polestar 2 (2021) $7,500
Polestar 2 Long Range – Single & Dual Motor (2022) $7,500
PORSCHE  
Taycan (2020-2022) $7,500
RIVIAN  
R1T (2022) $7,500
R1S (2022) $7,500
EDV 700 $7,500
SMART USA  
fortwo electric vehicle (coupe, cabriolet) (2013-2018) $7,500
EQ fortwo Coupe (2019) $7,500
EQ fortwo Cabrio (2019) $7,500
TESLA  
Not currently eligible for tax credits –––––
THINK  
Think City EV (2011) $7,500
TOYOTA  
RAV4 EV (2012-2014) $7,500
VOLKSWAGEN  
e-Golf (2015-2019) $7,500
ID.4 EV (First/Pro/Pro S, AWD Pro S) (2021) $7,500
VOLVO  
C40 Recharge Pure Electric (2022) $7,500
XC40 Recharge Pure Electric P8 AWD (2021-2022) $7,500
WHEEGO  
LiFe $7,500
ZENITH MOTORS  
Electric Van (2014)  
Electric Minibus (2016-2017)  

*Last updated May 16, 2022

Government Rebates for Plug-in Hybrid EVs

Make and Model Federal Tax Credit
AUDI  
A3 e-tron (2016-2018) $4,502
A3 e-tron ultra (2016) $4,502
A7 55 TFSI e Quattro (2021) $6,712
A7 TFSI e Quattro (2022) $7,500
A8L PHEV (2020) $6,712
A8L 60 TFSI e Quattro (2021) $6,712
Q5 PHEV (2020) $6,712
Q5 55 TFSI e Quattro (2021) $6,712
Q5 TFSI e Quattro (2022) $7,500
BENTLEY  
Bentayga Hybrid (2020-2021) $7,500
BMW  
i3 Sedan w/ Range Extender (2014-2021) $7,500
i3s w/ Range Extender (2018-2021) $7,500
i8 (2014-2017) $3,793
i8 Coupe (2019-2020) $5,669
i8 Roadster (2019-2020) $5,669
X3 xDrive30e (2020-2021) $5,836
X5 xDrive40e (2016-2018) $4,668
X5 xDrive45e (2021-2022) $7,500
330e (2016-2018) $4,001
330e/330e xDrive (2021-2022) $5,836
530e/530e xDrive (2018-2019) $4,668
530e/530e xDrive (2020-2022) $5,836
740e (2017) $4,668
740e xDrive (2018-2019) $4,668
745e xDrive (2020-2022) $5,836
CHRYSLER  
Pacifica Plug-In Hybrid (2017-2022) $7,500
FERRARI  
SF90 Stradale (2020-2021) $3,501
FISKER AUTOMOTIVE  
Karma Sedan (2012) $7,500
FORD  
C-Max Energi (2013-2017) $4,007
Fusion Energi (2013-2018) $4,007
Fusion Energi (2019-2020) $4,609
Escape Plug-in Hybrid (2020-2022) $6,843
GENERAL MOTORS (GM)  
Not currently eligible for tax credits –––––
HONDA  
Accord Plug-in Hybrid (2014) $3,626
Clarity Plug-in Hybrid (2018-2021) $7,500
HYUNDAI  
Ioniq Plug-in Hybrid (2018-2022) $4,543
Sonata Plug-in Hybrid (2016-2019) $4,919
Tucson Plug-in Hybrid (2022) $6,587
Santa Fe Plug-in Hybrid (2022) $6,587
JEEP  
Grand Cherokee PHEV (2022) $7,500
Wrangler Unlimited PHEV (2021-2022) $7,500
KARMA  
Revero (2018-2020) $7,500
KIA  
Niro Plug-in Hybrid (2018-2021) $4,543
Optima Plug-in Hybrid (2017-2020) $4,919
Sorento Plug-in Hybrid (2022) $6,587
LAND ROVER  
Range Rover PHEV (HSE) (2019) $7,087
Range Rover PHEV (2020-2021) $6,295
Range Rover PHEV (HSE, Autobiography models) (2022) $6,295
Range Rover Sport PHEV (HSE) $7,087
Range Rover Sport PHEV (HSE) (2022) $6,295
Range Rover Sport PHEV (2020-2022) $6,295
LEXUS  
NX Plug-in Hybrid $7,500
LINCOLN  
Aviator Grand Touring (2020-2022) $6,534
Corsair Reserve Grand Touring PHEV (2021-2022) $6,843
Corsair Grand Touring PHEV (2022) $6,843
MAZDA  
MX-30 (2022) $7,500
McLAREN  
Artura (2022) $4,585
MERCEDES-BENZ  
S550e Plug-in Hybrid (2015-2017) $4,460
GLE550e 4matic (2016-2018) $4,460
GLC350e 4matic (2018-2019) $4,460
GLC350e 4M EQ (2020) $6,462
S560e EQ PHEV (2020) $6,462
C350e (2016-2018) $3,501
MINI  
Mini Cooper S E Countryman ALL4 (2018-2019) $4,001
Mini Cooper S E Countryman ALL4 (2020-2022) $5,002
MITSUBISHI  
Mitsubishi Outlander Plug-in (2018-2020) $5,836
Mitsubishi Outlander Plug-in (2021-2022) $6,587
POLESTAR  
Polestar 1 (2020-2021) $7,500
PORSCHE  
Cayenne S E-Hybrid (2015-2018) $5,336
Cayenne E-Hybrid / Coupe (2019-2020) $6,712
Cayenne Turbo S E-Hybrid / Coupe (2021) $7,500
Cayenne E-Hybrid / Coupe (2021-2022) $7,500
Panamera S E-Hybrid (2014-2016) $4,752
Panamera 4 E-Hybrid (2018) $6,670
Panamera 4 E-Hybrid (2019-2020) $6,712
Panamera 4 E-Hybrid (2021-2022) $7,500
SUBARU  
Crosstrek Hybrid (2019-2022) $4,502
TESLA  
Not currently eligible for tax credits –––––
TOYOTA  
Prius Plug-in Hybrid (2012-2015) $2,500
Prius Prime Plug-in Hybrid (2017-2022) $4,502
RAV4 Prime Plug-in Hybrid (2021-2022) $7,500
VOLVO  
S60 (2019) $5,002
S60 (2020-2022) $5,419
S60 Extended Range (2022) $7,500
S90 (2018-2019) $5,002
S90 (2020-2022) $5,419
S90 Extended Range (2022) $7,500
V60 (2020-2022) $5,419
V60 Extended Range (2022) $7,500
XC60 (2018-2019) $5,002
XC60 (2020-2022) $5,419
XC60 Extended Range (2022) $7,500
XC90 (2016-2017) $4,585
XC90 / XC90 Excellence (2018-2019) $5,002
XC90 (2020-2022) $5,419
XC90 Extended Range (2022) $7,500

*Last updated May 16, 2022

How to Claim the Electric Vehicle Tax Credit

If you qualify for the EV tax credit you must apply for it when filing your taxes for the year you purchased the car. So, if you purchased a car in June of 2021, you’d apply for the credit at the beginning of 2022 when filing your 2021 taxes.

To claim this credit, you’ll need to fill out:

  • IRS Form 8936 for qualifying EVs and PHEVs purchased for personal use
  • IRS Form 3800 for qualifying EVs and PHEVs purchased for business use

This credit can be used toward the alternative minimum tax (AMT) for vehicles purchased in 2010 and later.

Are There Tax Credits From States or Other Sources?

Along with the federal EV tax credit, your state may have additional incentives for purchasing plug-ins and other alternative fuel vehicles. Many states provide at least 10 program options since states can enjoy tax reliefs or rebates for these types of vehicles.

Though incentives vary by state, in most cases, they can be combined for a $10,000 savings on the out-of-pocket cost of purchasing an EV.

For example:

  • In California, drivers can qualify for a $2,000-$4,500 rebate on top of any federal credit received or a $5,000 grant (based on income).
  • In New York, residents can receive either a $500 or $2,000 rebate based on the MSRP of the EV purchased.

Check your state’s local incentives to ensure you’re aware of your options and the additional perks that may be available to you. Each state also has its own process for receiving these incentives, so you’ll want to research which steps you’ll need to take to claim them. 

Are Electric Vehicles 100% Tax Deductible?

Yes, the EV tax credits are 100% tax deductible for individuals and businesses, meaning it will decrease your tax liabilities dollar for dollar. However, if the credit is more than your tax liability, the rest of the credit won't be applied.

So, for example, if you owe $4,000 in taxes before applying the $7,500 credit, your tax bill will be reduced to $0. Unfortunately you won’t receive the extra $3,500 in your bank account afterwards.

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Frequently Asked Questions

How does the electric vehicle tax credit work?

Currently, the plug-in electric drive vehicle tax credit is up to $7,500 for qualifying vehicles. This is a combination of the base amount of $4,000 plus $3,500, if the battery pack is at least 40 kWh. However, there are certain conditions that determine eligibility.

Is the electric vehicle tax credit refundable?

No, electric vehicle tax credits are not refundable, meaning the government won't cut you a check for $7,500 if you qualify. The credit will only reduce your tax liability. 

How do I claim an electric vehicle tax credit?

If you qualify for the electric vehicle tax credit you must apply for it when filing your taxes for the year you purchased the car. To claim this credit, you’ll need to fill out:

  • IRS Form 8936 for qualifying EVs and PHEVs purchased for personal use
  • IRS Form 3800 for qualifying EVs and PHEVs purchased for business use

Which electric vehicles still qualify for the tax credit?

A full list of current qualifying electric vehicles and plug-in hybrid vehicles can be found here.

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