Personal Finance

In the market for an electric vehicle? Here's why 2024 might be the year to buy

The Treasury Department has made the new clean vehicle tax credit much easier to obtain this year.

A Chevrolet Bolt electric vehicle.
David Paul Morris/Bloomberg via Getty Images

If you've been in the market for an electric vehicle, 2024 might be your year to buy one since the Treasury Department has made the “new clean vehicle” tax credit much easier to obtain in 2024.

Americans wanting to claim the tax credit, worth up to $7,500, will now be able to do so at the point of sale instead of having to wait until they file their tax returns.

That means participating dealerships will now be able to directly apply the $7,500 tax break on an electric vehicle purchase price either for a down payment or as a cash payment to buyers.

The changes also allow taxpayers to claim a "previously owned clean vehicle” tax credit of up to $4,000 when buying used EV models.

Who can claim the tax credit?

According to the U.S. Department of Energy, to claim the tax credit taxpayers must buy the EV for their personal use and not for resale. The vehicle must also be used primarily in the U.S.

To claim the credit, the adjusted gross income (AGI) of the taxpayers must not exceed $300,000 for married couples filing jointly, $225,000 for heads of households and $150,000 for all other filers.

What vehicles qualify for the EV tax credit?

Here are the EVs that qualify for the full $7,500 tax credit:

Chevrolet Bolt2022/2023MSRP $55,000 or below
Chrysler Pacifica Hybrid PHEV2022-2024MSRP $80,000 or below
Ford F-150 Lightning2022-2024MSRP $80,000 or below
Tesla Model 3 Performance2023/2024MSRP $55,000 or below
Tesla Model X2023/2024MSRP $80,000 or below
Tesla Model Y Performance/ADW/ RWD (2024 only)2023/2024MSRP $80,000 or below
Volkswagen ID.4 standard, S, Pro S Plus, Pro S, Pro, AWD Pro, AWD Pro S, and AWD Pro S Plus2023/2024MSRP $80,000 or below

What vehicles qualify for the partial EV tax credit ($3,750):

Ford Escape Plug-In Hybrid2022-2024MSRP $80,000 or below
Jeep Grand Cherokee 4xe 2022-2024MSRP $80,000 or below
Jeep Wrangler 4xe 2022-2024MSRP $80,000 or below
Lincoln Corsair Grand Touring 2022-2024MSRP $80,000 or below
Rivian R1S and R1T2022-2024MSRP $80,000 or below
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