There are tons of new EVs on the market, but not all of them qualify for the 30D tax incentive, and some might only qualify for half of the incentive. Some EVs that qualified for this tax incentive in previous years no longer do.
To make sure that the EV you want to purchase qualifies for this tax incentive, talk to your dealer before making a purchase. They are required by law to provide you with the information you need to know if a car qualifies.
You can also look up information about whether a specific vehicle qualifies for a 30D tax incentive on this federal government website.
If you’re interested in learning about requirements that new EVs must meet, we’ve broken them down below:
Qualifying new EVs must meet manufacturing and geographic requirements
To qualify for the 30D tax incentive, a new EV must meet the following requirements:
Have a battery capacity of at least 7 kilowatt hours
Be rechargeable using an external source of electricity
Weigh less than 14,000 pounds
Be made by a qualified manufacturer and purchased new
Have final assembly in North America
EVs also have to meet battery and minerals sourcing requirements
If you started driving your new EV on or after April 18, 2023, it must meet federal requirements for battery components and critical minerals to qualify for this EV incentive.
If your new EV meets some or all of these requirements, you’ll be eligible to receive:
$3,750 if the vehicle meets the critical minerals requirement only
$3,750 if the vehicle meets the battery components requirement only
$7,500 if the vehicle meets both
It’s important to ask your dealership which incentive level your potential new vehicle may qualify for.
You can learn more about these requirements here.
