With more electric vehicles (EVs) becoming available, which cars are still eligible for a $7,500 tax credit?
In 2010, a $7,500 federal tax credit became available for electric vehicles purchased “in or after 2010,” according to the Office of Energy Efficiency and Renewable Energy. The thinking went that the credit would motivate consumers to consider EVs, which may have otherwise been too expensive. But there was a catch: The $7,500 credit only applied to the first 200,000 units sold by each automaker. Once automakers passed the 200,000-unit mark, the credit would phase out: the first two quarters of the phase-out would offer half the $7,500 incentive. The third and fourth quarter would offer one-quarter of it. And after a full year, the credit would no longer be offered.
Tesla is the latest automaker to pass the 200,000-unit mark with its Model 3. The company announced on its site that the $7,500 tax credit will expire on December 31, 2018. If you’re interested in buying a Tesla in 2019, you’ll qualify for a $3,750 tax credit—until June 30, at least. From July 1 to December 31, 2019, the tax credit drops again to $1,875. To make up for the lower tax credit, Tesla announced that it’s lowering the price of all its cars by $2,000.
Which Automakers Make EVs?
Here are just a few of the electric vehicles available for sale in 2018: Chevy Bolt EV, Honda Insight, Nissan LEAF, Jaguar I-PACE, BMW i3, and Volkswagen e-Golf. To see the full list, check out all the EVs on sale in 2018. More automakers are joining the list. Audi debuted the e-tron at the Los Angeles Auto Show, Porsche will be releasing the Taycan next year, INFINITI will be showcasing an electric concept at the 2019 Detroit Auto Show, and Ford plans to release an electric Mustang.
Which EVs Qualify for a Full Tax Credit?
There are plenty of other EVs available that still qualify for the full tax credit, including all the ones listed above. Yet, despite the lingering tax credit, many shoppers are still wary of buying EVs. They cite range anxiety as one of their top concerns. Plug-in electric vehicles (PHEVs) are available as an option and can ease that worry. The Chrysler Pacifica Plug-in Hybrid, Subaru Crosstrek PHEV, Kia Niro PHEV, Kia Optima PHEV, Mitsubishi Outlander PHEV, and the Honda Clarity PHEV all qualify for a tax credit, though the total credit will vary by car. You’ll also be able to check out the Lincoln Aviator, which will offer a plug-in hybrid option, when it hits dealer lots next year. To check specific automakers and their respective tax credits, check the fueleconomy.gov site.
We don’t know when all of these automakers will hit the 200,000 unit mark. EV sales continue to grow across brands: EV sales in 2017 sat at 199,826, while 2018 climbed to 312,877. According to Nissan’s news site, it has sold 123,000 LEAFs since unveiling the car in 2011. Ford reported 110,658 EVs sold to date compared to 106,653 in 2017.
Check out these articles for more car news: