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Tax credit for EV 2023: Get up to $7,500 back on Tesla models, other energy efficient cars

When times are tight, every penny counts. That goes for money back on a tax return too. If you purchased a Tesla, or another kind of electric vehicle, you may be eligible for over $7,000 in tax credits.

In a move to incentivize the use of fuel-efficient cars, the government has written into the tax code a money-back perk for those who opt to buy electric and fuel cell vehicles. Tesla, a big name in the industry, has a number of models that qualify for this credit.

Here's how much money is up for grabs with 2023's Tesla Tax Credit, and all the requirements that must be met to get it.

2023 EV tax credit list: US Treasury updates list of EVs that qualify for tax credits. See which cars qualify.


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Do you get a tax credit for buying a Tesla?

Yes. The government allows for various tax credits for the purchase of plug-in electric vehicles (EV) or fuel cell vehicles (FCV).

Tesla, arguably the most famed EV in the game, is on that list.

The amount of tax credits you may qualify for depends on when you bought the Tesla.

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Tesla Tax Credit 2023 income limit

The Internal Revenue Service allows for a clean vehicle tax credit of up to $7,500 for 2023. Tesla has several qualifying models including:

  • Tesla Model 3 Standard Range Rear Wheel Drive

  • Tesla Model 3 Performance

  • Tesla Model Y All-Wheel Drive

  • Tesla Model Y Long Range All-Wheel Drive

  • 2022 Model Y performance

For the car to qualify for this specific credit, the vehicle must have been bought on or after Jan. 1, 2023, and manufactured in North America. Additionally, the manufacturer suggested retail price (MSRP) cannot exceed $80,000 for vans, sport utility vehicles and pickup trucks, and $55,000 for other vehicles.

There are also income requirements associated with the credit.

A man talks on his phone while sitting in his electric car at a Tesla charging station on Friday, April 2, 2021, in Marin City, Calif.
A man talks on his phone while sitting in his electric car at a Tesla charging station on Friday, April 2, 2021, in Marin City, Calif.

Filers must not have a modified adjusted gross income (AGI) greater than:

  • $300,000 for married couples filing jointly

  • $225,000 for heads of households

  • $150,000 for all other filers

What is capital gains tax? A guide to 2023 rates, long-term vs. short-term

What are the new 2023 tax brackets?: Answers here

EV Tax Credit 2022 and prior

If you purchased a qualified plug-in EV between 2010 and 2022, you may also be eligible for a tax credit of up to $7,500.

There is an extra requirement for EVs purchased after August 16, 2022 but before 2023. These cars must have undergone final assembly in North America. You can determine this by looking at your car's vehicle identification number (VIN) and cross-referencing it with the U.S. Department of Energy's database.

For Tesla specifically, models are being phased out and vehicles purchased after Jan. 1, 2020, are not eligible for a credit. This chart indicates which date ranges might still guarantee you some money back.

What other vehicles are on the 2023 EV tax credit list?

The U.S. Department of Treasury released on Monday a full list of the electric vehicles that qualify for various tax credits based on new manufacturing rules. The new battery sourcing requirements are meant to incentivize using battery minerals from the U.S. and its trade partners.

Vehicles qualifying for the full $7,500 in tax credits include:

  • Cadillac Lyriq

  • Chevrolet Blazer

  • Chevrolet Bolt

  • Chevrolet Bolt andEUV

  • Chevrolet Equinox

  • Chevrolet Silverado

  • Chrysler Pacifica PHEV

  • Ford F-150 Lightning

  • Lincoln Aviator Grand Touring

  • Tesla Model 3 Performance

  • Tesla Model Y (All-Wheel Drive, Long Range All-Wheel Drive and 2022 Performance)

Vehicles qualifying for the $3,750 in tax credits, include:

  • Ford Escape Plug-in Hybrid

  • Ford E-Transit

  • Ford Mustang Mach-E

  • Jeep Grand Cherokee PHEV 4xe

  • Jeep Wrangler PHEV 4xe

  • Lincoln Corsair Grand Touring

  • Tesla Model 3 Standard Range Rear Wheel Drive

More of your 2022 tax season questions answered

This article originally appeared on USA TODAY: How to claim a $7,500 EV tax credit: What to know about 2023 IRL rules