Well , the days of being able-bodied to count on a $ 7,500 rabbet on EV purchases may be coming to a close . The Union EV tax credit has long been a way for many customers to vindicate the purchase of an electric fomite over a traditional gas - powered one , especially considering the fact that EVs are typically more expensive upfront   ( though they cost less to maintain and power over time ) . Many of the most popular EV models have qualified for the citation over the years , including theTesla Model 3and Model Y , Kia EV6,Hyundai Ioniq 5 , and so on .

With the approaching change in administration , those days could shortly be over . According toa news report from Reuters , President - elect Donald Trump ’s conversion squad is reportedly planning to pop the EV tax credit rating — a move that would likely dissuade many potential buyers from opting for an EV .

The move will have a pretty substantial impact on the automotive industry in general . EV manufacturers have been banking on the revenue enhancement reference as a mode to lower the price of their cars for client , and many manufacturers have built plant in the U.S. in an exploit to ensure that their vehicles qualify for the credit .

The word is n’t great for those who were planning on buying an EV in the next few eld . If you are about ready to pull the trigger , you may want to jump thinking more seriously about it as we head nigher to the beginning of Trump ’s terminal figure in January .

Unknowns

Of naturally , to be decipherable , Trump ’s team has n’t in reality announced that it ’s planning on getting disembarrass of the credit just yet , with the Reuters report citing two unnamed generator with lineal knowledge of the thing . It ’s entirely possible that the conclusion could be reversed , specially as more information comes to sparkle about how it will impact American automotive producer and jobs for American workers in newly build industrial plant . Even if the Trump team does announce that it will be kill the credit , it ’s whole potential that they could instead phase it out over the path of a few months or year rather of ending it with immediate effect .

All that is to say that we may end up witness out that the new administration wo n’t kill the revenue enhancement credit at all , whether through a decision or by having other priorities first . In other quarrel , you may find yourself buying an EV with the fear of the taxation course credit going by , only to find that it remains in place for the next few geezerhood .

The best models that currently qualify

If you do decide to buy an EV now to take reward of the credit before it goes away , there are a few models that you should consider .

Those in the market for a crossover voter - sized vehicle are spoiled for options . There ’s the extremely democratic Tesla Model Y , alongside the Hyundai Ioniq 5,Ford Mustang Mach - E , and the Kia EV6 , all of which are see to be among the good in their class .

If you ’re instead looking for an SUV - sized fomite , then your options are a little more circumscribed , but there are still some great vehicles out there . Perhaps the best fomite that restrict for the EV tax credit and is SUV - sized isthe Rivian R1S(though keep in mind the price limitation of the credit , outlined below ) . For a slightly more affordable selection , it ’s worth considering theKia EV9 , which is also an excellent SUV .

Perhaps you ’re instead looking for a hand truck ? In that case , the Ford F-150 Lightning is an excellent selection , as is the Rivian R1T.

How to take advantage of the federal EV tax credit

There are some road map for the Union EV tax acknowledgment that you ’ll need to keep in mind if you need to take full advantage of it . The credit depends on where EVs are made , and only vehicle manufacture in North America qualify . Not only that , but these vehicles must have an MSRP under $ 80,000 for an SUV or under $ 55,000 for a sedan or hatchback . You may still be able to get the credit on your revenue enhancement if you rent a vehicle instead of buying one . to boot , plug - in intercrossed vehicle may qualify for the mention , but traditional hybrid cars do not .

There are also income limitation related to the tax credit . For those purchase a fresh EV , the income bound for a undivided person or married brace filing on an individual basis is $ 150,000 . For the head of household , the demarcation is $ 225,000 , while for those married and filing together with , it ’s $ 300,000 . For those buying a used EV , the income limit is half of those numbers .