{"id":22111,"date":"2023-01-05T20:05:36","date_gmt":"2023-01-05T20:05:36","guid":{"rendered":"https:\/\/www.etags.com\/blog\/?p=22111"},"modified":"2026-01-16T16:22:55","modified_gmt":"2026-01-16T16:22:55","slug":"the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes","status":"publish","type":"post","link":"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/","title":{"rendered":"The New EV Tax Credits Can Save You Up To $7,500 On Your Federal Taxes"},"content":{"rendered":"

By now you\u2019ve heard of the Inflation Reduction Act that was signed back in August. The IRA represents the largest investment in addressing climate change in U.S. history. A $391 billion investment in energy and climate change to be more specific.<\/p>\n

 <\/p>\n

The IRA\u2019s aim is for greenhouse gas emissions to drop 40% below 2005 levels by 2030<\/p><\/blockquote>\n

$13 billion for EV incentives or up to $7,500 tax credit<\/strong><\/h2>\n

A significant area of this federal legislation is the $13 billion allocated for electric vehicles incentives. According to Kelley Blue Book, the bill extends a tax credit of up to $7,500 for buying a new EV or plug-in hybrid, and $4,000 for a used electric car.<\/p>\n

For instance, if you buy a new EV that qualifies for the $7,500 tax credit you can deduct the amount from the total federal taxes you owe that year. So if you\u2019ll owe 10,000 in taxes, you\u2019ll only pay $2,500. According to Car and Driver, starting next year, buyers of qualifying models for the federal EV tax credit will be able to transfer the credits to the dealer itself to reduce the vehicle’s sale price.<\/p>\n

2021-2023 Nissan Leaf models and the 2022-2023 Jeep Wrangler 4xe qualify for the new EV federal tax credit<\/p><\/blockquote>\n

How to claim your EV tax credits: IRS Form 8936<\/strong><\/h2>\n

To get your electric vehicle tax credit, simply claim it on your federal income tax return by filing IRS Form 8936. How much credits you get, or tax incentives, depend on a variety of factors including the EV\u2019s battery pack capacity. If an electric vehicle or plug- hybrid<\/a> has a battery capacity of less than 7 kWh, then it doesn\u2019t qualify for any EV tax credits.<\/p>\n

The new tax credits come with some fine print: income and price caps<\/strong><\/h2>\n

The IRA\u2019s incentives identify qualifying EVs to be: low-emissions trucks, SUVs and vans with MSRP of up to $80,000. For cars, the cap is at $55,000. To claim the $4,000 tax credit, you must buy a used electric car under $25,000 and two model years old. You must also buy the used EV though a dealership.<\/p>\n

According to the IRS, Mercedes-Benz has entered into a written agreement to become a qualified manufacturer, but hasn’t yet submitted a list of specific models that are eligible for the tax credits<\/p><\/blockquote>\n

A used vehicle qualifies only once in its lifetime for the $4,000 tax credit, but the buyer can qualify for an EV credit once every three years. To qualify, individuals must make $75,000 or less, or $112,500 for heads of households and $150,000 for joint return filers.<\/p>\n

 <\/p>\n

What electric vehicles qualify for the tax credits<\/strong><\/h2>\n

To take advantage of the tax incentives, the EVs you buy must be manufactured in the U.S., Canada, or Mexico. Their batteries\u2019 minerals plus parts also from North America or a country with a free-trade agreement with the U.S. Minerals recycled in N.A. The car\u2019s VIN will confirm where the EV was assembled.<\/p>\n

The 2023 Audi Q5 TFSI e Quattro PHEV qualifies for a tax credit, so do the 2021-2023 BMW 330e and BMW X5 xDrive45e. If you\u2019re looking for a Ford EV, the 2022-2023 Ford Escape plug-in hybrid, the F-150 Lightning, and Lincoln Aviator Grand Touring are all eligible. Some GMC\u2019s, Buicks, and Cadillacs qualify too. Hyundai, Kia, and Jaguar as well. The IRS has a list of all qualifying automakers and EV models for tax credit<\/a>.<\/p>\n

Tesla and General Motors EVs have available tax credits again<\/p><\/blockquote>\n

The $7,500 credit also applies to hydrogen fuel-cell cars like the Toyota Mirai or Hyundai Nexo, but the U.S. only has a few hydrogen refueling stations, mostly in California.<\/p>\n

Think you\u2019ll be taking advantage of this new EV tax credit?<\/p>\n","protected":false},"excerpt":{"rendered":"

By now you\u2019ve heard of the Inflation Reduction Act that was signed back in August. The IRA represents the largest investment in addressing climate change in U.S. history. A $391…<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1592,39,1591],"tags":[1666,1618],"class_list":{"0":"post-22111","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-car-buying","7":"category-cars","8":"category-electric-vehicles","9":"tag-electric-car","10":"tag-electric-vehicle"},"acf":[],"yoast_head":"\nThe New EV Tax Credits Can Save You Up To $7,500 On Your Federal Taxes | eTags - Vehicle Registration & Title Services<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The New EV Tax Credits Can Save You Up To $7,500 On Your Federal Taxes\" \/>\n<meta property=\"og:description\" content=\"By now you\u2019ve heard of the Inflation Reduction Act that was signed back in August. The IRA represents the largest investment in addressing climate change in U.S. history. A $391…\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/\" \/>\n<meta property=\"og:site_name\" content=\"eTags - Vehicle Registration & Title Services\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/eTagsTimeline\/\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/etagstimeline\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-05T20:05:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-16T16:22:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.etags.com\/blog\/wp-content\/uploads\/2025\/05\/email.gif\" \/>\n\t<meta property=\"og:image:width\" content=\"361\" \/>\n\t<meta property=\"og:image:height\" content=\"146\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/gif\" \/>\n<meta name=\"author\" content=\"eTags\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@https:\/\/www.twitter.com\/etagstweets\" \/>\n<meta name=\"twitter:site\" content=\"@eTagsTweets\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"eTags\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\\\/\"},\"author\":{\"name\":\"eTags\",\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/#\\\/schema\\\/person\\\/49fd63ec6797c062fb10b8872dce8be6\"},\"headline\":\"The New EV Tax Credits Can Save You Up To $7,500 On Your Federal Taxes\",\"datePublished\":\"2023-01-05T20:05:36+00:00\",\"dateModified\":\"2026-01-16T16:22:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\\\/\"},\"wordCount\":627,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/#organization\"},\"keywords\":[\"electric car\",\"electric vehicle\"],\"articleSection\":[\"Car Buying\",\"Car Culture\",\"Electric Vehicles\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.etags.com\\\/blog\\\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\\\/\",\"url\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\\\/\",\"name\":\"The New EV Tax Credits Can Save You Up To $7,500 On Your Federal Taxes | eTags - Vehicle Registration & Title Services\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/#website\"},\"datePublished\":\"2023-01-05T20:05:36+00:00\",\"dateModified\":\"2026-01-16T16:22:55+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.etags.com\\\/blog\\\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The New EV Tax Credits Can Save You Up To $7,500 On Your Federal Taxes\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/\",\"name\":\"eTags - Vehicle Registration & Title Services Driven By Technology\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/#organization\",\"name\":\"eTags - Vehicle Registration & Title Services Driven By Technology\",\"url\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/wp-content\\\/uploads\\\/2025\\\/05\\\/email.gif\",\"contentUrl\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/wp-content\\\/uploads\\\/2025\\\/05\\\/email.gif\",\"width\":361,\"height\":146,\"caption\":\"eTags - Vehicle Registration & Title Services Driven By Technology\"},\"image\":{\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/eTagsTimeline\\\/\",\"https:\\\/\\\/x.com\\\/eTagsTweets\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.etags.com\\\/blog\\\/#\\\/schema\\\/person\\\/49fd63ec6797c062fb10b8872dce8be6\",\"name\":\"eTags\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9b7db7056f653add9bff5595b34c90a3f7e8cbd022d60b614fcca28cec72734a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9b7db7056f653add9bff5595b34c90a3f7e8cbd022d60b614fcca28cec72734a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9b7db7056f653add9bff5595b34c90a3f7e8cbd022d60b614fcca28cec72734a?s=96&d=mm&r=g\",\"caption\":\"eTags\"},\"description\":\"Driven by technology, eTags is revolutionizing online vehicle-related transactions while providing an unparalleled customer experience. Online vehicle registration and car tag renewal, title transfers, and more.\",\"sameAs\":[\"https:\\\/\\\/www.etags.com\",\"https:\\\/\\\/www.facebook.com\\\/etagstimeline\",\"https:\\\/\\\/www.instagram.com\\\/etags\",\"https:\\\/\\\/www.pinterest.com\\\/etagsdotcom\\\/\",\"https:\\\/\\\/x.com\\\/https:\\\/\\\/www.twitter.com\\\/etagstweets\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The New EV Tax Credits Can Save You Up To $7,500 On Your Federal Taxes | eTags - Vehicle Registration & Title Services","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/","og_locale":"en_US","og_type":"article","og_title":"The New EV Tax Credits Can Save You Up To $7,500 On Your Federal Taxes","og_description":"By now you\u2019ve heard of the Inflation Reduction Act that was signed back in August. The IRA represents the largest investment in addressing climate change in U.S. history. A $391…","og_url":"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/","og_site_name":"eTags - Vehicle Registration & Title Services","article_publisher":"https:\/\/www.facebook.com\/eTagsTimeline\/","article_author":"https:\/\/www.facebook.com\/etagstimeline","article_published_time":"2023-01-05T20:05:36+00:00","article_modified_time":"2026-01-16T16:22:55+00:00","og_image":[{"width":361,"height":146,"url":"https:\/\/www.etags.com\/blog\/wp-content\/uploads\/2025\/05\/email.gif","type":"image\/gif"}],"author":"eTags","twitter_card":"summary_large_image","twitter_creator":"@https:\/\/www.twitter.com\/etagstweets","twitter_site":"@eTagsTweets","twitter_misc":{"Written by":"eTags","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/#article","isPartOf":{"@id":"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/"},"author":{"name":"eTags","@id":"https:\/\/www.etags.com\/blog\/#\/schema\/person\/49fd63ec6797c062fb10b8872dce8be6"},"headline":"The New EV Tax Credits Can Save You Up To $7,500 On Your Federal Taxes","datePublished":"2023-01-05T20:05:36+00:00","dateModified":"2026-01-16T16:22:55+00:00","mainEntityOfPage":{"@id":"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/"},"wordCount":627,"commentCount":0,"publisher":{"@id":"https:\/\/www.etags.com\/blog\/#organization"},"keywords":["electric car","electric vehicle"],"articleSection":["Car Buying","Car Culture","Electric Vehicles"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/","url":"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/","name":"The New EV Tax Credits Can Save You Up To $7,500 On Your Federal Taxes | eTags - Vehicle Registration & Title Services","isPartOf":{"@id":"https:\/\/www.etags.com\/blog\/#website"},"datePublished":"2023-01-05T20:05:36+00:00","dateModified":"2026-01-16T16:22:55+00:00","breadcrumb":{"@id":"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.etags.com\/blog\/the-new-ev-tax-credits-can-save-you-up-to-7500-on-your-federal-taxes\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.etags.com\/blog\/"},{"@type":"ListItem","position":2,"name":"The New EV Tax Credits Can Save You Up To $7,500 On Your Federal Taxes"}]},{"@type":"WebSite","@id":"https:\/\/www.etags.com\/blog\/#website","url":"https:\/\/www.etags.com\/blog\/","name":"eTags - Vehicle Registration & Title Services Driven By Technology","description":"","publisher":{"@id":"https:\/\/www.etags.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.etags.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.etags.com\/blog\/#organization","name":"eTags - Vehicle Registration & Title Services Driven By Technology","url":"https:\/\/www.etags.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.etags.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.etags.com\/blog\/wp-content\/uploads\/2025\/05\/email.gif","contentUrl":"https:\/\/www.etags.com\/blog\/wp-content\/uploads\/2025\/05\/email.gif","width":361,"height":146,"caption":"eTags - Vehicle Registration & Title Services Driven By Technology"},"image":{"@id":"https:\/\/www.etags.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/eTagsTimeline\/","https:\/\/x.com\/eTagsTweets"]},{"@type":"Person","@id":"https:\/\/www.etags.com\/blog\/#\/schema\/person\/49fd63ec6797c062fb10b8872dce8be6","name":"eTags","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/9b7db7056f653add9bff5595b34c90a3f7e8cbd022d60b614fcca28cec72734a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/9b7db7056f653add9bff5595b34c90a3f7e8cbd022d60b614fcca28cec72734a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/9b7db7056f653add9bff5595b34c90a3f7e8cbd022d60b614fcca28cec72734a?s=96&d=mm&r=g","caption":"eTags"},"description":"Driven by technology, eTags is revolutionizing online vehicle-related transactions while providing an unparalleled customer experience. Online vehicle registration and car tag renewal, title transfers, and more.","sameAs":["https:\/\/www.etags.com","https:\/\/www.facebook.com\/etagstimeline","https:\/\/www.instagram.com\/etags","https:\/\/www.pinterest.com\/etagsdotcom\/","https:\/\/x.com\/https:\/\/www.twitter.com\/etagstweets"]}]}},"_links":{"self":[{"href":"https:\/\/www.etags.com\/blog\/wp-json\/wp\/v2\/posts\/22111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etags.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etags.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etags.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etags.com\/blog\/wp-json\/wp\/v2\/comments?post=22111"}],"version-history":[{"count":16,"href":"https:\/\/www.etags.com\/blog\/wp-json\/wp\/v2\/posts\/22111\/revisions"}],"predecessor-version":[{"id":28323,"href":"https:\/\/www.etags.com\/blog\/wp-json\/wp\/v2\/posts\/22111\/revisions\/28323"}],"wp:attachment":[{"href":"https:\/\/www.etags.com\/blog\/wp-json\/wp\/v2\/media?parent=22111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etags.com\/blog\/wp-json\/wp\/v2\/categories?post=22111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etags.com\/blog\/wp-json\/wp\/v2\/tags?post=22111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}