Buying An EV in 2025? Here’s Every Model That Is Currently Eligible for the Federal Tax Credit

Thanks to tightening requirements around manufacturing battery packs, the list is shorter than it was at the end of 2024

(Image: Tesla)

If you’re shopping for a new EV, the list of models eligible for the $7,500 EV tax credit is shorter than last year…at least for now.

For the past 2-1/2 years, the Inflation Reduction Act signed into law by former President Joe Biden has dictated which new electric vehicles are eligible for up to a $7,500 tax incentive. Lawmakers geared the bill toward automakers prioritizing American manufacturing for EVs, and particularly for their all-important battery packs, as well as the critical minerals that comprise their chemistry. Year-over-year, the percentage requirement for what percentage of components have to be manufactured within North America ratchets up, and as it does certain models may lose their eligibility for the tax credit. As a result, buyers may not have a federally-backed incentive to shave thousands of dollars off their electric car purchase, unless the manufacturer directly subsidizes the purchase on its own.

Even with more choice in new EVs than we’ve seen these past several years, the list has (again) shrunk as some EVs fall off the list. It’s worth noting their omission may only be temporary — with the Volkswagen ID.4 being a classic case in point — and those cars may end up back on the eligibility list as manufacturers and suppliers scramble to source more vital components within North America’s borders, as the law intended to compel companies to do.

As of 2025, there are four main pillars to a vehicle’s eligibility to receive up to a $7,500 tax credit:

  • Final assembly for the whole vehicle has to happen within North America;
  • 60% of the core battery components have to be sourced within North America (same as 2024);
  • 60% of critical minerals making up the battery pack chemistry have to be sourced within North America or from a country with whom the U.S. has a free trade agreement (up from 50% in 2024), and;
  • Neither battery components nor critical minerals can come from a “foreign entity of concern” (i.e. a trade adversary like China)
    • Last year, that requirement only applied to battery components, and not critical minerals

The North American final assembly requirement is a simple pass/fail, so even if an automaker were to somehow source battery components within the continent, it cannot then assemble those vehicles overseas.

Federal EV tax incentives are also means-tested by a vehicles Manufacturer’s Suggested Retail Price (MSRP). If a passenger car (i.e. Tesla Model 3) is over $55,000 MSRP or a truck or SUV is over $80,000 (i.e. Ford F-150 Lightning, Mustang Mach-E, Tesla Model Y), that vehicle does not qualify. Adjusted gross annual income (AGI) for individuals claiming the tax credit also cannot exceed $150,000 for individuals, $225,000 for heads of households or $300,000 for joint filing couples.

List of EVs eligible for the Federal EV Tax Credit

Per the U.S. Department of Energy, these are the vehicles currently eligible for the federal tax credit, provided they were purchased (or “placed in service”) after January 1, 2025.

Full $7,500 credit:

  • Acura ZDX
  • Cadillac Lyriq
  • Cadillac Optiq
  • Chevrolet Blazer EV
  • Chevrolet Equinox EV
  • Chevrolet Silverado EV
  • Chrysler Pacifica PHEV
  • Ford F-150 Lightning (XLT Extended Range, Flash or Lariat trims only)
  • Honda Prologue
  • Jeep Wagoneer S
  • Kia EV6
  • Kia EV9
  • Tesla Cybertruck (Single- and Dual-Motor only; not the Cyberbeast)
  • Tesla Model 3
  • Tesla Model X
  • Tesla Model Y

At the moment, there are no EVs for sale that are eligible for a partial $3,750 tax credit. Long-standing models like the Nissan Leaf fell off the list for eligibility, while others like the Chevrolet Bolt are no longer available because the vehicle itself is out of production. The Volkswagen ID.4 and all Rivians are currently out of eligibility, and some EVs like the Ford Escape Plug-in Hybrid, Lincoln Corsair Plug-in Hybrid and the Jeep Wrangler/Grand Cherokee 4xe cannot get a tax credit right now.

The situation is certainly fluid, as automakers continue to work toward compliance with the IRA. The new Trump administration has also expressly signaled its intent through both rhetoric and executive action to scrap pro-EV policies, including pulling funding from electric vehicle charging networks. However, at time of writing, orders have not extended to the tax credit itself, as it would likely take an act of Congress to repeal the existing tax credit, as it’s baked into the Inflation Reduction Act.