EV Tax Credits: Everything You Need to Know

2023 Inflation Reduction Act Expands Eligibility

As part of the 2023 Inflation Reduction Act, eligible businesses and tax-exempt organizations can now claim up to $7,500 in tax credits for the purchase or lease of new clean vehicles.

IRS List of Eligible Vehicles

The Department of Energy hosts a user-friendly version of the IRS's list of potentially eligible clean vehicles, making it easy for businesses to identify qualifying vehicles.

Federal EV Tax Credit for New Vehicles

Thanks to the Inflation Reduction Act, a new federal EV tax credit is now available for new plug-in electric vehicles (EVs) purchased or leased in 2022 or later.

Clean Vehicle Credit for Electric Vehicles Prior to 2023

Prior to 2023, individuals who purchased or leased a qualified electric vehicle, including any new Tesla model, were eligible for a clean vehicle credit.

Tesla's Reliance on Regulatory Credits

Tesla's reliance on so-called regulatory credits to generate revenue has recently come under scrutiny.