If you are looking to trade in your gas clunker for a new EV in 2024 to take advantage of the updated $7500 tax credit at the time of delivery, there are seven options for you, according to the I.R.S. and the official US Dept. of Energy website.

Starting in 2024, you may be able to get the tax credit applied at the time of delivery of your eligible qualifying EV. 

This savings is realized as soon as you purchase the car rather than waiting until tax season.

Of course, you must be a qualified buyer, and the EV you buy must also meet the requirements. So, here are the seven EVs that qualify as of January 2024. 

FORD

The Ford F-150 Lightning qualifies for the full $7500 at purchase. Both versions, the Standard Range and the Extended Range, are listed on the US Dept. of Energy website.

TESLA

The best-selling Tesla Model Y qualifies. All three variants can get the full $7500. This includes the All-Wheel Drive, Performance, and Rear-Wheel Drive.

The Tesla Model X Long Range qualifies. The X is notable for its famed falcon wing doors. It demands a higher price, and is thought of as the “classic Tesla.”

The Tesla updated *Model 3 Performance also qualifies (when released). Expect high demand for this car. The $7500 Tax Credit will brings its price down to a remarkable low!

WHAT ABOUT OTHER EVs?

Electric vehicles are not created equal when it comes to tax credits. While Tesla and Ford have secured their spot in the tax credit hall of fame, other electric vehicles have been left out in the cold. Why, you ask? Well, it's like trying to find a vegan option at a steakhouse.

The government has set specific criteria for electric vehicles to qualify for tax credits. These include the vehicle's final assembly location, battery capacity, and critical mineral sourcing. Tesla and Ford have navigated this bureaucratic maze and come out with a shiny tax credit in hand. Other electric vehicles, however, have stumbled upon one or more of these hurdles, leaving them out of the tax credit party.

So, if you're considering purchasing an electric vehicle and want to take advantage of the tax credits, it's worth looking closer look at the fine print. After all, who doesn't love finding a government-approved bargain?

WILL I QUALIFY?

Who is eligible for the credit: Individuals and their businesses who buy a qualified electric vehicle for personal use in the United States and meet the income requirements.

Income requirements: Your modified adjusted gross income (AGI) must be less than:

• $300,000 for married couples filing jointly

• $225,000 for heads of households

• $150,000 for all other filers

You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is lower. If your modified AGI is below the threshold in one of the two years, you can claim the credit.

Nonrefundable credit: The credit is nonrefundable, which means you can't get more on the credit than you owe in taxes. You also can't apply excess credit to future tax years.

Note: This simplified version is for general understanding and may not cover all details or nuances in the original legal jargon. For specific advice or guidance, please consult a tax professional or refer to the original source.

My thoughts

If you dream of cruising the open road in a Tesla or Ford, there are a number of options to choose from for you! Don’t forget to explore all your financing options by checking out what Xcelerate has to offer for leasing, lease-to-buy, and loans. Happy driving!

* As of January 15, the Model 3 Performance is not yet listed on the Tesla website. It will be listed soon. 

Source: https://www.fueleconomy.gov/feg/tax2023.shtml

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