New Federal Tax Credits Make Electric Vehicles and PHEVs More Affordable Than Ever
If you are in the market for a new electric vehicle or plug-in hybrid electric vehicle, the federal tax credit is back and better than ever. Check out the extensive list of EVs and PHEVs that qualify for the full $7,500 or a reduced amount that can have you in a new car right away. With gas prices higher than ever right now, is it time to make the switch to electric?
Which electric vehicles still qualify for the full $7,500 federal tax credit?
A new year means new rebates! The U.S. Department of Energy has a new list of federal tax credits for new all-electric and plug-in hybrid vehicles. There are more than 30 new electric vehicles for 2022 on the list, making some of these a good deal. The 2022 Audi e-tron GT (both the e-tron GT and RS e-tron GT models) qualifies for the full $7,500.
The 2022 A7 TFSI e Quattro and 2022 Q5 TFSI e Quattro also qualify for the full amount. BMW has a few options, including the 2022 i4 eDrive40 Gran Coupe and i4 M50 Gran Coupe. The new 2022 iX xDrive50 also gets all $7,500.
But the really exciting news is that the 2021–22 Ford Mustang Mach-E Premium (AWD, RWD), Mustang Mach-E Select (AWD, RWD), and the Mustang Mach-E GT electric vehicles qualify for $7,500 still. That likely won’t last for long, so take advantage if you have been considering it. Don’t forget that the 2022 Ford E-Transit van also qualifies!
What other electric vehicle and plug-in hybrid vehicles qualify?
Hyundai has a lot of options on the list for the new year. The 2022 Hyundai Ioniq 5 and 2022 Kona Electric still offer buyers a lot of savings with the $7,500 federal tax rebate. The 2022 Ioniq Plug-in Hybrid is eligible for the $4,543 since it is a PHEV. The Tucson and Santa Fe PHEV qualify for a $6,587 rebate.
The 2022 Jaguar I-Pace and Jeep Wrangler qualify for the whole $7,500. Plus, the Kia Niro electric vehicle and EV6 qualify for the total amount. The Kia Niro PHEV qualifies for $4,543, and the Sorento plug-in comes in at $6,587. That makes it under $40,000 total, not factoring in the fuel savings.
Land Rover has a few SUV options that qualify for the federal tax rebate. The 2022 Range Rover PHEV (HSE, Autobiography models) is a plug-in hybrid that can get you up to $6,295 back. The 2022 Range Rover Sport PHEV and HSE come in at $6,295 for the rebate.
Looking for a luxury EV or PHEV? There are plenty of options
Looking at some luxury options, the Lexus NX PHEV ($7,500), Lincoln Aviator Grand Touring ($6,534), and Lincoln Corsair Grand Touring PHEV ($6,843) are all on the list. The 2022 Lucid Air Dream Edition and Air Grand Touring are both fully electric vehicles that will get you $7,500 back, but that doesn’t make much of a dent with those two. The Lucid Air starts at $77,400 and goes all the way up to $169,000 for the Air Dream Edition.
Porsche has a few luxury options on the list, including the 2022 Cayenne in various trim levels. The Panamera and Taycan also still qualify for the full $7,500. Both the Rivian R1T truck and R1S SUV are on the list, but these are going to be hard to come by. The Mercedes-Benz brand’s 2022 EQS 450+ and 2022 EQS 580 4Matic are new and still meet the standards for all $7,500.
As always, the federal tax rebates expire after a certain number of electric vehicles are sold. Tesla doesn’t have any vehicles eligible for the rebate any longer, since the brand has sold 200,000 EVs. But with so many new makes and models available, there are a variety of brand-new vehicles for 2022.