On April 18, 2023, the number of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) eligible for an Internal Revenue Code (IRC) Section 30D tax credit shrank considerably. According to the Internal Revenue Service, 22 EVs now qualify for IRC Section 30D tax credits, down from 41. Of these, 14 qualify for the full $7,500 credit and 8 for $3,750.
The Department of Energy has a tool on fueleconomy.gov that provides a table of all Section 30D qualifying make/models/variants. There are two search categories or, as the site refers to them, “Purchase Scenarios”: One for vehicles placed in service between Dec. 31, 2022, and April 17, 2023; and one for vehicles placed in service on or after April 18, 2023.
Consumers and dealers don’t need to know the specifics regarding battery and mineral content. In this context, the only relevant information for a consumer considering purchasing an EV is whether that vehicle qualifies for a tax credit.
Importantly, most EV make/models potentially qualify for an IRC Section 45W tax credit (the credit for vehicles used for business purposes) if sold to commercial customer-taxpayers. This includes leasing companies intending to lease the vehicle to commercial or noncommercial customers.
Please note, it is always important to check the Section 30D qualifying list and with your vehicle manufacturers as EV make/models may be added to or fall off the list as circumstances change.