We’ve tested versions of many of the models click through the model names below for road tests and ratings. In this article, Consumer Reports has details on how to maximize your savings, including using tools such as our Electric Vehicle Savings Finder to see which cars qualify.

None of these regulations apply to leased EVs and PHEVs, so potential buyers interested in an electric car or plug-in hybrid that isn’t eligible for a tax credit may want to consider leasing instead of purchasing. “The requirements were going to be difficult for automakers to meet immediately,” he says, “but we expect this list to grow quite a bit in the coming months and years as automakers now have clear targets to hit to become eligible, and are working hard to qualify.”

These requirements will get stricter every year.Ĭhris Harto, CR’s senior policy analyst for transportation and energy, says it’s no surprise that fewer cars qualify for a credit. free-trade agreement partner, or they must have been made from materials recycled in North America. To get the second $3,750, at least 40 percent of critical minerals used in the battery must be extracted or processed in the U.S. To qualify for the first $3,750, at least 50 percent of a vehicle’s battery components must be produced or assembled in North America. Vehicles must be manufactured in North America and have an MSRP below $80,000 for an SUV or $55,000 for a sedan, wagon, or hatchback.īeginning April 18, the full tax credit will be divided into two parts. The provisions of the act went into effect in phases. Designed to address climate change, healthcare, and taxes, the legislation also modifies how tax credits for certain new EV purchases are calculated. The changes are part of the Inflation Reduction Act of 2022.

Plug in electric hybrid vehicles