Unlock Your EV Tax Credit
The Inflation Reduction Act changed the rules. Is buying an EV a smart move for you right now? This interactive guide helps you decide.
Start My Eligibility CheckInteractive Eligibility Calculator
Answer a few questions to see your potential federal tax credit for a new or used EV. This tool reflects the rules for vehicles purchased in 2024 and beyond.
Excludes destination fees, taxes, and dealer-installed accessories.
Vehicle must be $25,000 or less.
You can use your MAGI from the current or previous year, whichever is lower.
Your Potential Credit
Fill out the form to see your estimated tax credit. This can be taken as a point-of-sale rebate at eligible dealers.
Decision Time: Buy Now or Wait?
The EV market and tax rules are changing. Waiting could mean more choices or better tech, but it also carries risks as requirements get stricter. This section helps you weigh the pros and cons.
✅ Why Buy Now
- Certainty: If a car qualifies today, you lock in the credit. That qualification could disappear next year.
- Point-of-Sale Rebate: Get up to $7,500 as an immediate discount at the dealership. No waiting for tax season.
- Enjoy Immediately: Start saving on gas and maintenance today with proven, capable technology.
🤔 Why Wait
- More Choices: Automakers are building new US plants. More models (like some from Hyundai/Kia) will qualify in 2025+.
- Tech Advances: Future models may offer better range, faster charging, and new features.
- Potential Price Drops: Increased competition and scale could lower vehicle MSRPs over time.
Battery Sourcing Rules Get Stricter
To get the full $7,500 credit, a vehicle's battery must meet two separate sourcing requirements. The minimum percentage for each increases over time.
In addition to these percentages, strict 'Foreign Entity of Concern' (FEOC) rules began in 2024 for components and expand in 2025 for minerals, which can disqualify vehicles even if they meet the percentages.
Strategic Alternatives & Other Credits
If buying a new EV doesn't seem right, there are other powerful ways to get into a clean vehicle or get credit for home charging infrastructure.
The Lease 'Loophole'
If the car you want doesn't qualify for the purchase credit (e.g., it's made outside North America), leasing might be your answer. This strategy uses the commercial clean vehicle credit, which has fewer restrictions.
This is a common market practice and makes it possible to get a $7,500 value on popular imported EVs like the Hyundai Ioniq 5, Kia EV6, and others.
Home Charger Credit (IRC §30C)
You can get a tax credit for 30% of the cost of a home charger and its installation, up to a maximum of **$1,000**.
Major Catch: Location, Location, Location
Your home must be in an eligible census tract (either a designated low-income community or a non-urban/rural area). Most urban and suburban areas do not qualify.
The Multiplier Effect: Stacking Incentives
Don't forget local incentives! Most states and even some utility companies offer their own rebates or credits that can be combined with the federal credit for massive savings. We use Colorado as an example.
Example: Buying a $45,000 EV in Colorado
In this scenario, a Colorado resident combines the $7,500 federal credit with the state's $3,500 tax credit, effectively reducing the vehicle's cost by $11,000. Check your state's energy office website for local programs.
Official Sources & Useful Links
The rules are complex and can change. Always refer to the primary sources for the most up-to-date information.
Qualified Vehicles List
The official, up-to-date list of vehicles that qualify for the credit. Maintained by the Dept. of Energy.
IRS New Vehicle Credit Rules
The definitive source for rules on new vehicle credits from the IRS.
IRS Used Vehicle Credit Rules
The definitive source for rules on used vehicle credits from the IRS.
State & Federal Laws Database
Explore incentives in your specific state with this tool from the Dept. of Energy.
Inflation Reduction Act (Full Text)
Read the original legislation that created these rules.
US Tax Saving Tips Podcast
Listen to audio tips on US tax savings (user-provided link).
