Understanding the EV Tax Credit
The electric vehicle (EV) tax credit is a financial incentive designed to promote the adoption of environmentally friendly vehicles. In 2025, buyers can receive up to $7,500 in tax credits when purchasing qualifying models from manufacturers such as Tesla, Ford, and others. This credit significantly reduces the upfront cost of acquiring a new electric or hybrid vehicle, making them more accessible to consumers.
Eligible Models for the Tax Credit
As we move into 2025, several models are expected to qualify for this valuable tax credit. Major automakers are ramping up their electric and hybrid offerings, ensuring that a wide selection of vehicles meets the necessary criteria. Some notable entries include popular models from Tesla, Ford, Chevrolet, and Toyota. Each of these manufacturers has committed to producing vehicles that not only qualify for the credit but also meet rigorous emissions standards.
| Make | Model | Model Year | Credit Amount | MSRP Limit |
| Acura | ZDX | 2024-2025 | $7,500 | $80,000 |
| Cadillac | Lyriq (Luxury, Sport and V-Series models) | 2024-2026 | $7,500 | $80,000 |
| Cadillac | Optiq | 2025 | $7,500 | $80,000 |
| Chevrolet | Blazer EV (LT, RS and SS models) | 2024-2025 | $7,500 | $80,000 |
| Chevrolet | Equinox EV (LT and RS models) | 2024-2025 | $7,500 | $80,000 |
| Chevrolet | Silverado EV (LT model) | 2025 | $7,500 | $80,000 |
| Ford | F-150 Lightning Flash | 2024–2025 | $7,500 | $80,000 |
| Ford | F-150 Lightning Lariat | 2023-2025 | $7,500 | $80,000 |
| Ford | F-150 Lightning XLT | 2023–2025 | $7,500 | $80,000 |
| Honda | Prologue | 2024-2025 | $7,500 | $80,000 |
| Jeep | Wagoneer S | 2025 | $7,500 | $80,000 |
| Kia | EV6 | 2025 | $7,500 | $80,000 |
| Kia | EV9 | 2026 | $7,500 | $80,000 |
| Tesla | Cybertruck Dual Motor | 2025 | $7,500 | $80,000 |
| Tesla | Cybertruck Single Motor | 2025 | $7,500 | $80,000 |
| Tesla | Model 3 Long Range All-Wheel Drive | 2025 | $7,500 | $55,000 |
| Tesla | Model 3 Long Range Rear-Wheel Drive | 2025 | $7,500 | $55,000 |
| Tesla | Model 3 Performance | 2025 | $7,500 | $55,000 |
| Tesla | Model X All-Wheel Drive | 2025 | $7,500 | $80,000 |
| Tesla | Model Y Long Range All-Wheel Drive | 2025-2026 | $7,500 | $80,000 |
| Tesla | Model Y Long Range Rear-Wheel Drive | 2025 | $7,500 | $80,000 |
| Tesla | Model Y Performance | 2025 | $7,500 | $80,000 |
How to Claim the Tax Credit
To take advantage of the EV tax credit, consumers must first ensure that the vehicle they are purchasing qualifies. This process involves confirming that the EV meets specific requirements set by the IRS. After purchase, the credit is claimed during tax filing. Buyers need to keep applicable documentation, including the bill of sale and vehicle specifications, to facilitate a smooth tax credit application process. With the right preparation, accessing this credit can substantially impact the total cost of ownership for electric vehicles in 2025.
