---
title: Summary of the Electric Vehicle Tax Credit
description: Are you considering purchasing an electric vehicle? You may want to consider purchasing a passenger vehicle or truck which was approved for the Qualified Plug-In Tax Credit.
---

[Trout CPA Blog | Tax & Business-Related Topics ](https://www.troutcpa.com/blog)

# [Summary of the Electric Vehicle Tax Credit](https://www.troutcpa.com/blog/summary-of-the-electric-vehicle-tax-credit)

 Written by [Admin](https://www.troutcpa.com/blog/author/admin) | Jul 7, 2021 8:48:35 PM

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](https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit), which includes the newly added 2022 models. The vehicles added include BMW and Mini vehicles. The [BMW 745e XDrive](https://www.bmwusa.com/vehicles/7-series/sedan/plug-in-hybrid.html) has a credit amount of $5,836. The [MINI Cooper S E Countryman ALL4](https://www.miniusa.com/model/countrymanhybrid.html) has a credit of $5,002. 

For more information and the current IRS list of eligible vehicles, visit [https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit](https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit)

[View full post](https://www.troutcpa.com/blog/summary-of-the-electric-vehicle-tax-credit)

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