The 6 American Car Brands That Won From the New EV Tax Credit

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The 6 American Car Brands That Won From the New EV Tax Credit

Well, the time has finally come as another round of tax credit adjustments has hit the electric vehicle market. First started in 2009 by President Obama, the EV tax credit was enacted to help encourage Americans to purchase electric vehicles with a phaseout period after a manufacturer sells 200,000 vehicles. At the time the tax credit first began, it was done to help offset higher manufacturer production costs of these vehicles which were then passed on to the consumer. 

Fast forward a few years, and as of April 18, 2023, not a ton has changed as EVs have not significantly come down in price due to a myriad of recent factors, including the pandemic and inflation. Now, with a new set of tax changes taking place, it’s likely going to impact the future buying decisions of those looking to make an EV purchase in the near future. 

Let’s take a look and see which American car brands won with the new EV tax credit. 

Why Did the Tax Credit Change in April 2023? 

As indicated above, this isn’t the first time the government has updated the list of cars that qualify for the full $7,500 tax credit. This particular change in 2023 is based on new requirements around the percentages of battery minerals and components that can be sourced from somewhere in North America or from a U.S. trade partner. The idea here is that the U.S. government is trying to incentivize EV manufacturers to focus more on U.S.-based production. 


According to the IRS, a qualified vehicle for the full tax credit must fulfill the following requirements: 

  • Have a battery capacity inside the vehicle of at least 7-kilowatt hours
  • Be made by a qualified manufacturer of electric vehicles 
  • Meet updated critical mineral and battery component requirements that began as of April 18, 2023
  • Have a total vehicle weight of fewer than 14,000 pounds
  • The final assembly of the vehicle must take place in North America
  • The vehicle must be new
  • A seller must report the sale to the IRS including the name of the buyer and taxpayer identification number
  • Vehicle prices cannot exceed more than $80,000 MSRP for SUVs, pickup trucks, or vans
  • Vehicle prices cannot exceed more than $55,000 MSRP for any other type of electric vehicles

It’s important to note that for any vehicles that meet the above criteria, $3,750 of the tax credit is received if the vehicle meets the updated critical minerals requirement. The other $3,750 is only provided if the vehicle meets the separate battery requirements, and if both requirements are met, only then can an EV qualify for the full $7,500 amount. 


Additionally, to qualify, the vehicle must be used solely for private use as well as being primarily used in the United States. Income also plays a role in qualifying as your adjusted gross income must not exceed $300,000 for married couples filing jointly, $225,000 for a head of household, or $150,000 for all other filers. Anyone who exceeds these income requirements from their last filed tax return will not qualify for any tax credits.

Which Brands Won? 

Unfortunately, anyone looking to pick up a Rivian, Volkswagen ID.4, or Nissan Leaf will be disappointed as these vehicles no longer qualify for any tax credit. On the other hand, there are still numerous American manufactured vehicles that still qualify for the full $7,500 amount. 


Cadillac, with just one fully electric vehicle under its name, continued to qualify for the EV credit with the Lyriq SUV. The current MSRP of $58,590 is well below the $80,000 limit for SUVs and even well-equipped at around $77,000 comes in just below the SUV price ceiling. Offering 308 miles of range on a single charge, the Lyriq is already turning eyes with a whopping 33-inch diagonal screen that makes up almost the entirety of the dashboard. 

EVs qualify for tax credit
Cadillac Lyriq In Guangzhou Auto Show 2021.

©By Nissangeniss – Own work, CC BY-SA 4.0 – License


Chevrolet, a staple American brand, walked away a big winner this year with numerous vehicles still qualifying for the full tax credit. As of April 2023, the following vehicles have an MSRP limit of $55,000 (or $80,000) and currently qualify:

  • Blazer: Currently expected to arrive in summer, the Chevy Blazer EV is already listed on Chevy’s website with a starting MSRP of $44,995. Note that there are trim levels that will exceed $55,000 so not every trim level will qualify. Depending on which trim you purchase, you’ll have up to 320 miles of range with a 0-60 speed in 4 seconds. 
  • Bolt EUV: With a starting price of $27,800 MSRP, the Chevy Bolt EUV is expected to continue to qualify for the full credit for some time. Even with all available features, the full price won’t come near the $55,000 ceiling. The Bolt EUV offers an estimated range of up to 247 miles on a single charge. 
  • Bolt EV: Like the Bolt EUV, the Chevy Bolt EV offers a starting MSRP of $26,500 and hits just above $30,000 fully equipped, so no need to worry about price limitations here. What is worth knowing is that the Bolt EV is currently one of the most affordable EVs on the market and becomes even more affordable with the tax credit while still offering 259 miles of range. 
Chevy Bolt EV 2022
The Chevy Bolt EV, Bolt EUV, and Blazer are all available for the credit.

©Jonathan Weiss/Shutterstock.com

Coming Soon

  • Equinox: Arriving in Fall 2023, the Chevy Equinox is expected to have an MSRP of around $30,000 according to the Chevy Equinox landing page. With up to 300 miles of range, Chevy is promised up to 70 miles of range with just 10 minutes of charging. 
  • Silverado: Chevy has yet to announce pricing on the Silverado but the vehicle is expected to have an MSRP starting below $80,000 so at least some trim levels will qualify. Once available, the Silverado EV is expected to have up to 400 miles of range available on a single charge and 10,000 pounds of towing capacity. 
A Silverado EV at a New York car show
The Chevrolet Silverado EV and Equinox EV are soon to qualify.



With the honor of being America’s first and only plug-in hybrid minivan, the Chrysler Pacifica has earned its way to the full $7,500 tax credit. With an MSRP of $50,795 on the standard L trim level, even if you jump to the top-tier Pinnacle trim level, the MSRP is still well below the tax credit ceiling with an MSRP of $60,540. As a plug-in hybrid, the Chrysler Pacifica adds up to 32 miles of all-electric range for an EPA total estimated range of 500 miles when combining both gas and electric range. 

chrysler pacifica suv
The Chrysler Pacifica is a fantastic SUV that qualifies.

©Jonathan Weiss/Shutterstock.com


Based on the new tax credits established, Ford only has one vehicle that qualifies with the F-150 Lightning EV. Unfortunately, the Ford Mustang Mach-E is now only able to offer customers up to $3,750 as it does not meet all of the necessary qualifications for the full rebate. 

Starting with an MSRP of $59,5974 for its base trim level, the F-150 Lightning is well-qualified with three of its four different trim levels. Only its Platinum trim with an MSRP of $98,074 will not qualify for any tax credit. Offering up to 300 miles of range and 10,000 pounds of towing capacity, the F-150 Lightning can go from 15-100% in approximately 10 hours on Ford’s Level 2 home charger. 

F-150 Lightning vs Rivian R1t
The Ford F-150 Lightning is the only Ford EV that qualifies for the tax credit.

©Jonathan Weiss/Shutterstock.com


While not a true electric vehicle, the Lincoln Aviator Grand Touring plug-in hybrid still qualifies for the full $7,500 tax credit. The reason is that the vehicle meets the requirements of having electric capabilities as it can travel up to 21 miles on all electric power. Recharging the Lincoln can be done on either a Level 1 or Level 2 (120V or 240V) charger at home or using a compatible charging station nationwide. The Lincoln starts at around $70,190 MSRP, though it can quickly exceed the $80,000 tax credit ceiling depending on options. 

lincoln aviator grand touring
The Lincoln Aviator Grand Touring is a plug-in hybrid that qualifies!

©Jonathan Weiss/Shutterstock.com


Tesla continued as a winner yesterday, at least in some respects, as it lost one trim level for one of its most popular vehicles. As winners of the updated April 2023 tax credit guidelines, the following cars continue to qualify: 

  • Tesla Model Y: All three trim levels of the Tesla Model Y continue to qualify with the standard, Long Range, and Performance models, all having an MSRP below $80,000. Even if you add all available options including premium exterior and interior paint colors as well as Full Self-Driving Capability, you still will not pass the $80,000 limit. Up to 330 miles of range is available with the Model Y with a 3.5 second 0-60 time. 
  • Tesla Model 3: With the Tesla Model 3, things are a little trickier as only the Performance trim level now qualifies for the full $7,500 credit. This leaves the standard RWD Model 3 only qualifying for $3,750 as part of the federal tax credit. The reasoning for only the partial tax credit is that the batteries for the RWD trim level are made in China, hence not qualifying as part of the American-made rule. The Performance model is still a hit with up to 315 miles of range and a 3.1 second 0-60 time. 
Tesla Model Y
Both the Tesla Model Y and Model 3 qualify for the EV tax credit.


What About Used Electric Vehicles? 

As part of the updated code guidelines, used electric vehicles from all U.S. manufacturers still can qualify for a tax credit that is up to 30% of the total sale, or up to $4,000 in total. However, there are some specific requirements available in order to qualify: 

  • You are not eligible if you are the original owner of the vehicle
  • Not someone who is claimed as a dependent on tax returns
  • Modified adjusted gross income cannot exceed $75K for individuals, $112,500 for heads of household, or $150,000 for married filing jointly. 
  • The vehicle must have a sale price of $25,000 or less
  • The vehicle must also be at least two years earlier than the calendar model year
  • Weigh less than 14,000 pounds
  • Be used primarily in the United States
  • Bought from a qualified electric vehicle dealer
  • Must be an individual purchase and not made under or for a business purpose
  • A used vehicle only qualifies once for a tax credit in its lifetime

Wrap Up

As the U.S. government continues to incentivize EV purchases, there is a good chance this tax credit will change again in the future. For now, anyone on the fence about purchasing any of the above electric vehicles would be best served to do so in the near future to take full advantage of the $7,500 tax credit.

Breaking EV News

June 9, 2023 — At the start of 2024, owners of Ford and General Motors (GM) EVs will be able to use an adaptor to charge at 12,000 of Tesla’s charging stations. And, starting in 2025, both manufacturers will feature Tesla’s North American Charging Standard connector.

GM’s CEO Mary Barra said, “Not only will [this collaboration] help make the transition to electric vehicles more seamless for our customers, but it could help move the industry toward a single North American charging standard.”

The 6 American Car Brands That Won From the New EV Tax Credit FAQs (Frequently Asked Questions) 

Why is the tax credit amount changing for 2023?

As part of the Inflation Reduction Act passed by Congress in 2022, a new set of rule requirements were enacted to determine which vehicles qualify for EV credits which took effect on April 18, 2023.

What cars no longer qualify for any tax credit?

Electric vehicles like the Tesla Model 3 Standard Range RWD, Ford Mustang Mach-E, Nissan Leaf, Jeep Wrangler 4Xe, Rivian R1S, Rivian R1T, and the Volkswagen ID.4 no longer qualify. 

Will you automatically get the full tax credit?

In theory, if you purchase one of the above cars that meet all of the requirements for the tax credit, then there is no reason why you should not get the full amount. 

How do you claim the tax credit?

The dealership from where you purchase should be able to assist with this by providing a letter of certification. From there, you fill out the appropriate tax forms from the IRS and submit as part of your yearly tax filing. 

Will electric cars get less expensive in the future?

This is hard to say as most EV manufacturers want to continue making profits and costs are being passed down to consumers. Hopefully, in the future, EVs will get less expensive or less expensive models will be released. 

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