sedans and compact cars) can’t have an MSRP above $55,000. Vehicle pricing: vans, SUVs, and pickup trucks must have a manufacturer-suggested retail price (MSRP) at or below $80,000.Production location: final assembly of the vehicle must take place in North America.Various factors roll out over time impacting eligibility for the credit including the car’s purchase price, date of purchase, your income, and where the car and its battery are manufactured.Īs of January 1, 2023, the following criteria apply to new EVs to determine whether or not it qualifies for the federal tax credit: It’s not as straightforward as it used to be with the Qualified Plug-in Electric Drive Motor Vehicle Credit, now known as the Clean Vehicle Credit. The Inflation Reduction Act (IRA) of 2022 changed things a bit regarding the federal tax credit for EVs.
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