EVs have many advantages, but one thing that puts some car buyers away from them is their high price compared to gas-powered cars. In many cases, however, the cost is alleviated by the federal EV tax credit, which returns up to $7,500 for eligible models. Check out the top three electric cars that still qualify for the full $7,500 federal EV tax credit.
Which electric cars are still eligible for the full $7,500 federal EV tax credit?
The federal EV tax credit was introduced in 2010 as an incentive for people to buy electric cars. However, there are limits for each automaker to the EV tax credit, based on the number of electric vehicles they have sold.
Initially, an automaker can offer the full $7,500 EV tax benefit on first-time electric vehicle sales. As detailed by cars.comAfter selling 200,000 EVs, an automaker can only offer a $3,750 credit, and then the credit is eventually tapered until it becomes ineligible. For example, Tesla and GM have already reached their electric vehicle limit, so none of their electric vehicles qualify for the EV tax credit. The EV tax credit also applies to both fully electric cars (EV) and plug-in hybrids (PHEV).
These are the new electric cars that are still eligible for the full $7,500 federal EV tax credit. Please note that this list is subject to change as more EVs are released and others become ineligible:
- Audi: e-tron (EV), e-tron Sportback (EV), e-tron GT (EV), Q4 50 e-tron Quattro (EV) A7 TFSI e Quattro (PHEV) and Q5 TFSI e Quattro (PHEV)
- Bentley: Bentayga Hybrid (PHEV)
- BMW: i3 (EV), i4 (EV), iX (EV), X5 xDrive45e (PHEV), 330e (PHEV) and 530e (PHEV)
- Chrysler: Pacifica Hybrid (PHEV)
- Ford: Mustang Mach-E (EV), F-150 Lightning (EV), E-Transit (EV) and Escape PHEV
- Honda: Clarity plug-in hybrid (PHEV)
- Hyundai: Ioniq PHEV, Ioniq 5 EV, Kona EV, Santa Fe PHEV, Sonata PHEV and Tucson PHEV
- Jaguar: I-Pace (EV)
- Jeep: Wrangler 4xe (PHEV) and Grand Cherokee 4xe (PHEV)
- Kia: Niro EV (EV), EV6 (EV), Sorento PHEV and Niro PHEV
- Land Rover: Range Rover PHEV and Range Rover Sport PHEV
- Lexus: NX (PHEV)
- Lincoln: Aviator Grand Touring (PHEV), Corsair Reserve Grand Touring PHEV, and Corsair Grand Touring PHEV
- Lucid: Air (EV)
- Mazda: MX-30 (EV)
- McLaren: Artura (PHEV)
- Mercedes Benz: EQS (EV)
- Mini: Cooper SE Hardtop (EV) and Cooper SE Countryman ALL4
- Mitsubishi: Outlander PHEV
- Nissan: Leaf (EV)
- Polestar: 1 (PHEV) and 2 (EV)
- Porsche: Cayenne (PHEV), Panamera (PHEV) and Taycan (EV)
- Rivian: R1T (EV) and R1S (EV)
- Toyota: RAV4 Prime (PHEV) and Prius Prime (PHEV)
- Volkswagen: ID.4 (EV)
- Volvo: S60 Recharge (PHEV), S90 Recharge (PHEV), V60 Recharge (PHEV), XC40 Recharge (EV), XC60 Recharge (PHEV) and XC90 Recharge (PHEV)
As you can see, there are still many electric cars that still qualify for the full $7,500 federal EV tax credit. However, we think the best ones still available are the Ford Mustang Mach-E, the Rivian R1T and the Hyundai Ioniq 5.
The Ford Mustang Mach-E is a great electric car that still qualifies for the full $7,500 federal EV tax credit
One of the best electric cars that still qualifies for the full $7,500 federal EV tax credit is the Ford Mustang Mach-E. The Mustang Mach-E (starting at $43,895) combines styling cues from the Mustang Mach-E with powerful electric motors and the ease of use of an SUV. It has a 0-60mph acceleration time of just 3.5 seconds and a respectable driving range of 315 miles. The Mustang Mach-E also offers a host of useful technologies, such as a 15.5-inch portrait touchscreen and Ford Pro Pilot’s suite of driver assistance technologies.
Get the Rivian R1T with the Federal EV Tax Rebate
Another wonderful electric vehicle that still qualifies for the full $7,500 federal EV tax credit is the Rivian R1T (starting at $67,500). The Rivian R1T received critical acclaim, including the coveted MotorTrend Truck of the Year award. With its quad-motor system, the R1T generates an incredible 835 horsepower and a 0-60 mph time of 3.0 seconds. The R1T’s driving range is 314 miles. Also, the R1T has the agility of a sports sedan for on-road driving, and shines even more when off-road.
Hyundai Ioniq 5 is a reasonably priced electric car that still qualifies for the $7,500 EV tax credit
The third vehicle on our list of the best electric cars that still qualify for the full $7,500 federal EV tax benefit is the Hyundai Ioniq 5. With a starting price of $39,950, the Ioniq 5 is reasonably priced while adding more features. then offers the cheapest electric cars. currently available vehicles. The Ioniq 5 also delivers respectable performance, with a time from 0-100 km/h in 5.2 seconds and a range of 480 km.
Whether it’s the Ford Mustang Mach-E, Rivian R1T, or Hyundai Ioniq 5, there are still some great electric cars that are still eligible for the full $7,500 federal EV tax benefit. However, as automakers are selling more EVs, these vehicles may not be eligible for much longer, especially for Ford and Hyundai. With this in mind, if you want to be sure to save money with the tax credit, you may need to buy one of these vehicles soon.
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