2025 Guide to Cars Eligible for the EV Tax Credit
If you're in the market for an electric vehicle (EV) in 2025, you're likely aware of the federal EV tax credit, which can save you up to $7,500 on your purchase. This incentive makes moving to an eco-friendly vehicle more accessible and affordable for many buyers. But like any government program, the rules can be confusing, and the list of qualifying vehicles continually evolves.
To simplify things, we've compiled an overview of the EV tax credit, detailed the vehicles eligible in 2025, and explained how you can take full advantage of these savings.
What Is the EV Tax Credit?
The federal EV tax credit, valued at up to $7,500, was created to encourage drivers to adopt cleaner vehicles by reducing the financial burden of EV purchases. However, not all vehicles or buyers qualify for the full credit. Eligibility depends on factors such as vehicle type, manufacturer, price, and even income limits for buyers.
Starting in 2024, buyers can opt to apply the credit at the time of purchase, effectively lowering the vehicle's upfront cost. This change makes the program more accessible to those who may not want to wait until filing their tax return to see the benefit.
Key Eligibility Requirements
To qualify for the EV tax credit, vehicle and buyer requirements must be met, including:
Assembly Location: The EV must be assembled in North America.
Battery Sourcing: A specific percentage of the vehicle’s battery components and critical minerals must be sourced domestically or from free-trade agreement countries.
Price Caps:
$80,000 for SUVs, vans, and light trucks.
$55,000 for sedans, wagons, and hatchbacks.
Income Limits:
For individuals, annual adjusted gross income (AGI) must not exceed $150,000.
For heads of households, the threshold is $225,000.
For joint filers, the limit is $300,000.
It’s important to also verify the specific trim and VIN (vehicle identification number) of a vehicle, as not all versions of a model may qualify for the credit.
Cars Eligible for the $7,500 EV Tax Credit in 2025
Here’s a list of electric vehicles certified for the full $7,500 tax credit in 2025. Keep in mind that eligibility can depend on specific trims and pricing.
New Additions for 2025
Tesla Cybertruck (Single & Dual Motor trims, $7,500 credit, under $80,000 MSRP cap).
Kia EV9 (Qualifies for all trims, three-row SUV, with a range of up to 304 miles).
Hyundai Ioniq 9 (First three-row electric SUV by Hyundai with an impressive range of up to 335 miles).
Continued Eligible Models
SUVs and Crossovers
Acura ZDX
Cadillac Lyriq & Optiq
Chevy Blazer EV, Equinox EV, and Silverado EV
Genesis Electrified GV70
Honda Prologue
Hyundai Ioniq 5
Kia EV6
Sedans and Hatchbacks
Tesla Model 3 (All trims, including Long Range and Performance).
Pickups
Ford F-150 Lightning
Luxury EVs
Tesla Model Y (All trims, including Performance models).
Tesla Model X (SUV with distinctive design, eligible despite high price).
Versions such as the Ford Mustang Mach-E and Rivian R1T, previously eligible, are notably absent in 2025 due to new sourcing rules.
Leasing and Commercial Purchases
If you’re considering a lease, you might still qualify for cost reductions through a “commercial EV credit.” Leasing companies can receive this credit and potentially pass the savings on to lessees in the form of reduced monthly payments. Unlike the traditional EV tax credit, this commercial exemption isn’t subject to battery sourcing or assembly location requirements.
Maximizing Your EV Tax Credit
To fully benefit from the federal EV tax credit in 2025, here are some tips to guide your purchase:
Confirm Eligibility: Use online IRS tools or consult your dealer to ensure the vehicle model you’re eyeing qualifies.
Choose at Purchase or Tax Filing: Decide whether to apply the credit at the point of sale or claim it when filing your taxes.
Stay Under the Income Limits: Keep your adjusted gross income within the required thresholds.
Check State Incentives: Pair the federal credit with local rebates or incentives for even more savings.
Why the EV Tax Credit Matters
The federal EV tax credit plays a critical role in expanding EV adoption by making these vehicles more affordable. As the automotive market increasingly shifts toward electrification, these incentives are designed to accelerate the transition to cleaner energy use and reduce our environmental footprint.
Final Thoughts
Purchasing an electric vehicle in 2025 not only supports a greener planet but also unlocks financial benefits thanks to the EV tax credit. Whether you’re looking to snag a Tesla Cybertruck, a practical Chevrolet Equinox EV, or a luxury Genesis Electrified GV70, understanding the latest tax credit rules is essential to maximizing your savings.
Looking to take the next step? Be sure to consult with your dealer or use online tools like the EPA’s VIN checker to confirm your vehicle’s eligibility. With countless models still qualifying—and even more expected mid-year—2025 is shaping up to be an exciting time to go electric.