- Several electric and plug-in hybrid vehicles are no longer eligible for a federal tax credit in 2025.
- The Chevrolet Bolt EV, Nissan Leaf Rivian R1S and Volkswagen ID.4 are among the affected cars.
This year has kicked off with a significant reshuffle of the electric and plug-in hybrid vehicles that are eligible for a federal tax credit of up to $7,500 when purchasing. Politics might make the incentive go away, but as it stands today, it’s still around and kicking, so if you’re in the market for a new battery-powered car, we have also have an updated list with all the care that are eligible for the federal tax credit.
Venerable nameplates like the Nissan Leaf and Chevrolet Bolt are out of the picture, and so are the more expensive Rivian R1S and R1T. The Volkswagen ID.4, the German automaker’s U.S.-built crossover and one of the biggest rivals for the massively popular Tesla Model Y, has also lost eligibility. Meanwhile, in the realm of plug-in hybrids, the impact is so large that the list of eligible models has gone from seven models last year to just one at the beginning of the 2025.
For what it’s worth, the both the Chevrolet Bolt EV and Bolt EUV have been out of production for over a year, so it was just a matter of time until the inventory ran out. It’s a similar story for Rivian‘s passenger EVs, which got a major refresh under the skin last year. However, neither the 2025 R1S nor the 2025 R1T are eligible now, leaving potentially eligible customers to foot the whole bill.
The same goes for the aging Nissan Leaf, which was eligible for a partial tax credit last year but now it’s no longer on the list.
| Make | Model | Model Year | Credit Amount | MSRP Limit |
| Chevrolet | Bolt EV | 2022-2023 | $7,500 | $55,000 |
| Chevrolet | Bolt EUV | 2022-2023 | $7,500 | $55,000 |
| Nissan | Leaf S | 2024 | $3,750 | $55,000 |
| Nissan | Leaf SV Plus | 2024 | $3,750 | $55,000 |
| Rivian | R1S Dual Large | 2023-2024 | $3,750 | $80,000 |
| Rivian | R1S Dual Standard | 2024 | $3,750 | $80,000 |
| Rivian | R1S Dual Standard+ | 2024 | $3,750 | $80,000 |
| Rivian | R1S Performance Dual Standard+ | 2024 | $3,750 | $80,000 |
| Rivian | R1S Quad Large | 2022-2024 | $3,750 | $80,000 |
| Rivian | R1T Dual Large | 2023-2025 | $3,750 | $80,000 |
| Rivian | R1T Dual Max | 2023-2024 | $3,750 | $80,000 |
| Rivian | R1T Dual Performance Large | 2023 | $3,750 | $80,000 |
| Rivian | R1T Dual Standard | 2024 | $3,750 | $80,000 |
| Rivian | R1T Dual Standard+ | 2024 | $3,750 | $80,000 |
| Rivian | R1T Performance Dual Standard+ | 2024 | $3,750 | $80,000 |
| Rivian | R1T Quad Large | 2022-2024 | $3,750 | $80,000 |
| Volkswagen | ID.4 AWD Pro | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 AWD Pro S | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 AWD Pro S Plus | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Pro | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Pro S | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Pro S Plus | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 S | 2023-2024 | $7,500 | $80,000 |
| Volkswagen | ID.4 Standard | 2023-2024 | $7,500 | $80,000 |
And here are all the plug-in hybrid models that are no longer eligible for a federal tax credit this year. The Jeep Wrangler 4xe and the Jeep Grand Cherokee 4xe, America’s best-selling PHEVs, are out. As of this writing, the only PHEV that is still eligible for a tax credit is the Chrysler Pacifica minivan.
| Make | Model | Model Year | Credit Amount | MSRP Limit |
| Audi | Q5 PHEV 55 TFSI e quattro | 2023-2024 | $3,750 | $80,000 |
| Audi | Q5 S Line 55 TFSI e quattro | 2023-2024 | $3,750 | $80,000 |
| Ford | Escape Plug-in Hybrid | 2022-2025 | $3,750 | $80,000 |
| Jeep | Grand Cherokee PHEV 4xe | 2022-2024 | $3,750 | $80,000 |
| Jeep | Wrangler PHEV 4xe | 2022-2024 | $3,750 | $80,000 |
| Lincoln | Corsair Grand Touring | 2022-2024 | $3,750 | $80,000 |
Things might change in the following months. More cars could lose eligibility of the federal tax credit, or the incentive might be dropped altogether, we don’t know. There is a lot of uncertainty regarding EVs in general, but industry experts seem confident that sales will go up significantly during 2025–with or without incentives. It’s also worth noting that the tax credit may still apply when leasing, thanks to a loophole that allows manufacturers based outside the United States to offer it.
