U.S. Treasury Department Offers Up to $7,500 in Tax Credits for Electric Vehicle Purchases as Part of Inflation Reduction Act

The U.S. Treasury Department has released new rules regarding electric vehicle tax credits, offering up to $7,500 in credits for certain models. The new tax credits, which are part of the Inflation Reduction Act, are designed to encourage more Americans to purchase eco-friendly vehicles.

Sixteen new models and some of their variations are eligible for the full $7,500 federal tax credit, while some gas-electric hybrid vehicles will be eligible for half the tax credit — or $3,750. Nine models — mostly foreign-made vehicles — are no longer eligible, for now.

General Motors, Ford, Stellantis and Tesla are the only four automakers with electric vehicles that qualify for the full $7,500 tax credit this year. Consumers who purchase certain pre-owned electric vehicles this year can also get a $4,000 credit.

The following electric vehicles qualify for the full $7,500 federal tax credit: Cadillac Lyriq, Chevrolet Blazer, Chevrolet Bolt & Bolt EUV, Chevrolet Equinox, Chevrolet Traverse, Chevrolet Tahoe, GMC Yukon, GMC Yukon XL, GMC Terrain, GMC Acadia, Hyundai Kona, Hyundai Ioniq, Kia Niro, Kia Soul, and Tesla Model 3, Model S, and Model X.

The new tax credits are set to last until 2032 and are a great way for Americans to save money while also helping the environment. Consumers should be sure to check if their vehicle is eligible for the tax credit before making a purchase.