The federal government's $7,500 tax break for electric vehicle purchases has never been easier to claim. But let's address the elephant in the room: There’s plenty of uncertainty on whether President Donald Trump can (or will) permanently repeal these credits.
“It’s still active now,” said Peter Glenn, founder and co-CEO of EV Life, an EV finance platform. “It will take an act of Congress, not an executive order,” to revoke it.
While it lasts, the EV discount is substantial, but it applies only to electric vehicles that meet certain requirements, mostly around the sourcing and manufacturing of battery materials.
The list of eligible EVs also shrank a bit at the start of 2025 as the requirements got tighter. But experts are optimistic that the list of vehicles will grow as US automakers onshore more car and battery manufacturing.
"I do expect that this [list] will increase over time," said Kate Whitefoot, an associate professor of engineering and public policy at Carnegie Mellon University. That's because it's going to take time for automakers to set up the domestic battery and mineral supply chains necessary to meet the tax credit requirements -- which are still relatively new, she said.
Some experts believe you shouldn't wait for the list to grow. If you want an EV right now, there's no need to wait for more vehicles to qualify, Glenn said. "The electric vehicle is like a savings account on wheels," he said, and the economics are already good for buyers in the market right now.
So how do you know which EVs are eligible for the credit, and which aren't?
Thankfully, the government maintains a running list, which we break down for you below. But it's still important to understand the "why" behind the rules. Here's a rundown of how the tax credit works and what to expect.
How the EV tax credit works
Up until 2023, the EV tax credit worked like most others: You would purchase the EV at full price, then apply for the $7,500 credit after the fact and receive the discount when you filed your taxes. That meant customers had to be willing to front the full price of an EV and get a rebate months later.
But thanks to a rule change in 2024, participating car dealers can now apply the discount at the point of sale, meaning the customer sees a reduction in the sticker price and there's no need for you to file paperwork later.
New electric vehicles can qualify for a $7,500 credit, while used vehicles can qualify for a similar tax credit of up to $4,000.
These EVs qualify for the federal tax credit right now
The qualifying rules became more strict in 2025, which is why the list of eligible EVs got smaller. Federal rules dictate a few key thresholds that EVs must meet to qualify for the credit. Some of them are typical income and price limits, but others relate to where EV batteries are manufactured and where the materials come from.
Here is the most current list of qualifying EVs for purchases made after Jan.1, 2025, and before Jan. 1, 2026.
EVs that qualify for the federal tax credit
| EV Make, Model (Year) | Tax credit amount | MSRP limit |
|---|---|---|
| Acura, ZDX (2024-2025) | $7,500 | $80,000 |
| Cadillac, LYRIQ (2024-2025) | $7,500 | $80,000 |
| Cadillac, OPTIQ (2025) | $7,500 | $80,000 |
| Chevrolet, Blazer EV (2024-2025) | $7,500 | $80,000 |
| Chevrolet, Equinox EV (2024-2025) | $7,500 | $80,000 |
| Chevrolet, Silverado EV LT (2025) | $7,500 | $80,000 |
| Chrysler, Pacifica PHEV (2024-2025) | $7,500 | $80,000 |
| Ford, F-150 Lightning, FLASH trim (2024-2025) | $7,500 | $80,000 |
| Ford, F-150 Lightning, LARIAT trim (2023-2025) | $7,500 | $80,000 |
| Ford, F-150 Lightning, XLT trim (2023-2025) | $7,500 | $80,000 |
| Honda, Prologue (2024-2025) | $7,500 | $80,000 |
| Jeep, Wagoneer S (2025) | $7,500 | $80,000 |
| Kia, EV6 (2025) | $7,500 | $80,000 |
| Kia, EV9 (2026) | $7,500 | $80,000 |
| Tesla, Cybertruck Dual Motor (2025) | $7,500 | $80,000 |
| Tesla, Cybertruck Single Motor (2025) | $7,500 | $80,000 |
| Tesla, Model 3 Long Range All-Wheel Drive (2025) | $7,500 | $55,000 |
| Tesla, Model 3 Long Range Rear-Wheel Drive (2025) | $7,500 | $55,000 |
| Tesla, Model 3 Performance (2025) | $7,500 | $55,000 |
| Tesla, Model X All-Wheel Drive (2025) | $7,500 | $80,000 |
| Tesla, Model Y Long Range All-Wheel Drive (2025) | $7,500 | $80,000 |
| Tesla, Model Y Long Range Rear-Wheel Drive (2025) | $7,500 | $80,000 |
| Tesla, Model Y Performance (2025) | $7,500 | $80,000 |
*Source: Fueleconomy.gov; Data accurate as of Feb. 6, 2025.
The 2024 Honda Prologue qualifies for the $7,500 federal EV tax credit.
2025 EV tax credit requirements
Why aren't all EVs eligible for the tax credit?
The idea behind these requirements is twofold: To make sure the credits are going to people who need them and to incentivize domestic manufacturing of electric vehicles.
MSRP
The tax credit has two caps on manufacturer's suggested retail price , essentially the sticker price of the car. The limit is $80,000 for vans, sport utility vehicles and pickup trucks, and $55,000 for all other EVs. To claim the tax credit, the total price of the vehicle has to be less than those thresholds.
Critical minerals and battery component
Here's where the requirements get tricky. To qualify for the credit, at least 60% of the "critical minerals" in the EV's battery must have been extracted or processed in the US or a country that has a free trade agreement with the US. And at least 60% of the EV's battery components must have been manufactured or assembled in the US or a country with a free trade agreement with the US.
Income limits
The credit is available only to those who make less than a certain amount in "adjusted gross income." For married couples, the limit is $300,000 per year. For heads of households, the cap is $225,000. And for all others, the limit is $150,000 in annual income.
Assembly location
Any EVs that are eligible for the federal discount must "undergo final assembly" in North America (the US, Mexico or Canada).
How will Trump’s policies affect the EV tax credit?
Despite the impression given by Trump's many executive orders, the EV tax credit is part of the Inflation Reduction Act, which was created through an act of Congress and would require an act of Congress to repeal.
Glenn says the Trump administration will most likely try to get Congress to eliminate the EV tax credit, but for now it is still in place.
While Trump has been antagonistic toward EVs, it’s worth noting who benefits from the EV tax credit. For one: Trump ally Elon Musk’s Tesla, which has the most models of any brand eligible for the discount. “Telsa wins more than any other automaker,” Glenn said.
How to claim the EV tax credit in 2024
Because dealerships are now able to offer the tax credit as a discount off the sticker price, there aren't many steps for the customer after a vehicle purchase.
Here's what to know before you buy if you want to use the 2025 EV tax credit.
- Not all dealerships offer the instant tax credit upfront. Make sure to check with them before making a purchase, Whitefoot said.
- According to Fueleconomy.gov, the official government source for fuel economy information, your auto dealership needs to confirm that your specific EV model qualifies for the tax credit and is responsible for providing you with an IRS time-of-sale report.
- Double check that your income falls beneath the limits -- because the dealership isn't going to check for you. "There are some conditions there. A dealer can give you this, but the customer actually needs to understand" their income, Glenn said. Otherwise, the IRS could claw back the tax credit if you’re above the income limit.
- Don't forget about state-level EV rebates, which could be stacked on top of the federal credit. Check with your state's energy department for details.
