The Inflation Reduction Act passed in Congress and has been signed into law. The IRA makes some critical changes to the $7,500 federal tax credit for electric vehicles, expanding or restricting access depending on the vehicle. The 200,000 manufacturer limit has been removed. But to be eligible, a new EV must now be assembled in North America. It must also be sold beneath a $55,000 cap for electric cars and an $80,000 cap for electric trucks and SUVs. Here are the 11 vehicles currently on the road that meet those thresholds.*
* Note that the formula also has complicated provisions to ensure both the battery manufacturing and key battery materials are sourced in America. Those may affect the availability of the full tax credit for vehicles that would otherwise qualify.
The Cadillac Lyriq is built in Tennessee and starts at $61,795, which is less than the $80,000 threshold for SUVs.
The Chevrolet Bolt EV is manufactured in Michigan and starts at $28,800, well below the $55,000 threshold for cars.
The Chevrolet Bolt EUV is manufactured in Michigan and starts at $27,200, below the $55,000 threshold for cars.
The Ford F-150 Lightning is assembled in Michigan. Prices have increased for 2023. But all Standard Range models will fall below the $80,000 threshold and be eligible for the tax credit.
The Ford Mustang Mach E is built in Mexico, which is part of North America. It starts at $43,895 — well below the $80,000 threshold for SUVs — so all trim levels qualify.
Nissan builds the Leaf in Tennessee. It starts at $27,800, well below the $55,000 threshold for electric cars.
The Rivian R1S is built in Illinois. It starts at $72,500. Certain configurations will fall under the $80,000 threshold for SUVs and trucks.
The Rivian R1T is built in Illinois. It starts at $67,500. Certain configurations will fall below the $80,000 threshold for SUVs and trucks.
Tesla builds the Model 3 in California. As of this writing, the RWD Model 3 starts at $46,990, which is beneath the $55,000 threshold for electric cars. The 200,000 vehicle limit has been lifted making it eligible again.
Tesla assembles the Model Y at facilities in California and Texas. As of this writing, the Model Y starts at $58,190, which is below the $80,000 threshold for SUVs.
VW began production of the ID.4 in Tennessee in July. The ID.4 starts at $37,495, well below the $80,000 threshold for SUVs.
Polestar is coming after Porsche and Tesla with their first SUV.