The Nissan Leaf has been a standby for plug-in hybrids since 2011.
An all-electric E-Transit model is new for 2022 that offers up to 126 miles of range.
The amount of tax credit you qualify for is based on your income tax and the size of the electric battery in your vehicle.
The popularity and accessibility of plug-in hybrid cars are growing each day. Especially with the slew of new tax incentives the U.S. has introduced. For this article, we will be focusing on just the U.S. But, depending on where you are, some of these vehicles might also qualify for incentives.
Before we get into the fun part of this article, we will go over what actually makes a car qualify for tax incentives.
How Does an Electric Vehicle Qualify for a Tax Incentive?
Luckily, this is one of the most simple things regarding tax incentives, as far as qualifying goes. “All electricand plug-in hybrid vehicles that were purchased new in or after 2010 may be eligible for a federal income tax credit of up to $7,500,” according to the U.S. Department of Energy.
Now, of course, you cannot expect to just buy a car and then, when April rolls around, get a check for $7,500. In reality, the amount you qualify for is based on your income tax and the size of the electric battery in your vehicle.
For example, if you purchased a Ford F-150 Lightning and owed $3,500 in income tax this year, that is the federal tax credit you would receive. However, if you owed $10,000 in federal income tax, you would qualify for the full $7,500 credit.
With the new inflation act, some stipulations have been added, like the cars have to be assembled in the U.S. We have included cars from non-U.S. manufacturers, but their final assembly is in the states, so they should still qualify.
Plug-in Hybrids and EVs that Should Qualify for 2022 Tax Incentives
Now to the fun part! We want to note that these are in no particular order, and we are not ranking the cars against each other.
1. 2022 Nissan Leaf
The Nissan Leaf has been a standby for plug-in hybrids since 2011, and they continue to be excellent cars.
The standard Leaf EV has a 40-kilowatt-hour battery that provides an EPA-estimated range of 149 miles. The Plus version gets a 62-kilowatt-hour battery, which gives the Leaf an estimated range of 215 to 226 miles, depending on the trim version.
We highly recommend the Nissan Leaf to anybody looking for a car that gets them around town while still having quite a powerful engine. However, with its slightly lower range on the standard version, it is hard to recommend it for road tripping.
2. 2023 Jeep Grand Cherokee
Anybody that wants to off-road while still getting excellent miles per gallon and being environmentally conscious, the 2023 Jeep Grand Cherokee is the way to go.
The new 4xe plug-in hybrid version uses a 2.0-liter turbocharged four-cylinder coupled with an electric drive and provides a claimed 25 miles of electric-only range.
You definitely won’t make it too far with just electric power, but the fact that you can make it 25 miles in a decently-sized SUV is quite impressive. With a couple more years of electric vehicle advancement, we are sure to see that number grow.
3. 2022 Rivian R1S
The name Rivian might not be recognizable compared to Nissan and Jeep, but the new Rivian R1S is too impressive not to talk about.
This American startup company is launching an upscale three-row electric SUV. It has an EPA-rated range of 316 miles. But, Rivian says a longer-range version, as well as a 250-mile model, will be available soon.
From the outside, the Rivian looks like a Jeep competitor, but the price range it sits in is definitely more luxurious. Unless you really want to, we don’t recommend using a $75,000 vehicle to go mudding or off-roading.
4. 2022 Ford Transit
The 2022 Ford Transit is not the sexiest car on this list, but we want to show off how many versatile forms of EVs are coming in today.
An all-electric E-Transit model is new for 2022 that offers up to 126 miles of range. Driver assist systems such as FCW, AEB, and pedestrian detection are standard. BSW and adaptive cruise control are optional.
The 2022 Ford Transit is perfect for the contractor or person who needs a work van to get around to worksites or clients and wants to do it in an eco-friendly, affordable fashion.
5. 2022 Chevrolet Bolt
The Chevy Bolt is another one of those models that have been around for a while, but the 2022 refresh has a lot of welcomed upgrades.
The 200-hp electric motor that drives the front wheels used in the current Bolt carries over, and it can travel 259 miles on a fully charged battery. DC fast-charging capability is standard, and Chevrolet says 30 minutes of DC fast charging at public locations will add 100 miles of range.
It is worth noting that this car may not qualify if you purchase it now, but, after December 31st, 2022, it should be eligible. Of course, make sure to check for your specific case before purchasing.
6. 2022 Ford F-150 Lighting
The Ford F-150 lighting is the only EV pickup truck we found that qualifies for these incentives. But, of course, this might change before you file your taxes for 2022.
This pickup is offered in two power configurations, with 452- and 580-hp. The standard-range battery has an EPA estimated 230 miles, and the extended-range battery is rated at 320 miles. This EV truck is no slouch, either. It boasts a 2,235-pound payload capacity (standard range) and a 10,000-pound tow capacity (extended range).
The Ford F-150 is perfect for someone that wants an EV but doesn’t want to give up the versatility that a pickup truck can offer.
Conclusion
Plug-in hybrids and electric vehicles have become much more accessible and versatile than just a few years ago. So, don’t think you are just relegated to a Tesla anymore. The tax incentives have also made many more people interested in EV vehicles, for a good reason. Depending on your circ*mstance, it can make a big difference.
These cars we found should all qualify for tax incentives, but be sure to make sure that they apply in your region before purchasing a new plug-in hybrid or EV so you get the deal!
Next Up…
The 2024 Honda Prologue: Everything We Know Today – Price, Range, Specs, and More
Here Are The 12 EVs That Still Qualify For The $7,500 Federal Tax Credit Today
The 6 Plug-in Hybrids and EVs You Can Buy Today That Qualify for EV Tax Credits
The 6 Plug-in Hybrids and EVs You Can Buy Today That Qualify for EV Tax Credits FAQs (Frequently Asked Questions)
Does Honda CRV hybrid qualify for tax credit?
Honda’s CRV hybrid does not qualify for a tax credit because they are not fully electric, and you cannot plug them in.
Does Toyota Avalon hybrid qualify for tax credit?
Yes, because even though it is a hybrid like the Honda CRV, it is a plug-in hybrid instead of a traditional hybrid.
Is there a tax benefit to buying a hybrid?
All-electric and plug-in hybrid cars purchased new in or after 2010 may be eligible for a federal income tax credit of up to $7,500.
How do I get my California EV rebate?
The vehicle must have an odometer reading of less than 7,500 at the time of purchase. Submit a rebate application within 3 months after the date of purchase to be eligible for a rebate. The vehicle must be on the eligibility list at the time the car is purchased.
What is the difference between hybrid and plug-in hybrid?
With a plug-in hybrid, the electric battery is the primary power source for the car. When the battery runs down, the internal combustion engine takes over. In a traditional hybrid, the battery only provides enough power for driving the car at slower speeds.
The idea in theory is quite simple, per the IRS – “You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.
The hybrid tax credit is the same as the EV tax credit for your IRS return. The Qualified Plug-In Electric Drive Motor Vehicle Credit can be worth up to $7,500 in nonrefundable credit. It applies to plug-in hybrid vehicles, or PHEVs, and plug-in electric vehicles, EVs or PEVs.
As part of the Inflation Reduction Act, beginning Jan. 1, 2023, the credit equals 30% of certain qualified expenses: Qualified energy efficiency improvements installed during the year which can include things like:Exterior doors, windows and skylights.Insulation and air sealing materials or systems.
For EVs placed into service in 2023, the up to $7,500 EV tax credit is extended for 10 years — until December 2032. The tax credit is taken in the year that you take delivery of the EV.
And the amount of the credit phases out based on your adjusted gross income (AGI). If your AGI is more than $150,000 for a couple filing jointly, $112.500 for head or household, or $75,000 for all others, then the amount of tax credit you get is reduced. The credit is slated to end in 2032.
How to Claim the Credit. To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle's VIN.
Electric vehicles (EVs) have a battery instead of a gasoline tank, and an electric motor instead of an internal combustion engine. Plug-in hybrid electric vehicles (PHEVs) are a combination of gasoline and electric vehicles, so they have a battery, an electric motor, a gasoline tank, and an internal combustion engine.
The complete Tesla Model 3 and Y lineup now qualifies for a full $7,500 federal tax credit for clean cars. On Tuesday, the U.S. EPA officially added all Tesla Model 3 and Model Y variants to its list of tax-credit eligible vehicles.
Hybrids are typically worth the extra expense, especially if you plan on owning your hybrid for more than five years. This is also true for people who commute and put a lot of miles on their vehicles.
The EV tax credit is a federal credit for income taxes owed to the IRS; you must owe enough taxes to take advantage of this opportunity. If you owe no income taxes to the IRS, then you can't benefit from it.
The IRS tax credit for 2022 ranges from $2,500 to $7,500 per new electric vehicle (EV) purchased for use in the U.S. beginning on January 1, 2022. This nonrefundable credit is calculated by a base payment of $2,500, plus an additional $417 per kilowatt hour that is in excess of 5 kilowatt hours.
What is the electric vehicle tax credit? The electric vehicle tax credit, or the EV credit, is a nonrefundable tax credit offered to taxpayers who purchase qualifying electric vehicles or plug-in hybrid vehicles. Nonrefundable tax credits lower your tax liability by the corresponding credit amount.
There is no income limit for the federal solar tax credit, but to claim the full credit, you'll need a significant enough tax liability. If you owe fewer taxes than the credit, the remaining credit will roll over to the following year.
Heat pumps, heat pump water heaters, electric stoves, electric cooktops, electric ranges, electric ovens, and electric heat pump clothes dryers are all eligible for rebates, which vary in amount depending on the product.
To be eligible for the 30% tax credit, an air-source heat pump must be purchased and installed between January 1, 2023, and December 31, 2032, and meet the following criteria: SEER2 rating greater than or equal to 16. EER2 rating greater than or equal to 12. HSPF2 rating greater than or equal to 9.
On January 1, 2023, the Inflation Reduction Act of 2022 qualified certain electric vehicles (EVs) for a tax credit of up to $7,500. Qualifications include: Customers must buy it for their own use, not for resale. Use the vehicle primarily in the U.S.
What are the EV tax credits? To qualify for $3,750 of the EV tax credit, 40% of battery minerals must come from North America, from a country with a U.S. free trade agreement or recycled in North America. That threshold is set to gradually increase to 80% over the next four years.
The used EV tax credit will only apply once in the vehicle's lifetime. Subsequent owners will not be eligible. Once a buyer has taken the federal used EV credit, they are not eligible for another credit for three years. The vehicle must be for personal use and "not for resale."
Is the Kia EV6 eligible for the federal tax credit? Unfortunately, the Kia EV6 is no longer eligible for any federal tax credits from the IRS. The EV6 lost its tax eligibility in 2022 when federal guidelines shifted to exclude vehicles not assembled in North America.
If you're considering buying an electric vehicle (EV), the federal tax credit for EVs could save you money. This credit, called the Qualified Plug-In Electric Drive Motor Vehicle Credit, can provide a potential federal income tax credit of up to $7,500.
What Is Alternative Motor Vehicle Credit. The alternative motor vehicle credit is a tax credit given to individuals who purchase vehicles that derive their power from alternative energy sources.
A nonrefundable tax credit means you get a refund only up to the amount you owe. For example, if you are eligible to take an American Opportunity Tax Credit worth $1,000 and the amount of tax owed is only $800, you can only reduce your taxable amount by $800 – not the full $1,000.
Anyone considering a used electric car under $25,000 could obtain up to a $4,000 tax credit, subject to income and other limits. To qualify, used cars must be at least two model years old. The vehicle also must be purchased at a dealership. The vehicle also only qualifies once in its lifetime.
A tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe. Eligible taxpayers can use them to reduce their tax bill and potentially increase their refund.
A plug-in hybrid is an efficient choice for drivers whose daily trips fall within the electric-only range, but who occasionally need to make longer trips. However, those who cannot charge at home or who drive far beyond a PHEV's electric range on a daily basis are likely to get better value from a regular hybrid.
More expensive to buy. Hybrid cars may be cheaper to run, thanks to their improved fuel economy, but they are also more expensive to buy initially. ...
Maintenance costs. ...
Hybrid batteries can also cost more to replace than a standard car battery.
The main downside of owning a PHEV is that it's likely to have poorer fuel economy than a conventionally-powered alternative when it's driven using the engine rather than the electric motor. This is because you're lugging around the additional weight of its electric battery pack.
Previously, the five-seat Tesla Model Y was classified as a sedan, which meant it didn't qualify for the EV tax credit because it cost more than $55,000 price cap for sedans stipulated under the government's rules.
As a result, the five-seater Model Y's MSRP price cap for tax credit eligibility becomes $55,000, the same category that includes smaller EVs like the compact hatchback Chevy Bolt. And since the Model Y Long Range starts at $65,990, that makes it not currently eligible for the $7,500 credit.
To be eligible, electric vehicles or plug-ins have to be manufactured in North America. SUVs, vans and trucks can't have a sticker price greater than $80,000, while cars can't sticker for more than $55,000. There also are income limits for buyers.
Can you drive a plug-in hybrid even if the battery is not charged? You can definitely drive your plug-in hybrid without a charged battery. Although it is designed as a combustion-assisted electric vehicle, the battery always has some energy stored away thanks to its self-charging technology.
Since hybrids have both regenerative batteries and a fuel engine, both are used proportionally less — meaning both are likely to last longer. Roughly speaking, though, hybrid car drivers can expect to drive their car from anything between 5 and 15 years if suitable maintenance is carried out on them.
Your utility company may also offer rebates when you buy or lease a new electric vehicle. The exact amount will vary, along with the fine print specifying how to receive the rebate. But when you combine federal tax credits, state rebates, and utility rebates, the benefits really start to stack up.
The letter of certification proves that the vehicle you have purchased meets the requirements to claim the federal incentives. This means that it must be a qualifying vehicle that meets the electric vehicle sales threshold set by the IRS.
Regardless of Gas Prices, Some Hybrids Pay for Themselves Immediately. Even as gas prices fall from record levels, car buyers looking to save money on fuel would be wise to consider a hybrid, a new Consumer Reports analysis shows.
The EV tax credit income limit for married couples who are filing jointly is $300,000. And, if you file as head of household and make more than $225,000, you also won't be able to claim the electric vehicle tax credit.
The Biden administration on Tuesday confirmed that all Tesla Model 3 vehicles now qualify for $7,500 electric vehicle consumer tax credits after two of the three versions were eligible for half the credits.
Americans love a Ford pickup truck; it's one of the few constants of the car business. So it was a huge win on Tuesday when Ford's F-150 Lightning became one of just 10 vehicles to qualify for the full $7,500 in tax breaks laid out by the U.S. Inflation Reduction Act.
Does Honda CRV hybrid qualify for tax credit? Honda's CRV hybrid does not qualify for a tax credit because they are not fully electric, and you cannot plug them in.
As part of the 2023 Inflation Reduction Act, eligible businesses and tax-exempt organizations can claim up to a $7,500 credit when purchasing new Tesla vehicles with a gross vehicle weight rating (GVWR) of up to 14,000 pounds. All Tesla passenger vehicles qualify for this incentive: Model S.
The credit is non-refundable, meaning you must have a tax due as calculated from your taxable income reported on your tax return, after accounting for other tax credits. Payments from federal tax withholding from your paycheck and estimated tax payments go toward paying this tax liability and may get refunded to you.
The $7,500 tax credit is actually two separate credits, worth $3,750 each. Before April 18 every qualifying vehicle got both credits, but now vehicles can qualify for neither, one, or both.
Insurance for an electric car may cost more than insurance for a regular gas-powered car. An electric car's higher price tag and more complex equipment means it may cost more to repair or replace if it's in an accident. That can mean higher rates for policyholders who carry comprehensive and collision coverage.
Nissan Leaf owners should expect it to last around ten years. Depending on which model of the EV you own, you should be able to get between 84 - 145 miles from each charge. Lithium-ion batteries in EVs slowly degrade over time, and with each charging cycle, they get a little worse.
You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.
The Ford F-150 Lightning displayed at the Philadelphia Auto Show. The electric pickup truck is one of just 10 models of electric and plug-in hybrid models that will qualify for the full $7,500 tax credit under President Biden's new EV rules.
Buyers of the F-150 Lightning, as well as the Lincoln Aviator Grand Touring plug-in hybrid, will be eligible for $7,500 worth of tax credits, with other models qualifying for half that amount, the automaker said April 5. That will help defray the cost of EVs, which tend to cost more than gasoline-powered vehicles.
Introduction: My name is Aracelis Kilback, I am a nice, gentle, agreeable, joyous, attractive, combative, gifted person who loves writing and wants to share my knowledge and understanding with you.
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