EV Tax Credit (30D)
A federal tax credit of up to $7,500 for new qualifying electric vehicles purchased in 2023-2032 under IRA section 30D. Income and MSRP caps apply. Assembly and battery sourcing rules restrict eligibility.
Why It Matters
The EV tax credit makes electric vehicles price-competitive with comparable gas models. Combined with lower fuel and maintenance costs, EVs are increasingly the cheaper option.
Related Tools
Related Terms
Electric Vehicle (EV)
A vehicle propelled entirely by one or more electric motors, powered by a rechargeable battery pack. Includes battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
IRA (Inflation Reduction Act)
Landmark 2022 federal legislation that extended and expanded clean energy tax credits, including the 30% solar ITC through 2032, and added new incentives for batteries, heat pumps, and EVs.