June 1, 2023
Car shoppers no longer have to guess which hybrid or electric vehicles qualify for a federal tax credit this year, with the U.S. issuing new guidelines this week. Here’s what to know if you’re considering buying an electric car.
Which cars qualify?
It’s a short list. Only about a dozen vehicles qualify for the full $7,500 tax break — all from U.S. car makers.
Four hybrid vehicles and three EVs — the Ford Escape, Jeep Grand Cherokee, Jeep Wrangler, Lincoln Corsair Grand Touring, Ford E-Transit, Mustang Mach-E and Tesla Model 3 Standard Range — are eligible for a $3,750 credit. Customers who buy a used EV are eligible for a $4,000 credit.