Summary of the Electric Vehicle Tax Credit

Summary of the Electric Vehicle Tax Credit

Are you thinking about purchasing an electric vehicle? You may want to consider purchasing a passenger vehicle or truck that was approved for the Plug-In Electric Drive Motor Vehicle Tax Credit.

How much is the Plug-In Electric Drive Motor Vehicle Tax Credit? 

For vehicles acquired after 12/31/2009, the credit is equal to $2,500 plus:

  • $417 for a vehicle that draws propulsion energy from a battery with at least 5 kilowatt hours of capacity
  • $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours

The total amount of the credit allowed for a vehicle is limited to $7,500. In addition, the credit begins to phase out for a manufacturer’s vehicles when at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States.

Which electric vehicles qualify for the Plug-In Tax Credit?

The IRS has a list of eligible vehicles, which includes the newly added 2022 models. The vehicles added include BMW and Mini vehicles. The BMW 745e XDrive has a credit amount of $5,836. The MINI Cooper S E Countryman ALL4 has a credit of $5,002. 

For more information and the current IRS list of eligible vehicles, visit


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