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2024 Electric Vehicles Qualifying for the $7,500 Federal Tax Credit
The Complete 2025 Guide to Electric Vehicle Tax Credits: Which Models Qualify for $7,500?
Key Update: As of January 2024, EV buyers can now receive their tax credit as an immediate discount at purchase rather than waiting to file taxes. The 2025 eligibility list has shrunk due to stricter battery sourcing requirements, but several popular models still qualify.
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Understanding the 2025 EV Tax Credit Changes
The federal electric vehicle tax credit program underwent significant modifications in 2024 that continue to impact 2025 vehicle eligibility. These changes stem from the Inflation Reduction Act's provisions designed to:
- Encourage domestic battery production and mineral sourcing
- Limit dependence on foreign supply chains (particularly China)
- Make credits more accessible through point-of-sale discounts
- Implement gradual annual increases in sourcing requirements
For consumers, this means the list of qualifying vehicles changes frequently as automakers adapt their supply chains. The 2025 requirements are particularly strict, eliminating about 60% of previously eligible models.
Current List of 2025-Eligible Electric Vehicles
The following EVs and plug-in hybrids meet the 2025 battery sourcing requirements and qualify for either $3,750 or $7,500 in tax credits. Prices reflect the maximum MSRP allowed for credit eligibility:
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| Vehicle | Credit Amount | Price Cap |
|---|---|---|
| 2024-25 Acura ZDX EV | $7,500 | $80,000 |
| 2024-26 Cadillac Lyriq EV | $7,500 | $80,000 |
| 2025-26 Cadillac Optiq EV | $7,500 | $80,000 |
| 2024-26 Chevrolet Blazer EV | $7,500 | $80,000 |
| 2024-26 Chevrolet Equinox EV | $7,500 | $80,000 |
| 2025 Tesla Model Y | $7,500 | $80,000 |
| 2025 Tesla Model 3 | $7,500 | $55,000 |
Note: Always verify individual vehicle eligibility using the DOE's VIN check tool before purchase.
How the EV Tax Credit Works in 2025
The revamped clean vehicle credit consists of two equally important components:
1. Battery Component Requirements ($3,750)
To qualify for this portion, vehicles must meet increasing percentages of battery components manufactured or assembled in North America:
- 2024: 60% minimum
- 2025: 65% minimum
- 2026: 70% minimum
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2. Critical Minerals Requirements ($3,750)
This portion requires specific percentages of battery minerals extracted or processed in the U.S. or free-trade partner countries:
- 2024: 50% minimum
- 2025: 60% minimum
- 2026: 70% minimum
Vehicles meeting both requirements qualify for the full $7,500 credit. Those meeting only one receive $3,750.
2025 Buyer Eligibility Requirements
To claim the EV tax credit, buyers must meet these criteria:
Income Limits
- Single filers: $150,000 maximum AGI
- Head of household: $225,000 maximum AGI
- Joint filers: $300,000 maximum AGI
Vehicle Requirements
- Final assembly in North America
- Battery capacity ≥ 7 kWh
- MSRP ≤ $55,000 (cars) or $80,000 (SUVs/trucks/vans)
- For used EVs: Price ≤ $25,000 and model year at least 2 years old
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How to Claim Your 2025 EV Tax Credit
Buyers now have two options to receive their credit:
1. Point-of-Sale Discount (New for 2024-2025)
The most significant change allows buyers to:
- Transfer the credit to an IRS-registered dealer at purchase
- Receive the amount as an immediate price reduction
- No longer need sufficient tax liability to benefit
2. Traditional Tax Filing Method
Buyers can still:
- Claim the credit when filing annual taxes using Form 8936
- Credit remains non-refundable (limited by tax liability)
- Must wait until tax season to receive benefit
Special Considerations for 2025
Used EV Credit ($4,000 Maximum)
The used clean vehicle credit offers:
- 30% of sale price or $4,000 (whichever is lower)
- Lower income limits ($75k single, $150k joint)
- Now available as point-of-sale discount
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Leasing Loophole
Leased EVs qualify under commercial clean vehicle credits with:
- No income restrictions for lessees
- No MSRP caps
- More vehicle options (not subject to battery sourcing rules)
Future of the EV Tax Credit
While the current program extends through 2032, several factors could influence future availability:
- Potential legislative changes under new administrations
- Increasing battery sourcing requirements (80% by 2027)
- Growing domestic battery production capacity
- Possible expansion to include more vehicle types
For the most current information, check IRS Clean Vehicle Credits and DOE's tax credit page.
Maximizing Your EV Savings
Smart shoppers combine the federal credit with:
- State and local EV incentives (up to $5,000 additional in some states)
- Utility company rebates for home charging equipment
- Dealer incentives and manufacturer discounts
- Potential fuel and maintenance savings over time
Use MotorVero's EV Incentive Finder to discover all available savings in your area.
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Last Updated On Jul, 17-2025