Everyone, even the federal government, is getting in on the automotive industry’s electric vehicle (EV) revolution. To help increase EV adoption rates among consumers, the government is making certain EVs eligible for a $7,500 tax credit. But of all the EVs currently (or will soon be) available, which ones qualify?
While there were originally 14 EVs eligible (we are not counting plugin-hybrids here), January 1, 2024, saw new battery sourcing requirements take effect. These new regulations stipulate that automakers must source or produce most of a battery’s components from North America or a country with a free trade agreement with the United States. It’s a move that has shrunk the list of eligible EVs from 14 to 5, according to a report from Car and Driver.
Here are the 5 EVs currently eligible for the full $7,500 federal tax credit under the new battery sourcing requirements.
The Ford F-150 Lightning
While Ford recently decided to cut down on production for their F-150 Lightning, sales for their electrified truck did increase by 55 percent from 2022 to 2023. So, there is demand for the fledgling electric pickup truck. However, for potential buyers not fond of an iconic, best-selling truck getting the EV treatment, Car and Driver writes that someone could “reasonably” slide into the cab of an F-150 Lighting and feel like they’re sitting in its internal combustion engine-powered predecessor.
The F-150 Lightning has between 230 and 310 miles of driving range. Any heavy-duty towing or hauling someone does with the vehicle will reduce those range numbers by a significant amount. The 2024 F-150 Lightning has a starting price of $57,090.
The Tesla Model 3
While Car and Driver reports that the standard, rear-wheel drive version of the Tesla Model 3 is not eligible for the full $7,500 federal EV tax credit due to some of its battery components, the pricer Model 3 Performance option does meet the requirements to receive the full tax credit. Pricing for the Performance version of the Model 3 starts around $55,000. It can sprint from 0 to 60 in 3.5 seconds. While doing independent range testing, Car and Driver found that the Model 3 performance had a driving range of 315 miles.
The Tesla Model X
The Tesla Model X barely makes the cap to qualify for the federal tax credit. Its hefty $80,000 price tag could prove too much for some buyers. However, according to Car and Driver, those willing to pay that price will receive an electric SUV that generates 670 horsepower and gets around 335 miles of driving range. Those looking for an SUV with stunning straight-line acceleration will be very happy with the Model X.
The Tesla Model Y
The Tesla Model Y, which was the best-selling vehicle of 2023, is eligible for the full $7,500 federal EV tax credit. According to Car and Driver, the Model Y has a starting price of $44,630, making it significantly less expensive than the Model X. It’s also around $10,000 cheaper than the Model 3. The Model Y’s driving range differs depending on which trim someone purchases, but it will be between 279 and 330 miles of range.
The Volkswagen ID.4
In their vehicle review, Car and Driver cites the Volkswagen ID. 4’s starting price is around $41,000, making it the most affordable EV currently eligible for the full $7,500 federal tax credit. They also note that the 2024 ID.4 has a spacious, practical interior. The car even earned an Editor’s Choice Award from the publication. Its driving range is an EPA-estimated 291 miles, and its single electric motor can generate up to 201 horsepower.