When you’re trying to purchase an electrical automobile, a handful of fashions now qualify for the federal EV tax credit score for the primary time—together with the Tesla Cybertruck. Stricter guidelines for the $7,500 credit score went into impact January 1, which additionally knocked some fashions off the eligibility record.
There at the moment are 18 fashions of EVs and plug-in hybrids that qualify for the tax credit score, down from 22 fashions final 12 months, based on the Division of Vitality. To be eligible for the EV tax credit score, a part of President Biden’s Inflation Discount Act, fashions should meet sure home sourcing necessities for his or her important minerals and battery parts. In 2025, the percentage of materials that want to fulfill these necessities elevated.
The Cybertruck was on the EV tax credit score eligibility record in 2023, however was bumped off in 2024 (together with a bunch of different fashions) when new battery sourcing guidelines took impact. Now, its Twin motor and Single Motor 2025 fashions are eligible. (Cybertrucks have been additionally within the information at first of the brand new 12 months as a result of one was involved in an explosion outside of Trump Hotel in Las Vegas. )
Additionally new to the record this 12 months are the Genesis Electrified GV70; Hyundai Ioniq 5 and Ioniq 9; and Kia EV6 and EV9. EVs from Volkswagen, Audi, Ford, Nissan, Jeep, Lincoln, and Rivian dropped off of the 2025 tax credit score record. (For Ford, the Escape Plug-in Hybrid is now not eligible, however the F-150 Lightning nonetheless is.) EVs from Acura, Cadillac, Chevrolet, Chrysler, Honda, and different Tesla fashions (the three, X, and Y) stay on the eligibility record from 2024.
Whereas EVs have been lauded as a local weather resolution, some say e-bikes are essential to decarbonizing our transportation as properly—particularly as a result of massive SUVs and vehicles, even if electric, include environmental and security downsides. But e-bikes aren’t at present out there for federal tax credit. There’s laws contemplating such a credit score; the Electrical Bicycle Incentive Kickstart for the Setting Act, additionally known as the E-BIKE Act, has been launched in Congress, however has but to advance. The act would offer a tax credit score for 30% of the price of e-bikes that complete lower than $8,000. Some states, nevertheless, have applied their very own e-bike subsidies.
Whereas that tax credit score hangs within the stability, the prevailing EV tax credit score does as properly. Incoming-President Donald Trump needs to get rid of the EV tax credit, although it’s nonetheless not clear if that can occur. If he does kill the credit, customers who purchase an EV in early 2025 could possibly be out of luck—however since many make the most of the tax credit score as quickly as they purchase an EV, these folks might nonetheless profit instantly.
To see the complete record of eligible EVs, and to check to prior years, go to fueleconomy.gov and choose the January 1, 2025-December 31, 2025 supply date. (You may also examine prior eligibility lists by selecting completely different dates, and in addition see eligible used EVs here.)