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Here’s The EVs That Qualify For The $7,500 Federal Tax Rebate In 2024

Key Takeaways

  • EV prices in the US remain high compared to traditional combustion vehicles, despite some recent decreases.
  • Fewer vehicles qualify for the $7,500 federal tax rebate in 2024, but it’s now easier to access the credit at the time of purchase.
  • Tesla and Rivian have the most vehicles on the list of qualifying EVs for the tax rebate in 2024.


The automotive world is in the middle of a seismic change. Electric cars are becoming ever more prominent on our roads, as manufacturers gradually shift away from combustion to battery power. However, something that is still a concern for many is the price of an electric vehicle. They are not cheap, with the base price for the 2023 Ford Mustang Mach-E $42,995. According to InsideEVs, the current cheapest EV in the United States is the $26,500 Chevrolet Bolt EV.

However, there is a helping hand for those looking at particular electric cars. Investors.com has listed the EVs that currently qualify for the $7,500 federal tax rebate in 2024. There is a downside, however, in that fewer cars and trucks now qualify for the rebate. But it is now also easier to pocket the rebate, as of January 1st, 2024, EV buyers no longer need to wait until they do their taxes to get the credit. If you want to buy an EV, you can ask for that money at the time of purchase. However, it isn’t plain sailing.

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How The EV Rebate Works In 2024

Cars and Trucks That Qualify For The EV Tax Credit In 2024

Make

Model

Year

Credit Amt

MSRP Limit

Chevrolet

Bolt EUV

2022-2023

$7,500

$55,000

Bolt EV

2022-2023

$7,500

$55,000

Chrysler

Pacifica PHEV

2022-2024

$7,500

$80,000

Ford

Escape Plug-in Hybrid

2022-2024

$3,750

$80,000

F-150 Lightning (Extended Range Battery)

2022-2024

$7,500

$80,000

F-150 Lightning (Standard Range Battery)

2022-2024

$7,500

$80,000

F-150 Lightning (Standard Range Battery)

2022-2024

$7,500

$80,000

Jeep

Grand Cherokee PHEV 4xe

2022-2024

$3,750

$80,000

Wrangler PHEV 4xe

2022-2024

$3,750

$80,000

Lincoln

Corsair Grand Touring

2022-2024

$3,750

$80,000

Rivian

R1S Dual Large

2023-2024

$3,750

$80,000

R1S Quad Large

2023-2024

$3,750

$80,000

R1T Dual Large

2023-2024

$3,750

$80,000

R1T Dual Max

2023-2024

$3,750

$80,000

R1T Quad Large

2023-2024

$3,750

$80,000

Tesla

Model 3 Performance

2023-2024

$7,500

$55,000

Model X Long Range

2023-2024

$7,500

$80,000

Model Y All-Wheel Drive

2023-2024

$7,500

$80,000

Model Y Performance

2023-2024

$7,500

$80,000

Model Y Rear-Wheel Drive

2024

$7,500

$80,000

(Sourced from Internal Revenue Service at fueleconomy.gov. Data for the 2024 table last updated Dec. 30, 2023)

According to Investors, if you ask for that rebate, it does not come as cash at the dealerships. Instead, the dealer advances you the credit, by reducing the loan or using it as a down payment. The IRS then pays the dealer back. But on the plus, with interest rates rising, reducing the amount of your car loan right from the word go is a good move. Experian says the average loan amount for new cars is around $40,000, with the average interest rate a little over seven percent.

The rebate will still be welcome for those worried about the cost of an EV, but as Insiders say, the price gap between them and ICE vehicles is closing. Cox Automotive said that the average price for an EV was $53,469 in 2023 with Tesla contributing massively to the drop in EV prices as they slashed costs. Thus, there is the potential that the tax rebate could save you hundreds or thousands of dollars in loan interest. However, the issue is that tightening requirements for EV battery components has massively reduced what vehicles qualify in 2024.

Insiders say that in 2023, you had 34 vehicles to choose from that qualified for the $7,500 rebate. But, in 2024, there are only 20 vehicles so far that qualify. But, manufacturers are working to make modifications and get documentation so their cars can get back on the list.

Volkswagen is one with its ID.4, while Ford is hoping to get the Mustang Mach-E eligible again for the rebate. This is good news for the consumer, especially as while prices between regular and electric cars have narrowed, the gulf is still quite big. EVs have a way to go before more can afford them.

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Rivian And Tesla Dominate The 2024 EV Tax Credit List

White Tesla Model X driven on the road
Tesla

Why People Find It Hard To Buy EVs

  • Electric vehicles are currently priced higher than their ICE counterparts
  • Range anxiety is still a big deal for many consumers
  • EV prices are coming down but slowly
  • More manufacturers are moving towards an electric vehicle future

For 2024, it is currently Tesla and Rivian that have the most vehicles that qualify for the tax rebate. Rivian has five as does Tesla, while Ford is just behind with four vehicles. Chevrolet and Jeep each have two that qualify, while the Lincoln Corsair Grand Touring and Chrysler Pacifica PHEV are also present. Not every vehicle qualifies for the full $7,500 amount, with 11 doing so and the remaining nine qualifying for a $3,750 rebate. The list was last updated by the Internal Revenue Service at fueleconomy.gov on December 30th, 2023.

If the EV you were after isn’t on the list, however, there is a potential way around. Insiders say that used EVs do qualify for the tax rebate. If you buy a qualified used EV or fuel cell vehicle, from a licensed dealer at $25,000 or less, that may be eligible for the used EV tax credit. The credit is 30 percent of the sale price, with a maximum credit of $4,000. The credit is nonrefundable, but it is another carrot dangled by Congress to those pondering an EV. It also adds a boost to the used EV market.

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EV Prices In America Are Still High

2024 Nissan Leaf Front Quarter View
via Nissan

While the tax rebate is a plus, the reality is that EV prices in the United States are still at a high level. According to the Chevy website, the current Chevy Bolt EV has an MSRP of $26,500. The 2024 Nissan Leaf, one of the most well-known electric cars, retails at $28,140 for the latest model year. This is despite the model having had few major improvements over the last few years, barring a design refresh. However, the positive is that the Bolt still qualifies for the tax rebate, whereas the Nissan Leaf does not.

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Tesla Has Tried To Bring Its Vehicle Prices Down

Tesla Model S Red Front Quarter View
via Tesla

Tesla is one of the biggest culprits for high EV prices, but it made moves in 2023 to bring those down. The current, starting price for a rear-wheel drive Model 3 is $35,990. Some of the range however is still incredibly expensive, with the Model S starting at $71,090 for the dual-motor all-wheel drive model at the time of writing. If the government wants the industry to move toward a fully electric future, reducing prices is an effective way of making them more accessible to the general population.

Sources: Insider, Cox Automotive, Chevrolet, Tesla, Internal Revenue Service at fueleconomy.gov



This article was originally published by a www.hotcars.com . Read the Original article here. .

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