Only 1 Chrysler Model Still Qualifies for the Full EV Tax Credit
Due to new regulations set by the U.S. Treasury, the number of EVs that qualify for a full or partial federal EV tax credit has decreased significantly. However, one Chrysler model is still eligible for the full $7,500 EV tax credit.
New requirements for the federal EV tax credit
New rules set by the U.S. Treasury have changed the eligibility requirements for electric vehicles to qualify for the EV tax credit. To qualify, a vehicle must have a battery capacity of at least 7 kWh, a gross vehicle weight rating of under 14,000 pounds, and be made by a qualified manufacturer. (Fuel cell vehicles need not be produced by a qualified manufacturer to be eligible.)
However, the IRS says the new rules also require that vehicles meet critical mineral sourcing and/or battery component sourcing requirements to qualify for the full $7,500 tax credit. According to FuelEconomy.gov, a vehicle meeting both sourcing requirements may be eligible for the full credit. In contrast, a vehicle meeting only one of these sourcing requirements may be eligible for a $3,750 credit. Vehicles that meet neither requirement will not qualify.
Due to these new requirements, many EVs are no longer eligible for a full or partial tax credit from the federal government. It’s important to note that a vehicle’s MSRP also plays a role in determining eligibility, with a cap of $80,000 for vans, SUVs, and pickup trucks and $55,000 for other cars.
What makes the Chrysler Pacifica Hybrid eligible for the full EV tax credit?
The 2022–23 Pacifica Hybrid is a plug-in hybrid (PHEV) minivan and the only Chrysler model to qualify for the full federal EV tax credit.
One of the Pacifica’s key features is its EPA-estimated electric-only range of 32 miles, ideal for most daily commutes without using gasoline. Additionally, the Pacifica Hybrid has an EPA-estimated combined gas-electric range of 520 miles, making it an excellent choice for long-distance travel without worrying about running out of fuel or finding a charging station.
Another advantage of the Pacifica Hybrid is its spacious and versatile interior. With the second and third rows folded flat, it provides 140.5 cubic feet of cargo space, making it an ideal family car for road trips or hauling large items. The Pacifica Hybrid can also comfortably seat up to seven passengers, making it a great option for larger families.
In terms of safety and technology, the Pacifica Hybrid has numerous advanced features, such as adaptive cruise control, blind spot monitoring, and wireless smartphone charging. They help make driving more comfortable and convenient, giving riders peace of mind on long trips or daily commutes.
Other cars that qualify for the federal EV tax credit
In addition to the Chrysler Pacifica Hybrid, several other new EVs qualify for the full federal tax credit.
According to CNET, the 2022–23 Chevrolet Bolt and Bolt EUV offer impressive range and technology features. The 2023–24 Cadillac Lyriq provides luxury and style with a range of over 300 miles. And the 2024 Chevy Silverado full-size pickup truck, Blazer midsize SUV, and Equinox compact SUV are also among the models to qualify for the credit.
In addition, the Tesla Model 3 Performance and Model Y AWD, Long Range AWD, and Performance boast impressive range, speed, and the Autopilot advanced driver-assistance system.
Ford Motor Company has two models that qualify: the standard and extended-range 2022–23 Ford F-150 Lightning all-electric pickup truck and the 2022–23 Lincoln Aviator Grand Touring luxury midsize SUV.
These models are available for purchase and meet the general requirements for the federal EV tax credit.