Here are all the used EVs that qualify for the new $4,000 tax credit

January 1, 2023 marked the dawn of another year for the world, but in the realm of EVs, more specifically purchases made by US consumers, the date kicked off a fresh start of new tax credits for vehicles both new and used. While much of the dust is still settling on the Capitol as it works to implement new qualifying terms for tax credits, we do have some information about what used EVs will and will not qualify. Here’s what we know so far.

A used EV might be the way to go in 2023

Although the $7,500 federal tax credit has been extended for new EV purchases under revised qualifying terms, those current requirements leave a very limited number of current EVs that qualify.

Many automakers are already pivoting their business strategies to move EV and battery assembly to US soil to once again qualify, but it will take time to establish those facilities and get them up and running.

In the meantime, it might be worth considering a used EV in order to take advantage of the revamped federal tax credit up to $4,000. Here’s how it works.

How the current tax credit works for used EVs

In a perfect world for consumers, any and all used EV purchases would qualify for tax credits from the US government, but that’s unfortunately not the case. As part of revised terms in the Inflation Reduction Act signed by President Biden, federal tax credits have been extended and include revamped benefits for used EV purchases. As long as they fit certain criteria. Per the IRS:

Beginning January 1, 2023, if you buy a qualified previously owned electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a previously owned clean vehicle tax credit under the Internal Revenue Code Section 25E.

Used EVs no see revised terms that offer a credit equal to 30% percent of the sale price (up to $4,000). That should help consumers like yourselves get some change back in your pocket at the end of the fiscal year. As long as you stick to these terms as outlined by the IRS.

To qualify as a customer, you must:

  • Be an individual who bought the vehicle for use and not for resale
  • Must be an individual (no businesses)
  • Not be the original owner
  • Not be claimed as a dependent on another person’s tax return
  • Have not claimed another used clean vehicle credit in the 3 years before the EV purchase date
  • Modified adjusted gross income must not exceed $75k for individuals, $112,500 for heads of households, and $150k for joint returns

Additionally, in order for a used EV to qualify for federal tax credits, it must:

  • Have a sale price of $25,000 or less
  • Have a model year at least 2 years earlier than the calendar year when you buy it
    • For example, a vehicle purchased in 2023 would need a model year of 2021 or older
  • Not have already been transferred after August 16, 2022, to a qualified buyer
  • Have a gross vehicle weight rating of less than 14,000 pounds
  • Be an eligible FCV or plug-in EV with a battery capacity of at least 7 kilowatt hours (kWh)
  • Be for use primarily in the United States
  • Purchased from a certified dealer.
    • For qualified used EVs, the dealer reports required information to you at the time of sale and to the IRS
  • A used vehicle qualifies for tax credit only once in its lifetime
Used EV tax credit:
A 2020 Nissan LEAF SV Plus. Definitely worthy of used EV tax credits

Here are all the Used EVs that qualify for tax credits

As promised, here is the current list of used EVs that qualify for tax credits in the US, per the IRS, separated by all-electric BEVs and plug-in hybrids (PHEVs).

It’s important to note that this is not the end all, be all list of used EVs that qualify for tax credits in the US. Once again, per the IRS.

Manufacturers of the vehicles listed below have provided appropriate information and have indicated that the vehicles are eligible for the credit provided and other requirements are met.

This is simply the list provided by the government which will be continuously updated by both them and us. Additionally, some of these EVs especially are 2020 or 2021 models, and it will be almost impossible to find them on sale below $25k. If you somehow luck out, more power to you, because you may qualify for additional savings.

As always, we recommend speaking with a tax professional and EV dealer directly in order to ensure what you and your new vehicle qualify for. Without further adieu, here are the all-electric models that currently qualify.

All-electric models:

Make/Model:/Year(s) Full Tax Credit:
Audi:
Audi e-tron (2019, 2021) $4,000
Audi e-tron Sportback (2020-2021) $4,000
BMW:
i3 (with or without range extender) (2014-2021) $4,000
i3 (60Ah) (2017) $4,000
i3s (with or without range extender) (2018-2021) $4,000
Fiat:
500e (2013-2019) $4,000
FORD MOTOR COMPANY:
Focus Electric (2012-2018) $4,000
Mustang Mach-E (2021) $4,000
GENERAL MOTORS (GM) TBD
HYUNDAI:
Ioniq BEV (2017-2019) $4,000
Kona Electric (2019-2021) $4,000
JAGUAR: TBD
Kia: TBD
LAND ROVER TBD
MAZDA: TBD
MERCEDES-BENZ
B250e (B-Class) (2014-2017) $4,000
MINI:
Cooper SE Hardtop (2020-2021) $4,000
MITSUBISHI: TBD
i-MiEV (2012-2014, 2016-2017) $4,000
NISSAN:
LEAF S (2013-2021) $4,000
LEAF S Plus (2019-2021) $4,000
LEAF SL (2011-2019) $4,000
LEAF SL Plus (2019-2021) $4,000
LEAF SV (2011-2021) $4,000
LEAF SV Plus (2019-2021) $4,000
smart:
Coupe EV (2013-2018) $4,000
EQ Fortwo Coupe (2019) $4,000
Cabrio EV (2013-2016, 2017-2018) $4,000
EQ Fortwo Cabrio (2019) $4,000
SUBARU: TBD
TESLA: TBD
TOYOTA:
RAV4 EV (2012-2014) $4,000
VOLKSWAGEN:
e-Golf (2015-2019) $4,000
ID.4 First Edition, Pro, Pro S, AWD Pro, AWD Pro S (2021) $4,000
VOLVO:
XC40 Recharge (2021) $4,000
Last updated 1/17/2023
Used EV tax credit:
The Audi Q5 TFSI e Quattro. Currently qualified for used EV tax credits as a PHEV / Source: Audi:

Used plug-in hybrids EVs that qualify for tax credits

Make/Model:/Year(s) Full Tax Credit:
Audi:
A3 e-tron/ultra (2016-2018) $4,000
Audi A7 55 TFSI e Quattro (2021) $4,000
Audi A8L PHEV (2020) $4,000
Audi A8L 60 TFSI e Quattro (2021) $4,000
Audi Q5 PHEV (2020) $4,000
Audi Q5 55 TFSI e Quattro (2021) $4,000
BENTLEY MOTORS:
Bentayga Hybrid SUV (2020-2021) $4,000
BMW:
i8 (2014-2017) $4,000
i8 Coupe/Roadster (2019-2020) $4,000
330e (2016-2021) $4,000
330e xDrive (2021) $4,000
530e/xDrive (2018-2021) $4,000
740e (2017) $4,000
740e xDrive (2018-2021) $4,000
X3 xDrive30e (2020-2021) $4,000
X5 xDrive40e (2016-2018) $4,000
X5 xDrive45e (2021) $4,000
CHRYSLER:
Pacifica PHEV (2017-2021) $4,000
FORD MOTOR COMPANY:
C-Max Energi (2013-2017) $4,000
Escape Plug-In Hybrid (2020-2021) $4,000
Fusion Energi (2013-2020) $4,000
GENERAL MOTORS (GM) TBD
HYUNDAI:
Ioniq PHEV (2018-2021) $4,000
Sonata PHEV (2016-2019) $4,000
JAGUAR: TBD
JEEP:
Wrangler 4xe (2021) $4,000
Kia: TBD
LAND ROVER TBD
LINCOLN:
Aviator Grand Touring (2020-2021) $4,000
Corsair Grand Touring (2020-2021) $4,000
MAZDA: TBD
MERCEDES-BENZ
S550e (2015-2017) $4,000
S560e (2020) $4,000
GLE550e 4M (2016-2018) $4,000
GLC350e 4M (2018-2020) $4,000
MINI:
Cooper SE Countryman ALL4 (2018-2021) $4,000
MITSUBISHI: TBD
Outlander PHEV (2018-2021) $4,000
SUBARU: TBD
TOYOTA:
Prius Prime PHEV (2017-2021) $4,000
RAV4 PHEV (2021) $4,000
VOLKSWAGEN: TBD
VOLVO:
S60 (2019-2021) $4,000
S90 (2018-2021) $4,000
V60 (2020-2021) $4,000
XC60 (2018-2021) $4,000
XC90 (2016-2021) $4,000
XC90 Excellence (2018-2019) $4,000
Last updated 1/17/2023

Other resources for EV tax credits:

While tax credits for used EVs are newly revamped and may be the way to go for you personally, there are plenty of other options to get money back from Uncle Sam at the end of the fiscal year.

For instance, revised terms outlined in the Inflation Reduction Act went into affect January 1, 2023 and enable the extension of federal tax credits for new EV purchases through the next decade, while once again allowing EVs from American automakers like Tesla and GM to once again qualify.

That being said, the capitol is still trying to settle a lot of these terms to determine what vehicles qualify, so things are a bit cloudy at the moment, but you may be able to take advantage of tax credits before battery assembly requirements kick in later this year.

Learn more about federal tax credits for new EV purchases here.

Whether it’s a new or used EV purchase that ends up being right for you, you may still be able to take advantage of additional perks at the state level, depending on where you live. Credits, exemptions, and other benefits could be available for an EV purchase, lease, or for relevant equipment like home charger installation.

You can check out what EV-centric benefits may be available to you, sorted by state, here.

We’d like to reiterate once last time that we recommend doing your own research and speaking with a tax professional and EV dealer directly in order to ensure exactly what you and your vehicle purchase qualify for.

Good luck in your EV search!

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