Two years ago, nearly every new electric vehicle and plug-in hybrid on the market qualified for a federal tax credit of up to $7,500, provided it was manufactured in North America. But the rules changed in a major way in 2024, and then again for 2025. The new year brings big restrictions on which EVs and hybrids get the tax break as the U.S. looks to crack down on battery components sourced from China.
In other words, if you were banking on a tax credit to help get you into a new electric vehicle or plug-in hybrid for 2025, your list of choices is now smaller and less straightforward than before. Still, $7,500 is serious money. It could make the difference between buying and not buying an electric car—so it’s key to which vehicles are eligible for the tax credit for EVs in 2025.
Plus, as automakers launch new models and change up their supply chains to comply with the new rules over time, we should see many more cars qualify. We’ll keep an eye on the news and update this list accordingly, so make sure to check back regularly to see what’s eligible and what’s not.
Eligible Vehicles For The EV Tax Credit In 2025
At the beginning of this year, well-known models like the Volkswagen ID.4 and Rivian R1S are out. Meanwhile, the Cadillac Optiq, Hyundai Ioniq 5, Kia EV6 and Tesla Cybertruck are in. We have a separate article with all the cars that are no longer eligible for the federal tax credit this year if you want to know more.
Here’s the full list of eligible EVs from FuelEconomy.gov, where you can also check if a certain car qualifies from its VIN:
| Make | Model | Model Year | Credit Amount | MSRP Limit |
| Acura | ZDX | 2024-2025 | $7,500 | $80,000 |
| Cadillac | Lyriq (Luxury and Sport models) | 2024-2025 | $7,500 | $80,000 |
| Cadillac | Optiq | 2025 | $7,500 | $80,000 |
| Chevrolet | Blazer EV (LT, RS and SS models) | 2024-2025 | $7,500 | $80,000 |
| Chevrolet | Equinox EV (LT and RS models) | 2024-2025 | $7,500 | $80,000 |
| Chevrolet | Silverado EV (LT model) | 2025 | $7,500 | $80,000 |
| Ford | F-150 Lightning Flash | 2024–2025 | $7,500 | $80,000 |
| Ford | F-150 Lightning Lariat | 2023-2025 | $7,500 | $80,000 |
| Ford | F-150 Lightning XLT | 2023–2025 | $7,500 | $80,000 |
| Genesis | Electrified GV70 | 2025 | $7,500 | $80,000 |
| Honda | Prologue | 2024-2025 | $7,500 | $80,000 |
| Hyundai | Ioniq 5 | 2025 | $7,500 | $80,000 |
| Hyundai | Ioniq 9 | 2025 | $7,500 | $80,000 |
| Kia | EV6 | 2026 | $7,500 | $80,000 |
| Kia | EV9 | 2026 | $7,500 | $80,000 |
| Tesla | Cybertruck Dual Motor | 2025 | $7,500 | $80,000 |
| Tesla | Cybertruck Single Motor | 2025 | $7,500 | $80,000 |
| Tesla | Model 3 Long Range All-Wheel Drive | 2025 | $7,500 | $55,000 |
| Tesla | Model 3 Long Range Rear-Wheel Drive | 2025 | $7,500 | $55,000 |
| Tesla | Model 3 Performance | 2025 | $7,500 | $55,000 |
| Tesla | Model X All-Wheel Drive | 2025 | $7,500 | $80,000 |
| Tesla | Model Y Long Range All-Wheel Drive | 2025 | $7,500 | $80,000 |
| Tesla | Model Y Long Range Rear-Wheel Drive | 2025 | $7,500 | $80,000 |
| Tesla | Model Y Performance | 2025 | $7,500 | $80,000 |
And here’s the list of qualifying plug-in hybrids in 2025:
| Make | Model | Model Year | Credit Amount | MSRP Limit |
| Chrysler | Pacifica PHEV | 2024-2025 | $7,500 | $80,000 |
The longstanding EV tax credit was revised and modernized as part of the Inflation Reduction Act, which passed in 2022. That legislation had a number of goals—including possibly conflicting ones—like encouraging local manufacturing and lessening China’s iron grip on the battery supply chain. (The tax credits also have limits based on a buyer’s annual income and the price of the vehicle in question to keep these from just being luxury gifts to wealthy drivers.)
The new credits went into effect in January of 2023. But over the subsequent months, the list of qualifying vehicles became narrower and narrower, prioritizing batteries and battery components made in North America as well. Now, the rules stipulate that starting in 2024 any vehicle containing battery components from what the government calls a “foreign entity of concern” will be excluded from receiving tax credits. The so-called “FEOC” rules pretty much directly target China, and given that country’s utter dominance of the battery supply chain, a lot of new cars get left out.
On the plus side, it’s crucial to note that leasing will still get you the full tax credit regardless of where the car was made, a loophole that has greatly benefitted foreign manufacturers like Kia and Hyundai. Additionally, the credits now apply at the point of sale, meaning you get an instant price cut on these cars without having to wait for tax season.
Those point-of-sale rebates have proved mighty popular. Last year, EV buyers received over $1 billion in incentives for some 150,000 car purchases, according to the U.S. Treasury Department.
Contact the author: patrick.george@insideevs.com
(This guide was last updated on January 3, 2025)
