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Federal Tax Credits for All-Electric and Plug-in Hybrid Vehicles

Federal Tax Credit Up To $7,500!

All-electric and plug-in hybrid cars purchased in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to power the vehicle. State and/or local incentives may also apply.

Small neighborhood electric vehicles do not qualify for this credit, but they may qualify for another credit.

Filter table by…

Vehicle Type

OR

Vehicle Make & Model Vehicle Type Full Credit Phase Out
50% 25%
AMP Electric Vehicles 1/1/10 to Present TBD TBD
2012 GCE Electric Vehicle
GCE Electric Vehicle $7,500
2012 MLE Electric Vehicle
MLE Electric Vehicle $7,500
BMW 1/1/10 to Present TBD TBD
2014–16 i3 Sedan
2014 BMW i3 Sedan $7,500
2014–16 i3 Sedan w/ Range Extender
BMW i3 Sedan w/ Range Extender $7,500
2014–16 i8
BMW i8 $3,793
2016 X5 xDrive40e
BMW X5 xDrive40e $4,668
BYD Motors 1/1/10 to Present TBD TBD
2012–15 e6 Electric Vehicle
e6 Electric Vehicle $7,500
CODA Automotive 1/1/10 to Present TBD TBD
2010, 2012 CODA Sedan
CODA Sedan $7,500
Electric Mobile Cars 1/1/10 to Present TBD TBD
2010 E36 7 Passenger Wagon
E36 7 Passenger Wagon $7,500
2010 E36t Pick-up Truck
E36t Pick-up Truck $7,500
2010 E36v Utility Van
E36v Utility Van $7,500
Fiat 1/1/10 to Present TBD TBD
2013–16 Fiat 500e
Fiat 500e $7,500
Fisker 1/1/10 to Present TBD TBD
2012 Fisker Karma Sedan
Fisker Karma $7,500
Ford 1/1/10 to Present TBD TBD
2012–16 Ford Focus EV
Ford Focus EV $7,500
2013–16 Ford C-Max Energi
Ford C-Max Energi $4,007
2013–16 Ford Fusion Energi
Ford Fusion Plug-in Hybrid $4,007
Ford/Azure Dynamics 1/1/10 to Present TBD TBD
2011–12 Transit Connect EV
Azure Dynamics Transit Connect $7,500
General Motors 1/1/10 to Present TBD TBD
2014–16 Chevrolet Spark EV
Chevrolet $7,500
2014, 2016 Cadillac ELR
Cadillac ELR $7,500
2011–17 Chevrolet Volt
Chevrolet Volt $7,500
Honda 1/1/10 to Present TBD TBD
2014 Honda Accord Plug-in Hybrid
Honda Accord Plug-in Hybrid $3,626
Hyundai 1/1/10 to Present TBD TBD
2016 Sonata Plug-in Hybrid
Hyundai Sonata Plug-in Hybrid $4,919
Kia 1/1/10 to Present TBD TBD
2015–16 Kia Soul Electric
Chevrolet $7,500
Mercedes-Benz 1/1/10 to Present TBD TBD
2014–15 B-Class EV
B-Class EV $7,500
2015 S500e
S500e Plug-in Hybrid $4,042.90
Mitsubishi 1/1/10 to Present TBD TBD
2012, 2014, 2016 i-MiEV
Mitsubishi i-MiEV $7,500
Nissan 1/1/10 to Present TBD TBD
2011–16 Leaf
Nissan Leaf $7,500
Porsche 1/1/10 to Present TBD TBD
2015 Porsche Cayenne S E-Hybrid
Porsche Cayenne S E-Hybrid $5,335.60
2014–15 Porsche Panamera S E-Hybrid
Porsche Panamera S E-Hybrid $4,751.80
2015 Porsche 918 Spyder
Porsche 918 Spyder $3,667
smart USA 1/1/10 to Present TBD TBD
2011, 2013–16 fortwo electric vehicle (all)
smart fortwo electric vehicle $7,500
Tesla Motors 1/1/10 to Present TBD TBD
2012–15 Model S
Tesla Model S $7,500
2008–11 Roadster
Tesla Roadster $7,500
Think 1/1/10 to Present TBD TBD
2011 Think City EV
Think City EV $7,500
Toyota 1/1/10 to Present TBD TBD
2012–14 RAV4 EV
Toyota RAV4 EV $7,500
2012–15 Toyota Prius Plug-in Hybrid
Toyota Prius Plug-in Hybrid $2,500
VIA Motors 1/1/10 to Present TBD TBD
2014 2500 Extended Range Electric Passenger Van
No photo $7,500
2014 1500 Extended Range Electric Truck 4WD (All body styles)
No photo $7,500
2014 2500 Extended Range Electric Cargo Van
No photo $7,500
2014 1500 Extended Range Electric Truck 2WD (All body styles)
No photo $7,500
Volkswagen 1/1/10 to Present TBD TBD
2015–16 e-Golf
Volkswagen e-Golf $7,500
Volvo 1/1/10 to Present TBD TBD
2016 XC-90 T8 Twin Engine Plug in Hybrid
Volvo XC-90 T8 Twin Engine Plug in Hybrid $4,585
Wheego 1/1/10 to Present TBD TBD
2011 LiFe
Wheego LiFe $7,500

Qualified Plug-In Electric Drive Motor Vehicles (IRC 30D)

To be certified for the credit by the manufacturer, the vehicle must meet the following requirements:

  • The vehicle must be made by a manufacturer (i.e., it doesn't include conventional vehicles converted to electric drive).
  • It must be treated as a motor vehicle for purposes of title II of the Clean Air Act.
  • It must have a gross vehicle weight rating (GVWR) of not more than 14,000 lbs.
  • It must be propelled to a significant extent by an electric motor which draws electricity from a battery which
    • has a capacity of not less than 4 kilowatt hours and
    • is capable of being recharged from an external source of electricity.

The following requirements must also be met for a certified vehicle to qualify:

  • The original use of the vehicle commences with the taxpayer—it must be a new vehicle.
  • The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.)
  • The vehicle is used mostly in the United States.
  • The vehicle must be placed in service by the taxpayer during or after the 2010 calendar year.

The credit begins to phase out for vehicles at the beginning of the second calendar quarter after the manufacturer has sold 200,000 eligible plug-in electric vehicles (i.e., plug-in hybrids and EVs) in the United States as counted from January 1, 2010. IRS will announce when a manufacturer exceeds this production figure and will announce the subsequent phase out schedule (Plug-In Electric Drive Motor Vehicle Credit Quarterly Sales).

Diagram illustrating phaseout

Fill out Form 8936Adobe Acrobat Icon, Qualified Plug-in Electric Drive Motor Vehicle Credit.

For vehicles acquired for personal use, report the credit from Form 8936Adobe Acrobat Icon on the appropriate line of your Form 1040, U.S. Individual Income Tax ReturnAdobe Acrobat Icon.

For vehicles purchased in 2010 or later, this credit can be used toward the alternative minimum tax (AMT).

If the qualifying vehicle is purchased for business use, the credit for the business use of an electric vehicle is reported on Form 3800Adobe Acrobat Icon, General Business Credit.

DISCLAIMER

The information on this page should not be viewed as an official or legally binding document. Other requirements or exceptions may apply. For more detailed information, please consult an IRS tax representative and/or official IRS publications.