- The new list of PHEVs and EVs that qualify for the federal tax credit includes 18 vehicles.
- Among the new entries for 2025 are the Tesla Cybertruck, and the Hyundai Ioniq 9.
- Models like the VW ID.4, the Nissan Leaf, and the Rivian R1T/R1S are no longer eligible.
It’s a new year, and with it comes a fresh round of updates to the federal EV tax credit program, courtesy of the U.S. Department of Energy and the EPA. This year’s headline? The Tesla Cybertruck has finally made the list of eligible vehicles. But don’t start celebrating just yet. The incoming Trump Administration has signaled it might pull the plug on these incentives altogether. Unsurprisingly, this looming uncertainty has sparked a mad dash among buyers eager to lock in their $7,500 credits before the opportunity slips away.
More: Tesla’s Global Sales Fall For The First Time In Over A Decade
The updated list for 2025 includes 18 eligible EV and PHEV models, a drop from last year’s 22. To qualify for the federal tax credit, vehicles must be manufactured in North America, have a battery capacity of at least 7 kWh, and meet specific price caps: $55,000 for cars and $80,000 for trucks and SUVs. These criteria mean that not every shiny new EV on the block gets a ticket to the tax credit party.
Tesla Leads the Pack (Mostly)
Among Tesla’s lineup, the Cybertruck’s dual-motor variant squeaks under the $80,000 limit with a starting price of $79,990, alongside a more affordable single-motor version arriving later this year. However, the top-tier Cyberbeast isn’t invited to the tax-credit club due to its MSRP of $99,990. Other eligible Teslas include the Long Range and Performance trims of the Model 3 and Model Y, as well as the Model X AWD.
Who Else Made the Cut?
Beyond Tesla, a few other notable entries have joined the roster. New to the list are the 2025 Genesis Electrified GV70, US-built 2025 Hyundai Ioniq 5 and Ioniq 9, and the facelifted 2026 Kia EV6 and EV9. Cybertruck competitors like the Ford F-150 Lightning (Flash, Lariat, and XLT trims) and Chevrolet Silverado EV (LT trim) are also included.
GM’s presence is strong, with offerings like the Cadillac Lyriq, Chevrolet Blazer EV, and Equinox EV making the list, along with the Acura ZDX and Honda Prologue, both built on GM platforms.
For plug-in hybrids, the list is short as just one model made the cut: the aging Chrysler Pacifica PHEV. It’s a far cry from the EV-heavy lineup that dominates the program today.
Who Missed Out?
Several previously eligible models have fallen off this year’s list, including the Volkswagen ID.4, Nissan Leaf, and Rivian’s R1T and R1S. Buyers eyeing these vehicles will need to dig a little deeper into their wallets, as the $7,500 incentive is no longer on the table for them.
Looking ahead, the federal EV tax credit program that was introduced in 2022 as part of Biden’s Inflation Reduction Act, faces an uncertain future. With Donald Trump’s presidential inauguration set for January 20, 2025, it’s unclear whether the program will survive or be significantly scaled back under the new administration.
QUALIFYING MODELS
FAQ: What You Need to Know About the EV Tax Credit
Who Can Qualify for the Credit?
The credit is available to individuals and businesses. To qualify:
- You must buy the vehicle for personal or business use, not for resale.
- The vehicle must primarily be used in the U.S.
Are There Income Limits?
Yes, your modified adjusted gross income (AGI) must be below these thresholds:
- $300,000 for married couples filing jointly.
- $225,000 for heads of households.
- $150,000 for single filers or others.
You can use your AGI from either the year you take delivery of the vehicle or the previous year, whichever is lower. Your modified AGI is calculated by taking the amount from line 11 of your Form 1040 and adding any foreign earned income (line 45 or 50 of Form 2555) or income excluded from gross income due to sources in Puerto Rico or American Samoa.
What Vehicles Qualify?
To qualify for the credit, vehicles must:
- Have a battery capacity of at least 7 kWh.
- Weigh under 14,000 pounds (gross vehicle weight rating).
- Be made by a qualified manufacturer (except fuel cell vehicles, which don’t require this).
- Be new, meaning it hasn’t been registered, titled, or previously used.
- Meet final assembly requirements in North America (use the VIN Decoder tool on the Department of Energy’s website to verify).
For vehicles bought after January 1, 2024, the dealer must be registered with the IRS Energy Credits Online system.
How Much is the Credit Worth?
- Up to $7,500 for vehicles meeting both the critical minerals and battery component sourcing requirements.
- Up to $3,750 for vehicles meeting only one of these requirements.
- Vehicles meeting neither requirement won’t qualify for any credit.
What About Price Limits?
The vehicle’s manufacturer suggested retail price (MSRP) must not exceed:
- $80,000 for vans, SUVs, and pickup trucks.
- $55,000 for all other vehicles.
MSRP includes the base price and manufacturer-installed options but excludes destination charges, dealer add-ons, taxes, and fees.
How Do I Claim the Credit?
The credit is nonrefundable, meaning it only reduces the taxes you owe, and you won’t get a refund if the credit exceeds your tax liability. Starting in 2024, you can transfer the credit to the dealer at purchase time to reduce the vehicle’s upfront cost.
How Can I Check If a Vehicle Qualifies?
Check the vehicle window sticker for details like battery capacity, weight, and final assembly location. You can also use the VIN Decoder tool on the Department of Energy’s website or ask your dealer for verification of the vehicle’s eligibility and credit amount.