Check eligibility for the $7,500 federal EV tax credit (IRA 2022): income limits ($150K single, $300K MFJ), MSRP cap ($55K cars / $80K SUVs+trucks), battery sourcing, North American assembly.
Detailed instructions, formula notes, and US-context guidance shown in the calculator above.
Disclaimer: Estimate only. Consult a qualified professional for decisions with major financial, legal, or health consequences.
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Calculator information
📋 How to use this calculator
- Enter the EV's MSRP and select vehicle class (car ≤ $55K cap; SUV/truck/van ≤ $80K cap).
- Select filing status and enter MAGI for the lesser of current or prior tax year.
- Confirm battery component sourcing (50% from US/FTA partner in 2026) and critical mineral sourcing.
- Select whether the dealer transferred the credit at point-of-sale (cash off MSRP).
- Review eligibility, credit amount ($3,750 components + $3,750 minerals = up to $7,500), and net cost.
- Used EVs: separate $4,000 credit (or 30% of price), $25,000 price cap, $75K/$112.5K/$150K MAGI cap.
🧮 IRA Section 30D New Clean Vehicle Credit
Credit = (Critical_minerals_met ? $3,750 : 0) + (Battery_components_met ? $3,750 : 0)
- Vehicle MSRP ≤ $55,000 (car) or $80,000 (SUV, pickup, van)
- Final assembly in North America
- Taxpayer MAGI ≤ $150K single / $225K HOH / $300K MFJ (current OR prior year)
- Battery: 60% of components from US/FTA partner in 2026 (rising 5%/yr)
- Critical minerals: 50% sourced from US/FTA partner in 2026 (rising)
Point-of-sale transfer (since 2024): dealer applies credit as cash off price, no need to wait for tax filing. Recapture if MAGI exceeds threshold both years.
💡 Worked example: Tesla Model Y purchase, Single filer earning $130K
Given:- Vehicle: 2026 Tesla Model Y Long Range AWD
- MSRP: $51,990 (under $80K SUV cap)
- Final assembly: Fremont, CA (qualifies)
- MAGI: $130,000 (under $150K single cap)
- Battery sourcing: meets both 60% components + 50% minerals
Steps:- Vehicle eligibility: Yes (NA final assembly, under SUV MSRP cap)
- Income eligibility: Yes ($130K < $150K single)
- Credit = $3,750 (minerals) + $3,750 (components) = $7,500 full
- Point-of-sale option: dealer applies $7,500 off → buyer pays $44,490
- Or claim on Form 8936 at tax filing for $7,500 refund/reduction
Result: $7,500 federal tax credit — effective vehicle cost $44,490 instead of $51,990. State rebates may stack (CA CVRP up to $2,000, CO up to $5,000).
❓ Frequently asked questions
Can I claim the credit if I lease an EV?
Indirectly — the LEASING COMPANY claims the $7,500 commercial clean vehicle credit (Section 45W) and typically passes the savings into the lease as a 'EV lease incentive' or reduced money factor. Section 45W has NO income cap and NO MSRP cap, so leases of foreign-made or expensive EVs (which don't qualify under 30D) often still get $7,500 off via this loophole. Negotiate the credit transparently.
What happens if my income spikes above the cap this year?
If MAGI exceeds the cap in BOTH the current AND prior tax year, you must repay (recapture) the credit. If you exceed in only one year, you keep the credit. The IRS uses the LOWER of the two years' MAGI for eligibility — plan timing around bonuses or capital gains.
Which EVs currently qualify for the full $7,500?
As of mid-2026: Tesla Model 3, Model Y, Cybertruck (qualifying configs); Chevy Equinox EV, Blazer EV; Ford F-150 Lightning, Mustang Mach-E (select trims); Honda Prologue; Cadillac Lyriq; Volkswagen ID.4 (US-built); some Hyundai/Kia configs after their new Georgia plant ramped. FuelEconomy.gov maintains the official list — it changes mid-year as manufacturers shift battery sourcing.
Can I take both the federal credit and my state EV rebate?
Yes, in nearly all cases — state EV rebates are administered separately and stack with the federal credit. Top stacks: California CVRP ($2,000-7,500 base + low-income bonus up to $9,500), Colorado ($5,000 + $2,500 if traded gas car), Massachusetts MOR-EV ($3,500-4,500), New Jersey Charge Up ($2,000-4,000). Stacked savings can exceed $12,000 in CA/CO.
Used EV credit — how does it differ from new?
Used EV credit (Section 25E): $4,000 OR 30% of price, whichever is less. Price cap $25,000. MAGI caps lower: $75K single / $112.5K HOH / $150K MFJ. Vehicle must be at least 2 model years old. Buyer must purchase from a dealer (no private sale). Once-per-vehicle (the credit can only be claimed for a given VIN once). Buyer can only claim once per 3 years.
📚 Sources & references
Last updated: May 23, 2026