With President-elect Donald Trump poised to return to the White House, concerns are mounting in the electric vehicle (EV) industry, given his past opposition to EVs and his administration’s stance on technology. His transition team is reportedly planning to eliminate the $7,500 tax credit for electric vehicle purchases, which could significantly impact EV sales.
The EV tax credit is a key component of the Inflation Reduction Act (IRA) introduced under President Biden, and it has been a crucial factor in driving the adoption of electric vehicles. In just three months, EV buyers have saved $600 million thanks to these credits. As most early adopters have already purchased their EVs, automakers are increasingly focused on attracting consumers concerned about the high cost of electric vehicles.
Several EV models qualify for the full $7,500 tax credit, but if Trump proceeds with the repeal, these vehicles will become more expensive. Here are some of the most notable electric vehicles to buy before the tax credit expires:
- Tesla Models (Model Y, Model X, and Model 3)
Tesla remains one of the leaders in the EV market, and many of its popular models qualify for the full tax credit. This includes the 2024 Model Y (rear-wheel drive), the 2023-2025 Model Y Performance, and the 2023-2025 Model X with all-wheel drive. However, the Model S luxury car and the Cybertruck are not eligible for the credit.
- Chevrolet Blazer EV
The Chevrolet Blazer, one of GM’s most anticipated electric SUVs, qualifies for the full tax credit for both the 2024 and 2025 model years. Chevy’s Bolt EV and Bolt EUV models, which also qualified for the credit, are being discontinued for now but will make a comeback in 2025.
- Cadillac Lyriq
Cadillac’s Lyriq has become a dominant player in the luxury electric SUV market. With over 20,000 units sold in the U.S. through September, the Lyriq qualifies for the $7,500 tax credit on both the 2024 and 2025 models. It starts at $58,590, and in 2026, a performance version, the Lyriq-V, will be released.
- Acura ZDX
The 2024 Acura ZDX, an electric SUV from Honda’s luxury division, qualifies for the full tax credit. It shares its platform with the Cadillac Lyriq and comes in various trims, including the high-performance ZDX Type S, which also qualifies for the $7,500 credit.
- Volkswagen ID.4
Volkswagen’s ID.4 SUV is one of the few models that qualifies for the EV tax credit. Both the 2023 and 2024 model years are eligible, and the ID.4 is built in Chattanooga, Tennessee.
- Ford F-150 Lightning
Ford’s electric version of its iconic F-150 truck, the F-150 Lightning, qualifies for the full tax credit on both standard-range and extended-range battery versions from the 2022-2025 model years. Ford has also introduced sales incentives to boost demand.
- Chevrolet Equinox EV
The Equinox electric SUV, which started selling in 2024, also qualifies for the full tax credit, making it an attractive option for consumers looking for an affordable EV. With the tax credit, prices could drop as low as $27,495.
- Chrysler Pacifica Hybrid
The Chrysler Pacifica plug-in hybrid is one of the few hybrids eligible for the full $7,500 tax credit. This gives it an edge over its competitors, offering both electric and gas-powered driving options.
- Honda Prologue
Honda’s first all-electric SUV, the Prologue, is another strong contender in the market. It performed well in sales, ranking as the fifth-best-selling EV in the U.S. for the last quarter.
- Hyundai Ioniq 9
Hyundai plans to launch the Ioniq 9 in 2026, a new three-row electric SUV that will likely qualify for the full tax credit, reflecting the company’s commitment to electric vehicle adoption.
Partial Credit Vehicles
Several other electric and plug-in hybrid models qualify for a partial tax credit of around $3,750. These include Rivian’s R1T electric pickup and R1S electric SUV, Nissan’s Leaf, and various hybrid models from Jeep, Ford, Lincoln, and Audi.
As the debate over the future of the EV tax credit continues, buyers looking to save on their next electric vehicle should consider acting before any changes are made to the program.
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