The electric Ford F150 Lightning is eligible for the full $7,500 tax credit

The Internal Revenue Service (IRS) has revised rules for electric vehicle (EV) tax credits again, effective January 1, impacting eligibility and credit amounts.

The good news
Several electric and plug-in hybrid models remain eligible for partial tax credits, and the maximum $7,500 credit remains the same.

Consumers can now have the tax credit applied to the vehicle’s purchase price at the time of buying, eliminating the need to wait until tax filing.

The bad news
Fewer EVs now qualify for federal tax credits, and even fewer are eligible for the maximum $7,500 credit.

The altered rules also scrutinize the origin of vehicle parts, especially batteries and components. Parts made in China may see tax credits reduced or eliminated.

Eligibility for EV models
Models, including the Ford F-150 Lightning and Tesla Model 3, Y, and X, are still eligible for the full $7,500 tax credit, while others are not.

The status of certain models, like the Nissan Leaf and Ford Mustang Mach-E, may change as automakers adjust their supply chains.