EVs have many advantages, but one thing that keeps some car buyers away from them is their high price compared to gas-powered cars. However, in many cases, the expense is alleviated by the federal EV tax credit, which offers up to $7,500 back for eligible models. Check out the three best electric cars that are still eligible for the full $7,500 federal EV tax credit.
What electric cars are still eligible for the full $7,500 federal EV tax credit?
The federal EV tax credit was stated in 2010 as an incentive for people to buy electric cars. However, there are limits on each automaker for the EV tax credit, based on the number of electric vehicles that they sold.
Initially, an automaker can offer the full $7,500 EV tax credit when first selling electric vehicles. As detailed by Cars.com, after selling 200,000 EVs, an automaker can only offer a $3,750 credit, and then eventually, the credit winds down until it’s no longer eligible. For example, Tesla and GM have already reached their electric vehicle limit, so none of their electrics are eligible for the EV tax credit. Also, the EV tax credit applies to both all-electric cars (EV) and plug-in hybrids (PHEV).
Here are the new electric cars that are still eligible for the full $7,500 federal EV tax credit. Please note: This list is subject to change as more EVs are released, and others lose eligibility:
- Audi: e-tron (EV), e-tron Sportback (EV), e-tron GT (EV), Q4 50 e-tron Quattro (EV) A7 TFSI e Quattro (PHEV), and Q5 TFSI e Quattro (PHEV)
- Bentley: Bentayga Hybrid (PHEV)
- BMW: i3 (EV), i4 (EV), iX (EV), X5 xDrive45e (PHEV), 330e (PHEV), and 530e (PHEV)
- Chrysler: Pacifica Hybrid (PHEV)
- Ford: Mustang Mach-E (EV), F-150 Lightning (EV), E-Transit (EV), and Escape PHEV
- Honda: Clarity Plug-in Hybrid (PHEV)
- Hyundai: Ioniq PHEV, Ioniq 5 EV, Kona EV, Santa Fe PHEV, Sonata PHEV, and Tucson PHEV
- Jaguar: I-Pace (EV)
- Jeep: Wrangler 4xe (PHEV) and Grand Cherokee 4xe (PHEV)
- Kia: Niro EV (EV), EV6 (EV), Sorento PHEV, and Niro PHEV
- Land Rover: Range Rover PHEV and Range Rover Sport PHEV
- Lexus: NX (PHEV)
- Lincoln: Aviator Grand Touring (PHEV), Corsair Reserve Grand Touring PHEV, and Corsair Grand Touring PHEV
- Lucid: Air (EV)
- Mazda: MX-30 (EV)
- McLaren: Artura (PHEV)
- Mercedes-Benz: EQS (EV)
- Mini: Cooper SE Hardtop (EV) and Cooper SE Countryman ALL4
- Mitsubishi: Outlander PHEV
- Nissan: Leaf (EV)
- Polestar: 1 (PHEV) and 2 (EV)
- Porsche: Cayenne (PHEV), Panamera (PHEV), and Taycan (EV)
- Rivian: R1T (EV) and R1S (EV)
- Toyota: RAV4 Prime (PHEV) and Prius Prime (PHEV)
- Volkswagen: ID.4 (EV)
- Volvo: S60 Recharge (PHEV), S90 Recharge (PHEV), V60 Recharge (PHEV), XC40 Recharge (EV), XC60 Recharge (PHEV), and XC90 Recharge (PHEV)
As you can see, there are still many electric cars that are still eligible for the full $7,500 federal EV tax credit. However, we think the best ones still available are the Ford Mustang Mach-E, the Rivian R1T, and the Hyundai Ioniq 5.
The Ford Mustang Mach-E is a great electric car that’s still eligible for the full $7,500 federal EV tax credit
One of the best electric cars that’s still eligible for the full $7,500 federal EV tax credit is the Ford Mustang Mach-E. The Mustang Mach-E (starting price of $43,895) combines styling cues from the Mustang Mach-E with powerful electric motors and the utility of an SUV. It boasts a 0-60 mph acceleration time as low as 3.5 seconds and a respectable driving range of 315 miles. Also, the Mustang Mach-E offers many useful technologies, such as a 15.5-inch portrait touchscreen and the Ford Pro Pilot suite of driving assistance technologies.
Get the Rivian R1T with the federal EV tax credit
Another wonderful electric vehicle that’s still eligible for the full $7,500 federal EV tax credit is the Rivian R1T (starting price of $67,500). The Rivian R1T received rave reviews, including the coveted MotorTrend Truck of the Year award. With its quad-motor system, the R1T generates an incredible 835 horsepower and a 0-60 mph time of 3.0 seconds. The driving range of the R1T is 314 miles. Also, the R1T has the agility of a sports sedan for on-road driving, and shines even more when heading off-road.
Hyundai Ioniq 5 is a reasonably-priced electric car that’s still eligible for the $7,500 EV tax credit
The third vehicle on our list of the best electric cars still eligible for the full $7,500 federal EV tax credit is the Hyundai Ioniq 5. With a starting price of $39,950, the Ioniq 5 is reasonably-priced, while offering more features than the cheapest electric vehicles currently available. The Ioniq 5 also delivers respectable performance, with a 0-60 mph time of 5.2 seconds and a driving range of 300 miles.
Whether it’s the Ford Mustang Mach-E, Rivian R1T, or Hyundai Ioniq 5, there are still some great electric cars that are still eligible for the full $7,500 federal EV tax credit. As automakers sell more EVs, though, the eligibility of these vehicles might not last much longer, especially for Ford and Hyundai. With this in mind, if you want to be sure to save money with the tax credit, you might need to buy one of these vehicles soon.