The future is looking electric, and vehicles are at the forefront of the revolution. Indeed, 2024 is the year fora whole fleet of new EV models. And while we love electric cars for their smooth rides, fast acceleration, and energy efficiency, the real winner is the environment. EVs have the potential to reduce global carbon emissions, and to aid in the transition, the US government offers incentives with substantial tax breaks. Called theClean Vehicle Credit, it’s as high as $7,500.
You may also be able to apply the credit to the final cost of your vehicle through the dealership. It’s like a discount subsidized by the government, and it circumnavigates the tax return snafu.But not every EV is eligible.
Determining if your EV qualifies is tricky. For one, there are several types of EVs: all-electric, plug-in hybrids, and fuel-cell models. Each type has its own qualifications and credit amounts. To complicate matters further, your eligibility depends on the year the vehicle was purchased, among other prerequisites.
Before we start: The BMW 2024 grand April offer
Before I get into the general breakdown of electric vehicle tax cuts, I want to highlight a get-it-while-it’s-hot rebate going on with 2024 BMW EVs. It’s an obvious incentive for people to buy the new 2024 BMW EVs, but there are no tricks. The 2024 models are eligible for a $5,000 rebate, an offer that lasts until April 30th. After that date, we’ll see what happens. The 2024 BMW i7 sedan and iX SUV are also on the discount rack, with $7,500 rebates available. Whichever you choose, you can easily score a rebate by leasing your new car.
And if you already own a BMW, you might still be eligible for a discount. BMW is offering a $1,000 “loyalty discount” for lessees and owners of the i4, $1,500 for the i5, and a whopping $3,000 for the i7. If you fall into any of those categories, it’s worth looking into.
Therefore, if you lease, own, or are looking to buy a 2024 BMW EV, check with your dealership for rebates, offers, and discounts. You can get some serious cash back simply through the limited-time promotion, so don’t miss out.
Which EVs qualify for a tax rebate: Take advantage of the times
The eligible EVs are broken down into three types:
To help folks navigate the bureaucratic jargon, I’ve simplified the details to help you find out if your EV qualifies for the credit. Whether you’re purchasing a new EV or trying to get the Clean Vehicle Credit on one you already bought, this guide should help. I’ve also compiled a complete list of eligible vehicle models for the first type – new EVs purchased in 2023 or after.
The prerequisites for the Clean Vehicle Credit
There are a few obstacles to overcome for an EV to be eligible.
Purchased your EV from a dealership, not a private seller.
According to the IRS, “at the time of sale, a seller must give you information about your vehicle’s qualifications. Sellers must also register online… If they don’t, your vehicle won’t be eligible.”
If you’re looking to buy, make sure to inquire at the dealership about the Clean Vehicle Credit. They’ll most likely provide you with all the information you need and help you through the process of applying.
Final assembly of your EV must have occurred in North America.
Otherwise, your EV isn’t eligible for the Clean Vehicle Credit. According tothe US Department of Energy (DOE), “to be eligible… a vehicle must have undergone final assembly in North America. In general, North America includes the United States and Puerto Rico, Canada, and Mexico.”
If you don’t know where your EV was assembled, don’t worry. The DOE has aVehicle Identification Number (VIN) lookup toolto find out where your vehicle was last assembled.
The VIN is the code stamped on your car’s dashboard, and it’s 17 characters long. Enter your VIN code into the lookup tool that we linked to above, and it will tell you where your car was assembled.
Only pre-owned EVs purchased in or after 2023 and brand-new EVs are eligible
This is important for those looking to buy a pre-owned EV, since the law recently changed to exclude pre-owned EVs purchased before 2023.
Your adjusted gross income can’t be greater than a certain amount
If your EV fulfills the above prerequisites, you can proceed with our guide.
Bought a new EV in 2023 or later? Check this list to see if you qualify.
If you purchased an EV in 2023 or after, you may be eligible for the Clean Vehicle Credit. This list contains the vehicle models that meet the above prerequisites as well as their maximum credit amounts. However, a spot on this list isn’t a guarantee. The dealership is responsible for confirming the eligibility and providing a time-of-sale report.
New EVs placed into service in the year 2024
Model Year
Credit Amount
MSRP Limit
Q5 PHEV 55 TFSI e quattro
Q5 S Line 55 TFSI e quattro
Pacifica PHEV
Escape Plug-in Hybrid
F-150 Lightning (Extended Range Battery)
F-150 Lightning (Standard Range Battery)
Grand Cherokee PHEV 4xe
Wrangler PHEV 4xe
Corsair Grand Touring
Leaf SV Plus
R1S Dual Large
R1S Quad Large
R1T Dual Large
R1T Dual Max
R1T Quad Large
Model 3 Performance
Model X Long Range
Model Y All-Wheel Drive
Model Y Performance
Model Y Rear-Wheel Drive
Volkswagen
ID.4 AWD Pro
ID.4 AWD Pro S
ID.4 AWD Pro S Plus
ID.4 Pro S
ID.4 Pro S Plus
ID.4 Standard
Source:US Department of Energy(current as of June 15, 2025).
New EVs placed into service between January 1st, 2023 and August 03, 2025
X5 xDrive50e
Mustang Mach-E (Extended Range Battery)
Mustang Mach-E (Standard Range Battery)
Aviator Grand Touring
Cybertruck All-Wheel Drive
Model 3 Long Range All-Wheel Drive
Model 3 Standard Range Rear Wheel Drive
Model Y Long Range All-Wheel Drive
Source:US Department of Energy(current as of August 25, 2025)
New EVs placed into service between April 18th, 2023 and December 31st, 2023
Q5 TFSI e Quattro (PHEV)
X5 xDrive45e
Silverado EV
Escape Plug-In Hybrid
F-150 Lightning
Mustang Mach-E
Electrified GV70
Grand Cherokee 4xe
Wrangler 4xe
Mercedes-Benz
EQE 350 SUV
Leaf S Plus
Leaf SL Plus
Model 3 Long Range
Model 3 RWD
Model Y Long Range
S60 (PHEV)
S60 Extended Range
S60 T8 Recharge (Extended Range)
If my EV qualifies for a tax credit, how do I apply for it?
If your EV qualifies, applying for the credit is as easy as completing and attaching Form 8936 (Qualified Plug-In Electric Drive Motor Vehicle Credit) to your yearly tax returns. You can download the form and its instructions fromthe IRS’s website here. If you use a tax attorney or tax filing service, ensure to request this form when submitting your documents.
We strongly recommend ensuring that you qualify for the Clean Vehicle Credit before proceeding by using the above resources or navigating theUS DOE’s website on the subject. Otherwise, if you don’t qualify, you’ll be wasting your time (and potentially money paid to a tax attorney).
You may also be able to apply the credit directly to the purchase through the dealership. This basically works as a credit transfer in which the dealership assumes the credit. To go this route, you’ll have to coordinate the transfer with the dealership. In either case, Form 8936 is still required.
Bought a new EVbefore2023? You still might qualify.
If you purchased a new EV from a dealership before 2023 and never applied for the Clean Vehicle Credit, you might still have a chance. This category is divided into two time periods:
EVs purchased between August 17th, 2022 and December 31st, 2022
EVs purchased before August 17th, 2022
The Clean Vehicle Credit only works for the tax return of the same year you bought the car. In other words, you can’t apply for it on your 2024 tax returns if you purchased your EV in 2022. Instead, you’ll have to amend your tax return of the same year as your EV purchase in order to attachForm 8936to the corresponding year.
