Plug-In Hybrid and EV Tax Credits

Claim a federal tax credit of up to $7,500 for purchasing a new hybrid or electric vehicle (EV). Electric vehicle and hybrid sales have been steadily increasing since their creation; consider this tax incentive to make the move from gas to an electric powered automobile. The hybrid and electric vehicle tax credit can lower your taxes!

Can You Get Money Back for an EV or Hybrid?

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Important: As part of the Inflation Reduction Act, both plug-in hybrids and electric vehicles got a reworked credit for current and future purchases through 2032. Get the details here: Clean Vehicle Tax Credit for EVs and Hybrids.

If you purchase a qualifying plug-in hybrid or electric vehicle, you may be able to claim a federal tax. The credit has been reworked, but the details below can be used for informational purposes.

Frequently Asked Questions

What is the Hybrid and EV Tax Credit?

If you purchased a plug-in hybrid motor vehicle, you may qualify for a credit on your tax return. This tax credit is nonrefundable, meaning it can only reduce your tax liability.

  • Up to $7,500 for eligible vehicles.
  • Nonrefundable: It won't increase your refund.
  • Can be claimed up front via the Clean Vehicle Credit.

To qualify, your vehicle must:

  • Weigh less than 14,000 pounds.
  • Have a battery capacity of at least 5 kilowatt hours.
  • Be purchased new.

Only plug-in hybrids qualify. Traditional hybrids like the non-plug-in models of Toyota Prius and RAV4 Hybrid do not qualify.

  • Credit ranges from $2,500 to $7,500 based on battery power.
  • Does not generate a tax refund on its own.
  • Also applicable to certain two-wheeled vehicles (up to $2,500).

Refer to the table below and visit the current year EV tax credit page for eligibility details.

For e-filing your tax return, eFile.com simplifies the process. Answer a few questions, and the app will select the appropriate forms and calculate your credit.

  • Plug-in hybrids must use battery energy before gasoline.
  • Some states offer additional incentives, like California’s $7,000 rebate.
  • Business vehicles can use Form 3800 for credits; individual credits do not carry forward.

When filing, the eFile app will help claim the Clean Vehicle Credit on Form 8936 - eFileIT.

What Vehicles Are Eligible for the Credit Before 2023?

Important: The details and information below apply to the original credit for returns prior to 2023 called the Plug-In Electric Drive Motor Vehicle Credit. The remainder of this page is geared towards the pre-2023 credit for EVs and hybrids. Get the details on the current year EV and hybrid tax credit page.

The following plug-in hybrids, according to the IRS, are eligible for the Qualified Plug-In Electric Drive Motor Vehicle Tax Credit. General Motors and Tesla vehicles are generally not eligible for the tax credit. The amounts vary based on the power storage capability of the battery.

Note: The phaseout threshold applies only to vehicles purchased before 2023.

This credit may start to phase out once a company has sold 200,000 qualifying vehicles. Cadillac, General Motors, and Tesla were the only companies to reach this threshold for plug-in hybrids (GM) and plug-in electric vehicles (Tesla). Thus, these hybrid and electric vehicles purchased in 2022 and prior are not eligible for a tax credit. For vehicles purchased after 2023, the phaseout no longer applies. The phaseout period begins by allowing taxpayers to claim 50% of the credit if the purchasing of the vehicle took place in the first two quarters since the phaseout initiated. From there, 25% of the credit can be claimed for the second two quarters. See General Motors in the table below to see an example of these amounts.

Make
Model(s)
Tax Credit
American Honda Motor Co., Inc.
Accord Plug-In Hybrid (2014)
$3,626
American Honda Motor Co., Inc.
Clarity Plug-In Hybrid (2018-2021)
$7,500
Audi of America, LLC
A3 e-tron (Ultra) (2016-2018)
$4,502
Audi of America, LLC
A8L PHEV (2020); Q5 PHEV;
Q5 TFSI e Quattro (2020),
A7 55 TFSI e Quattro (2021)
$6,712
Audi of America, LLC
A7 & Q5 TFSI e Quattro (2022),
$7,500
Bentley
Bentayga Hybrid (2020 - 2021)
$7,500
BMW of America
i3(s) Sedan (2014-2021); X5 xDrive45e (2021);
$7,500
BMW of America
i8 Coupe (2019, 2020); i8 Roadster (2019, 2020)
$5,669
BMW of America
i8 (2014-2020)
$3,793
BMW of America
X5 xDrive40e (2016-2018)
$4,668
BMW of America
330e (2016-2018);
MINI Cooper S E Countryman ALL4 (2018-2019)
$4,001
BMW of America
530e (xDrive) (2018, 2019); 740e (xDrive) (2018, 2019)
$4,668
BMW of America
745e xDrive (2020-2021); 530e (xDrive) (2020-2021);
330e (xDrive) (2021); X3 xDrive30e (2020-2021)
$5,836
BMW of America
MINI Cooper S E Countryman ALL4 (2020-2022)
$5,002
FCA (Fiat, Chrysler Automobiles) North America Holding, LLC.
Chrysler Pacifica PHEV (2017-2021)
$7,500
Ferrari
SF90 Stradale (2020-2021)
$3,501
Fisker Automotive
Karma Sedan (2012)
$7,500
Ford Motor Company
C-MAX Energi (2013-2017); Fusion Energi (2013-2018)
$4,007
Ford Motor Company
Fusion Energi (2019-2020)
$4,609
Ford Motor Company; Lincoln
Ford Escape Plug-in Hybrid (2020-2021);
Lincoln Corsair (Reserve) Grand Touring (2021-2022)
$6,834
Ford Motor Company; Lincoln
Lincoln Aviator Grand Touring (2020-2021)
$6,534
General Motors, LLC.
Chevrolet Volt (2011-2019);
Cadillac ELR (2014, 2016);
Cadillac CT6 Plug-In (2017-2018)
*$7,500 if acquired through 3/31/2019;
$3,750 (4/1/2019 - 9/30/2019);
$1,875 (10/1/2019 - 3/31/2020)
Hyundai
Ioniq EPlug-In Hybrid Electric Vehicle (2018-2021)
$4,543
Hyundai
Sonata Plug-in Hybrid Electric Vehicle (2016-2019)
$4,919
Hyundai
Tucson Plug-in Hybrid (2022); Santa Fe Plug-in Hybrid (2022)
$7,500
Jaguar Land Rover North America, LLC.
Land Rover Range Rover (Sport) PHEV (HSE) (2019)
$7,087
Jaguar Land Rover North America, LLC.
Range Rover (Sport, SE, Autobiography models) PHEV (2023);
$7,500
Jaguar Land Rover North America, LLC.
Range Rover (Sport, HSE, Autobiography models) PHEV (2020 - 2022);
$6,295
Jeep
Jeep Wrangler 4xe PHEV (2021)
$7,500
Karma
Revero (2018)
$7,500
Kia Motors America, Inc.
Optima Plug-In Hybrid (2017-2021)
$4,919
Kia Motors America, Inc.
Niro Plug-In Hybrid (2018-2022)
$4,543
Kia Motors America, Inc.
Sorento Plug-In Hybrid (2022)
$6,587
Lexus, Toyota Inc.
NX Plug-In Hybrid (2022)
$7,500
McLaren LLC
Artura (2022)
$4,585
Mercedes-Benz USA, LLC
S550e PHEV (2015-2017);
GLE550e 4m PHEV (2016-2018);
GLC350e 4M PHEV (2018-2019)
$4,460 (revised 1/24/2018)
Mercedes-Benz USA, LLC
C350e PHEV (2016-2018)
$3,501 (revised 1/24/2018)
Mercedes-Benz USA, LLC
GLC 350 4M EQ (2020);
S560e EQ PHEV (2020)
$6,462
Mitsubishi Motors North America, Inc.
Outlander PHEV (2018-2020)
$5,836
Mitsubishi Motors North America, Inc.
Outlander PHEV (2021)
$6,587
Polestar Automotive USA Inc.
Polestar 1 (2020)
$7,500
Porsche Cars North America, Inc.
918 Spyder (2015)
$3,667
Porsche Cars North America, Inc.
Cayenne S E-Hybrid (2015-2018)
$5,336
Porsche Cars North America, Inc.
Cayenne E-Hybrid (Coupe) (2019-2020);
Panamera 4 PHEV (all models) (2019-2020)
$6,712
Porsche Cars North America, Inc.
Panamera S E-Hybrid (2014-2016)
$4,752
Porsche Cars North America, Inc.
Panamera 4 PHEV (all models) (2018)
$6,670
Porsche Cars North America, Inc.
Panamera 4 PHEV (all models) (2021-2022)
$7,500
Subaru
Crosstrek Hybrid (2019-2021)
$4,502
Toyota Motor Sales, U.S.A., Inc.
Prius Plug-in Hybrid (2012-2015)
$2,500
Toyota Motor Sales, U.S.A., Inc.
Prius Prime Plug-in Hybrid (2017-2021)
$4,502
Toyota Motor Sales, U.S.A., Inc.
RAV4 Prime Plug-In Hybrid (2021)
$7,500
VIA Motors, Inc.
2500 Extended Range Electric Passenger Van (2014);
VIA 1500 Extended Range Electric Truck 4WD (all body styles) (2014);
2500 Extended Range Electric Cargo Van (2014);
1500 Extended Range Electric Truck 2WD (All body styles) (2014)
$7,500
Volvo Cars of North America, LLC
S60 (2019); XC60 (2018-2019);
S90 (2018-2019);
XC90 (Excellence) (2018-2019)
$5,002
Volvo Cars of North America, LLC
S60 (2020-2021); S90 (2020-2021); V60 (2020-2021);
XC60 (2020-2021); XC90 (2020-2021)
$5,419
Volvo Cars of North America, LLC
XC90 (2016-2017)
$4,585
Volvo Cars of North America, LLC
S60, S90, V60, XC60, & XC90 Extended Range (2022)
$7,500

*Companies who have initiated phasing out indicate different, decrementing values based on the year purchased. Only General Motors and Tesla (electric vehicles only) finished this process. See a list of all qualifying electric vehicles.

Do you own or want to invest in any of these vehicles? Make sure you get the most out of your investment when you file your taxes. Claim the credit via Form 8936 and eFileIT on eFile.com. Start your return now - see how eFile.com compares to TurboTax® or H&R Block®.

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